Owning -vs- Leasing
Are you considering a solar Lease or Power Purchase Agreement (PPA)?
Are you trying to decide between Owning -vs- Leasing? 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.
Know all the facts. Spend time researching. The right decision will pay off, but the wrong one will end up costing you.
Which one costs more?
Side by side comparison of an 8 kW system with 12,000 kWhs annual production.
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.
