Solar Panels: Lease vs. Buy

Leasing vs. buying solar panels

Leasing solar panels costs less upfront, while purchasing them usually costs more out of pocket. The trade-off is that owners might get more long-term value out of the system, especially where state and local incentives still apply.

Leasing solar panels

Leasing solar panels can be a budget-friendly way to go solar, with little to no upfront costs, lower monthly payments and potentially easier approval for people with lower credit scores. Your combined lease and utility costs should ideally be less than your current electricity bill. And if you lease, the solar company handles panel maintenance, but if you buy, it’s your responsibility.

That said, leasing comes with trade-offs. You don’t own the system — instead, you're paying to use the energy it produces, usually under a long-term contract. And while you might initially have low monthly payments, payments could increase over time. Some leases also include an escalator clause, usually 1% to 3% per year, increasing your monthly payment even if usage is the same.

Buying solar panels

Owning solar panels can offer long-term savings and a solid ROI, with systems typically paying for themselves within around 13 years. Even though the federal solar homeowner credit expired at the end of 2025, owners in some states can still benefit from state tax credits, upfront rebates, renewable energy credits and performance-based incentive programs.

Homeowners may also benefit from increased property value, depending on where they live, as well as full control over maintenance and upgrades.

On the downside, buying solar panels usually means higher upfront costs and requires you to handle all maintenance and repairs. Your ROI also depends on whether you stay in your home long enough for the system to pay for itself and whether the system is sized appropriately for your electricity use.

With a typical 10-kilowatt (kW) solar energy system costing nearly $28,000, paying cash upfront is not an option for everyone. Instead, many homeowners opt for a loan through a solar financing company. Loan approval and terms vary by lender, but stronger credit, steady income and home equity usually help.

» MORE: Do solar panels increase home value?

Pros and cons of leasing vs. buying

Whether you’re leasing or buying, how you pay for solar can dramatically impact your savings, flexibility and long-term returns. Consider the pros and cons of both leasing and buying solar panels before making a final decision.

Pros and cons of leasing

Compare the pros and cons of leasing solar panels:

Pros and cons of buying

Compare the pros and cons of buying solar panels:

Leasing vs. buying: who it’s best for

Solar leases are usually best for people who can’t afford to pay upfront or who prefer a low-maintenance option. Buying tends to appeal more to homeowners seeking the strongest long-term savings and greater control over their system.

Who should lease solar panels?

Solar leases can make the most sense for homeowners who want to go solar without a large upfront investment. They’re also typically best for people who value convenience and don’t care to handle maintenance, repairs or performance monitoring themselves.

Leasing solar can also help you reduce your carbon footprint and save money on utility bills. Plus, they’re a great way to experience solar power without making a long-term commitment like you would with a solar loan. Just be sure to compare the lease’s cost against projected utility rate increases before signing.

Who should buy solar panels?

Buying solar panels is typically best for environmentally conscious homeowners who want a long-term renewable energy investment. If you stay in the home for many years, the savings can add up more quickly. That’s especially true if you qualify for any state tax credits, cash rebates or incentive programs.

Note that if you’re interested in financing your solar panels, you’ll generally need a good credit history and steady income to qualify. Whether you pay cash or finance your new system, you’ll also get more control over the system and a greater sense of ownership.

“The best candidates for a solar loan are typically homeowners with good credit and steady income,” said Elliot Bailey, CEO and chief editor of Sol Voltaics.

» MORE: Solar energy pros and cons

What customers say

Going solar is generally worth it if you like the idea of lowering your monthly utility bills, helping the environment and gaining more energy independence. But it doesn’t work for everyone.

Some ConsumerAffairs reviewers were happy with their solar lease, while others were dissatisfied with misleading sales tactics, hidden fees and a lack of transparency in contracts, among other issues.

William, a reviewer in Connecticut, said they had an overall good experience with their solar company.

“Since having the service, my electric bill is lower. Throughout the summer, late spring to early fall, I don't pay anything to the electric company,” William said.

Robert, a reviewer in Illinois, said this of their solar experience: “I like the idea that I can run my air conditioning and not have to worry about the cost. [...] My electric bill is $20 a month [for] a two-story house, and four bedrooms.”

Joseph in Colorado was much more frustrated with their solar company, saying they haven’t experienced the kind of savings they were sold on.

“I was told the amount of solar we’ll produce will offset the cost of the solar, and that's not true. I'm currently paying out of pocket for the solar and still paying for electrical services,” Joseph said. “I was told I wouldn't have a utility bill from my service provider, and I get a utility bill every month from them, and I've never gotten a credit for power produced and back on the grid.”

FAQ

Bottom line

Buying was once easier to justify because of the federal solar tax credit, but that homeowner credit expired at the end of 2025. As of now, leasing can be a more appealing option for homeowners who want to go solar with little or no upfront cost, while buying still wins for homeowners who want control, long-term savings and access to state or local incentives.

Ultimately, the choice between leasing and buying solar panels depends on your priorities, preferences and budget.