Solar: buy, finance, or lease?
How you pay for solar matters almost as much as what you install. Buying outright, financing with a solar loan, and signing a lease or power-purchase agreement (PPA) lead to very different lifetime returns. Here's the trade-off, with 2026's tax rules in mind.
Key takeaways
- Buying with cash gives the best lifetime return and full ownership.
- A solar loan spreads the cost; you still own the system, but interest trims the return.
- A lease or PPA is $0-down, but the installer keeps the tax benefits and your savings are smaller.
- In 2026, the lease/PPA route is the main way to indirectly benefit from a (business) federal credit.
- Ownership keeps the long-run return, leases trade upside for convenience.
The three ways to pay
- Cash purchase: highest lifetime return and you own the system outright. Best if you have the capital and want maximum savings.
- Solar loan: you own the system and spread payments over years. Interest reduces the net return, but it preserves cash and you still capture the long-run savings.
- Lease / PPA: $0-down; a third party owns the panels and you pay for the power or rent the system. Lower savings, no maintenance burden, and the provider keeps the tax benefits.
Who keeps the tax benefits in 2026
With the residential 25D credit gone, a cash or loan buyer in 2026 gets no federal credit. A lease or PPA provider, however, can still use the business 48E credit through 2027, and may pass part of that value through as a lower rate. That makes lease/PPA the main indirect route to a federal benefit this year, at the cost of ownership and the biggest long-run savings.
How to decide
- Want the most savings: buy with cash, or finance if you'd rather keep the capital. Ownership wins over the system's 25-year life.
- Want simplicity and $0 down: a lease or PPA removes up-front cost and maintenance, accepting smaller savings.
- Compare the contract: read the escalator clause on a lease/PPA (annual rate increases) and the loan's interest and dealer fees before signing.
Frequently asked questions
Should I buy, finance, or lease solar?
Is a solar loan worth it?
See the numbers for your town
These ranges are national. Open a dashboard to see solar prices modeled for your town, with a live estimator and local factors.
Cost figures in this guide are modeled national ranges for general planning, not quotes. Local pricing varies, always get an on-site assessment from a licensed pro before you commit. Evergreen guide