Solar Lease vs. Buy in 2026: What Changed and How to Decide

• Buy with cash. You pay the installer, own the system and keep all the savings. You also own the repairs once warranties run out.
• Buy with a loan. Same ownership, but you pay interest and often a hidden dealer fee built into the price; see our financing guide.
• Lease or power purchase agreement (PPA). A company owns the panels on your roof. With a lease you pay a fixed monthly amount; with a PPA you pay for each kWh produced. Either way the company maintains the system and claims owner incentives.

Owners used to get a large share of the price back at tax time. Now a buyer pays the full price minus state and utility incentives, while a leasing company may still claim the Business credit for leased and PPA systems (48E)^[2]: Claimed by the system owner, not the homeowner; solar must begin construction by July 4, 2026 or be in service by December 31, 2027^[2]. In theory some of that value reaches you as a lower lease price. In practice, ask each provider directly whether the price assumes the credit, and what happens to your price if they cannot claim it.

Buying usually wins over the life of the system because you are not paying a company's financing cost and profit margin. Berkeley Lab's latest data show the national median installed price at $3.60 per watt est.^[3] for host-owned systems, with cash purchases at $3.00 per watt est.^[3] and loan-financed systems at $4.50 per watt est.^[3]. A lease avoids the up-front cost but you pay for that convenience every month. Use our calculator with your own bill to see what buying would save, then compare that with the lease's monthly payment and escalator over the same years.

• You cannot pay up front and cannot get a fair loan.
• You do not want to own repairs, monitoring or eventual inverter replacement.
• Your state or utility gives owners little extra value, so the leasing company's credit is the main incentive left.

1. Escalator. A yearly payment increase can eat your savings if it rises faster than your utility rates.
2. Production guarantee. What the company pays you if the system underperforms, and how it is measured.
3. Transfer on sale. Buyers and lenders must accept the lease when you sell; ask for the transfer process in writing.
4. End of term. Removal, renewal or buyout, and at what price.
5. Roof work. Who pays to remove and reinstall panels if you need a new roof.

State laws add protections. In Arizona, for example, Recurring solar lease payments cannot start until the utility grants permission to operate and the system is energized and interconnected.^[4] In Texas, Residential solar buyers and lessees can cancel without penalty by written notice within 5 business days of signing. An affiliated or referred lender must cancel the accompanying loan.^[5]