Solar Lease vs. Buy: Which Option Is Right for You?

When you go solar, you have two main options: lease the system or buy it (either with cash or a loan). Each has real advantages and drawbacks. Here's a clear comparison to help you decide.

Solar Lease: How It Works

With a solar lease, a financing company owns the system and installs it on your roof. You pay a fixed monthly fee for 25 years. The leasing company claims the 30% federal tax credit, which is why they can offer $0 down.

Pell Solar's lease packages:

• Solar Shield: $234/month (16 panels + Tesla Powerwall 3)
• Solar Shield+: $307/month (32 panels + Tesla Powerwall 3)

Both include full maintenance, monitoring, and a 90% production guarantee for the entire 25-year term.

Solar Loan: How It Works

With a solar loan, you own the system from day one. You borrow money to pay for it, make monthly payments for 12–20 years, and claim the 30% federal tax credit yourself.

Typical loan payments for a comparable system: $180–$260/month for a 20-year loan at 6–8% APR. After the loan is paid off, you own the system free and clear — and your electricity is essentially free.

Cash Purchase: How It Works

Pay the full system cost upfront. You own the system, claim the tax credit, and have no monthly payments. Best long-term return — typical payback period is 6–9 years, after which your electricity is free for the remaining 15+ years of the system's life.

Side-by-Side Comparison

When a Lease Makes Sense

• You want $0 down with no financial risk
• You don't have enough federal tax liability to benefit from the 30% credit
• You want maintenance included — no surprise repair bills
• You want a production guarantee

When Buying Makes Sense

• You have federal tax liability to use the 30% credit
• You plan to stay in your home long-term
• You want to maximize long-term savings
• You want to own an asset that adds value to your home

The Bottom Line

Both options can make financial sense — it depends on your situation. A Pell Solar consultant can run the numbers for both options and help you decide which is right for your home and goals.

Get a free comparison for your home →