Key Differences
Buying Solar
- ✓ You own the system
- ✓ Claim 30% federal tax credit
- ✓ Higher upfront cost
- ✓ Better long-term ROI
- ✓ Full control over system
- ✓ Can sell with home
Leasing Solar
- ✗ Third party owns system
- ✗ No tax credit for you
- ✓ Low or zero upfront cost
- ✗ Lower long-term savings
- ✗ Limited control
- ✗ May complicate home sale
Cost Comparison
Over 25 years, buying typically saves $5,000-$15,000 more than leasing, even after accounting for the upfront investment.
Example: $1,500 system purchased = $1,050 after tax credit. Over 25 years, saves ~$8,000 in electricity costs. Leasing the same system costs ~$3,000 in lease payments over 25 years, saving only ~$5,000.
When to Buy
- You can claim the federal tax credit
- You have cash or can get a low-interest loan
- You plan to stay in your home long-term
- You want maximum ROI and savings
- You want full control over your system
When to Lease
- You can't claim tax credits (low tax liability)
- You don't have upfront capital
- You're renting or may move soon
- You want zero maintenance responsibility
- You prefer predictable monthly payments
💡 Recommendation
For most homeowners, buying is the better financial choice if you can afford the upfront cost and claim the tax credit. Use our calculator to compare your specific situation.