Solar · Repair, replace or choose · Updated November 2026
Buying vs. Financing vs. Leasing Solar Panels
How you pay for solar decides who owns the system, who receives incentives, and what happens when you sell the house. The monthly number in a sales pitch is only part of the comparison.
The four main options
| Option | Who owns it | Incentives | Typical commitment |
|---|---|---|---|
| Cash purchase | You | You may qualify for state or local incentives | Paid up front; you handle upkeep unless covered by warranty |
| Loan | You | Same as a purchase | Monthly loan payments; check APR, fees and liens |
| Lease | The solar company | Usually kept by the company | Fixed monthly payment, often for about 20 years |
| Power purchase agreement (PPA) | The solar company | Usually kept by the company | You pay per kWh the system produces |
Based on the FTC's consumer guidance on solar.
Federal tax credits for homeowner-owned systems (Section 25D) ended for installations completed after December 31, 2025. Be cautious of any proposal that still counts that credit for a new system.
Contract terms to read closely
- Escalators: whether lease or PPA payments rise each year, and by how much.
- Selling your home: whether the contract transfers to a buyer, what the buyer must qualify for, and any fees or buyout costs.
- Liens: PACE financing places a property tax lien on your home, which can affect refinancing or selling.
- Loan fees: some solar loans include dealer fees built into the price; ask for the cash price and the financed price.
- Maintenance and production guarantees: who fixes problems, and what happens if the system underperforms.
- End of contract: renewal, buyout or removal.
Red flags
- Pressure to sign the same day.
- "Free solar" claims.
- Savings promises that do not match what the contract says.
- Requests to sign electronically before you have read the full contract.
Then compare proposals line by line with how to read a solar proposal.
Sources
- FTC: Solar power for your home, accessed November 2026
- IRS: FAQs on the modification of sections 25C and 25D under the One Big Beautiful Bill Act, accessed November 2026
Cost figures are national ranges from the sources listed above and in our solar cost guide, not a quote from FixFinch or any contractor.