Owning -vs- Leasing

Are you considering a solar Lease or Power Purchase Agreement (PPA)?

So you've decided you want to take the step to save money with solar energy. Now you need to decide between Owning -vs- Leasing your solar system. It's a very big decision, and once the installation begins, you're locked in for the long haul, the good, the bad, and the ugly.

Before you decide on Owning vs Leasing, know all the facts. Spend time researching. The right decision will pay off, but the wrong one will end up costing you.

Get Estimate

Which one costs more?

Side by side comparison of an 8 kW system with 12,000 kWhs annual production.

$15,050

Own - Cash

Total cost after tax credit with a cash purchase.

$22,600

Own - 12 Year Finance

Total cost after tax credit with a 12 year financing program.

$34,350

Own - 20 Year Finance

Total cost after tax credit with a 20 year financing program.

$43,200

Lease/PPA- 20 Year Contract

Total cost based on a fixed 18¢/kWh rate with 0% annual increase.

$51,070

Lease/PPA- 20 Year Contract

Total cost based on a fixed 16¢/kWh with an annual rate increase of 2.9%

$95,230

No Solar

Estimated cost of not doing solar for the next 20 years. Utility rates increase an average of 5% annually. 

Owning -vs- Leasing - Pros and Cons

LEASING / PPA

OWNING

PROS:

  • $0 Down
  • Low monthly payment
  • 20 year equipment warranty
  • 10 year roof warranty
  • Can transfer to new owner

PROS:

  • $0 Down
  • Low monthly payment
  • 25 year equipment warranty
  • 10 year roof warranty
  • Can transfer loan to new owner
  • increases value of home
  • You own the system
  • You claim federal tax credit
  • Won't interfere in sale of home
  • Costs thousands less than lease
  • You get actually get a return on your investment.

CONS:

  • 20 year contract/commitment
  • Costs thousands more with no ownership
  • Can interfere with sale of home
  • Dependent on the stability of the leasing company

CONS:

  • Typically need to live in home 3+ years before starting to see a return on investment

LEASING / PPA

PROS:

  • $0 Down
  • Low monthly payment
  • 20 year equipment warranty
  • 10 year roof warranty
  • Can transfer to new owner

CONS:

  • 20 year contract/commitment
  • Costs thousands more with no ownership
  • Can interfere with sale of home
  • Dependent on the stability of the leasing company

OWNING

PROS:

  • $0 Down
  • Low monthly payment
  • 25 year equipment warranty
  • 10 year roof warranty
  • Can transfer loan to new owner
  • increases value of home
  • You own the system
  • You claim federal tax credit
  • Won't interfere in sale of home
  • Costs thousands less than lease
  • You get actually get a return on your investment.

CONS:

  • Typically need to live in home 3+ years before starting to see a return on investment

Check our Solar FAQs page for answers to more solar questions.

To see an Owning-vs- Leasing side by side comparison of your situation,
Contact us today!

Solar Web Lead (Residential)