Leasing Solar Panels vs Buying. Best Option in 2022

What is Better: Leasing Solar Panels vs Buying Solar Panels

There are three basic types of solar panels that you can buy: cash, solar loans and power purchase agreements (PPAs). Each type of panel has their own pros and cons, but in general the PPA will provide the most financial benefit to you.

For an overview of leasing vs. buying a solar energy system, look at this overview of solar panels: The financial benefits of buying a home solar energy system with cash include: Higher monthly savings for homeowners.

The benefits of financing your solar system with a low-interest loan are that you’ll have a lower initial cost, and you won’t have to pay a monthly fee or be forced to overpay for services. These loans can be used to cover anything from installing a solar system to paying off a loan for a system you already have.

Significant long-term savings. Monthly utility bill savings, offset by a monthly loan payment. Loan payments get paid down and eventually disappear. The benefits of solar leasing or solar purchase agreements (PPA) include: Lower upfront costs than purchasing with cash.

The solar lease will be the responsibility of the leasing company, but monthly electricity bill savings and monthly payments for the lease that will offset the savings.

Owning Solar Panels

When you buy solar panels, there may or may not be a payment plan available. These panels may be subsidized through a government program for qualified home owners, or they may be sold at a reduced rate. Solar panel rebates are also common.

There is no question that solar panels are expensive, but it may be worthwhile considering that you’ll save money over the long term and lessen your energy bills by making them your primary source for electricity. 

So if your are buying the panels you also have to compare the options of paying cash vs purchasing the system using a solar loan.


While installing solar panels might be an expensive upfront investment, they are one of the best ways to create a sustainable energy source for your home. That’s because when you buy your solar panels outright with cash, you will not accrue interest on the payments, and will not have to make ongoing payments as long as your system remains in service.

Instead, you can begin “paying them back” by saving money on monthly utility bills. By not using the panels for an extended period of time, the panels can last for years, giving you a return on your investment.

Solar Loan

With a solar loan you can still be eligible for rebates and incentives even if you spread out the payments over the life of the loan. This will allow you to purchase your solar panels with the aid of your financial planner. The loans come in many varieties as well.

As with any loan, you will be charged interest over the course of the loan term. The exact amount of interest will vary depending on the specific loan terms and conditions. You may also pay a one-time cash discount for buying your system upfront, which is sometimes called the “soft loan” or “equity.

Getting a solar loan or a solar lease can be done in a variety of ways. The difference is that, with a loan, you own the system. You are able to make payments on your system with the loan, and you can also make improvements to your system throughout the duration of the loan. If you are interested in a solar loan, you will need to shop around for the best rates and terms.

Leasing Solar Panels

Solar leasing allows people to benefit from solar power without having to take on the initial cost. Solar panels can make the transition to solar energy even easier for some consumers.

Leasing solar panels is a popular option for consumers. While owning solar panels will get you the most bang for your buck in the long run, leasing them can save a lot of money in the short-run if you don’t want to own the equipment.

How Leasing Vs. Buying Solar Panels Affects Selling Your Home

If you plan to stay in the house for a few years after the financing is paid off, leasing may be a good option. That means that you will get to keep your roof for as long as you own the home. If you’re not sure if you’ll be staying in the house for the long term, however, then it may be better to buy your system rather than lease it.

A solar panel system will add a certain amount of value to your property, and that value increases with age. Even if you take it off the market now, you will probably have to pay to get it out, and then there will be storage costs. So, moving the system to a new home, or even relocating it from one area to another, could cost you money.

In fact, there is research out there on it. Here’s some of the findings: Potential buyers are willing to pay an extra $12,000-$15,000 for a home with just an average sized solar array, more with a larger array.

Each extra $1 in utility savings from your solar system can add a total of $20 to your home value. If your roof is getting ready to get some new panels, you can add these benefits to the list of reasons why your house is worth more than it was before.

You may decide it is in your best interest to move, and if so, you should plan on installing a solar system that takes into account your new location. You’ll want a good understanding of how much sunlight your property gets, and what the sunniest part of your new place is. It will also be important to determine if it’s worth the hassle of a move just to install solar panels on your roof.


Get a free consultation and a free quote when you decide to go solar with Measure Solar. Aside from the number of solar panels, we know you’ll have plenty of other questions about solar power. Measure Solar is happy to provide answers and make your switch to solar as easy and convenient as possible.

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Kyle Thumm

Solar & Marketing Entrepreneur who has been helping homeowners without a pushy sales pitch since 2019

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Kyle Thumm created Measure Solar to help homeowners get information about solar without the pushy & uncomfortable sales pitch.

Our mission is to help homeowners all over the country to receive education about the benefits and to make the switch to solar with someone that they can trust.

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