Solar Lease vs. Buy: Which Actually Saves You More?

This is the single most common solar decision, and the right answer depends less on your electric bill and more on how long you plan to stay in your home and how you feel about a 20-25 year contract on your roof.

The core trade-off

Buying (cash or loan) means higher upfront commitment but you keep 100% of the savings, any state tax credit, and the resale value bump many appraisers give owned solar systems. Leasing/PPA means little to no upfront cost and no maintenance responsibility, but the financing company keeps the tax benefit, your savings are usually smaller, and the contract follows the house.

What happens when you sell a home with a solar lease

This is where leases get complicated. The lease doesn't automatically end when you sell — the buyer generally needs to either qualify to assume the remaining lease payments, or you need to buy out the system before closing (often several thousand dollars, calculated from a depreciation schedule in the contract). Some buyers walk away from deals specifically because of an unresolved solar lease. If you're buying: read the transfer and buyout terms before you sign, not after you list your house.

Owned systems and home value

Multiple appraisal studies (Zillow, Lawrence Berkeley National Laboratory research) have found owned solar systems can add measurable resale value, roughly in the range of $4,000-$6,000 per kW of installed capacity in markets where buyers value energy efficiency, though this varies a lot by region and isn't guaranteed. Leased systems typically don't get the same treatment in an appraisal, since the buyer would be taking on a contract rather than an asset.

A simple way to decide

• Buy if: you plan to stay 7+ years, have the cash or decent loan terms available, and want maximum long-term savings and any remaining state credit.
• Lease/PPA if: you want $0-down clean energy with no maintenance thinking, don't qualify for financing, or the state credit you'd lose by leasing isn't large enough to change your math (check your state's tier in our state guide).