CostSolar Loan vs Solar Lease: Cost Comparison
Buying solar with a loan almost always saves more money — you get the 30% federal tax credit and the panels themselves. Leases only make sense if you can't use the tax credit.
Typical range: $15,000 – $35,000 system cost
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Solar Loan (Ownership)
$0 down, $80–$180/mo for 20–25 yrs
Pros
- Get the 30% federal tax credit
- You own the panels
- Adds ~$15k to home value
- $40k–$80k lifetime savings
Cons
- You handle warranty claims
- Payment fixed even if you move
- Credit check required
- Loan interest adds ~20%
Solar Lease / PPA
$0 down, $50–$150/mo
Pros
- Installer handles all maintenance
- No credit check on some plans
- Immediate bill savings
- No upfront investment
Cons
- Miss the 30% tax credit
- Payments escalate 2–3%/yr
- Doesn't add home value
- Complicates home sale
Bottom line
If you owe federal income tax and plan to stay 7+ years: loan-to-own wins by $20k+ over lifetime. Leases only make sense for retirees with no tax liability or short-term owners.
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