Solar Power - Lease Vs Buy

A purchased system typically pays for itself in 6 to 9 years . After that, the electricity generated is essentially free for the remainder of the system's life (25+ years).

A lease can be a hurdle during a sale. The buyer must agree to take over the lease and meet credit requirements. If they refuse, you may be forced to buy out the remainder of the lease to close the sale, which can cost thousands. Final Recommendation

While you save money from day one, those savings are smaller. Most leases include an annual price escalator (often 1–3%), meaning your monthly payment increases over time, which can erode savings if utility rates don't rise as quickly. 4. Impact on Home Resale solar power lease vs buy

When you purchase a system, you are the sole beneficiary of the Investment Tax Credit (ITC), which currently allows you to deduct 30% of the installation cost from your federal taxes. You also keep any local rebates or Solar Renewable Energy Certificates (SRECs).

You cannot take advantage of tax credits (e.g., you have low tax liability), you prefer a "hands-off" maintenance approach, or you want immediate savings without any upfront investment. A purchased system typically pays for itself in 6 to 9 years

Modern solar panels are highly durable and usually come with 25-year performance warranties. However, if a component like an inverter fails outside of warranty, the repair cost is yours.

You have the capital (or qualify for a loan), you can benefit from a large tax credit, and you want to maximize the long-term value of your property. The buyer must agree to take over the

The leasing company acts as the owner, so they claim the 30% tax credit and any state incentives. In exchange, you pay a fixed monthly "rent" for the equipment, which is usually lower than your previous utility bill. 2. Maintenance and Performance