In 2025, the transition to solar energy is more appealing than ever. With rising utility bills, expanded tax credits, and growing climate awareness, homeowners are increasingly turning to solar panels as a smart long-term investment. But there’s one big decision that often causes hesitation: Should you lease or buy solar panels in 2025?
It’s not just about the dollars and cents—it’s about control, freedom, and the future value of your home. Whether you’re planning to stay for the long haul or sell in a few years, understanding how buying and leasing work can make all the difference. Let’s dive into what each option means and help you confidently make the right call for your situation.
Buying vs. Leasing Solar Panels: What’s the Difference?
When it comes to going solar, you have two primary options: buy the system outright (or with a loan) or lease it from a third-party provider. The difference lies in ownership, and that one factor affects everything else.
What It Means to Buy Solar Panels
Buying your solar panels—whether upfront with cash or through a loan—means you own the system. You get to claim the federal tax credit, enjoy the full benefits of energy savings, and even boost the resale value of your home. When you buy, the solar system becomes an asset. You reap the rewards of your investment and control what happens to the system long term.
What It Means to Lease Solar Panels
Leasing is more like renting your panels. A solar company installs and owns the system on your roof. In return, you pay a monthly fee to use the electricity it generates. The biggest perk? No upfront costs. But because the system isn’t yours, neither are the tax credits or long-term savings. You also might face challenges if you want to sell your home during the lease.
Cost Comparison: Upfront and Long-Term Savings
It’s true—solar panels can cost a lot upfront. A typical residential system can range from $20,000 to $30,000 before incentives. That’s why many homeowners explore leasing. But over time, ownership often turns out to be the more financially rewarding path.
Upfront Costs
If you pay in cash, you’ll take the biggest financial hit early—but you’ll also enjoy the biggest returns later. If you finance with a solar loan, most companies offer zero-down options, so you don’t need to pay anything upfront. Leasing also usually requires no money down, which makes it attractive for those who don’t want or can’t afford initial costs.
Long-Term Financial Benefits
The key difference comes with time. When you buy—especially with a loan—your monthly payments stay fixed. Once the loan is paid off, you enjoy years of nearly free electricity. Leasing, on the other hand, includes annual increases known as escalators. These typically raise your monthly payments by 2–3% every year, cutting into your savings.
Over 20 years, owning your system can save you tens of thousands of dollars. Leasing might still offer savings, but they’re significantly smaller, and you’ll never stop paying unless you buy out the lease.
Monthly Payments and Electricity Costs
It’s not just about how much you pay, but how you pay—and whether you can count on that payment to stay the same.
Fixed vs. Escalating Monthly Payments
Solar loans typically have fixed payments. That means if you borrow money to buy your system, your monthly bills won’t change for the life of the loan. Leasing works differently. Most lease agreements include an escalator clause, increasing your payment every year. That means your energy costs could start low but slowly climb, reducing your long-term savings.
Impact on Electricity Bills
With a purchased system, once you’ve covered the cost (either upfront or through loan payments), your electricity becomes essentially free. You only pay minimal fees for grid access. With leasing, you’re locked into monthly payments—often higher than loan payments over time—and you don’t own the energy you’re generating.
Tax Incentives and Solar Rebates
One of the biggest benefits of buying solar panels is access to valuable financial incentives.
What You Get When You Buy
When you own your solar system, you’re eligible for the 30% federal solar Investment Tax Credit (ITC). That alone could reduce your system cost by thousands of dollars. On top of that, many states offer additional rebates and incentives. You can claim them only if you own your system, not if you lease it.
What You Miss with a Lease
Leasing companies technically own the system on your roof, so they get the tax credit, not you. You miss out on the ITC and most state/local rebates. While some leasing companies promise lower monthly costs in exchange, the total value lost often outweighs the short-term affordability.
Maintenance and System Repairs
Worried about maintenance? Solar panels are more durable than most people think.
Who Handles Maintenance?
When you lease a system, the provider typically covers maintenance, which may sound like a perk. But in reality, solar panels need very little upkeep. And because leasing companies don’t always respond quickly to service calls, the “free maintenance” may not be as helpful as it sounds.
If you buy your system, you’re responsible for maintenance, but most systems come with warranties that cover issues for 10 to 30 years. Your installer should also include a workmanship warranty, offering extra peace of mind.
What If You Sell Your Home?
Thinking about moving in a few years? Your decision now could affect your resale experience later.
Selling a Home with a Purchased System
Studies show that homes with owned solar systems sell faster and for more money. One study from Lawrence Berkeley National Laboratory found that homes with customer-owned solar systems sold for a premium of about $15,000. Buyers love the idea of inheriting low electric bills without a contract.
Selling a Home with a Leased System
It gets trickier if you’re leasing. You have two options:
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Transfer the lease to the new owner (if they qualify).
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Buy out the lease to terminate the contract.
Both can work, but both can also complicate or delay a sale. Some buyers hesitate to take on someone else’s lease, and depending on your contract, buying out the lease early could cost more than your remaining payments. That’s why it’s critical to read the fine print before signing a lease.
Pros and Cons Summary: Lease vs. Buy
Let’s be real—there’s no one-size-fits-all answer. But here’s how the options compare:
Buying Pros:
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You own the system outright
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Eligible for all tax credits and rebates
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Adds value to your home
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Bigger long-term savings
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Stable, predictable costs
Leasing Pros:
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No upfront payment
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Minimal maintenance responsibilities
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Short-term savings possible
But the cons of leasing can outweigh the perks: no ownership, no tax incentives, escalating payments, and fewer resale benefits.
Actionable Tips Before You Decide
Before committing to any solar agreement, take these steps:
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Assess your long-term housing plans. Staying put? Buying is likely the better choice.
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Compare multiple quotes using a solar marketplace like EnergySage.
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Use a solar calculator to estimate savings in your ZIP code.
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Review the fine print of leases or loan terms for escalators, penalties, and service coverage.
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Ask your installer about warranties and support—not all companies are created equal.
Doing your homework now can save you thousands later.
FAQs: Leasing vs. Buying Solar Panels
Is it cheaper to lease or buy solar panels in 2025?
In most cases, buying is cheaper in the long run due to tax credits and greater energy savings. Leasing may offer short-term affordability but limited overall value.
Can I switch from a lease to ownership later?
Some leases offer buyout options, but they may come with hidden fees. Always ask about the buyout terms before signing.
Do solar panels still add value to homes if leased?
Not usually. Only owned systems significantly increase home value. Leased systems can even deter potential buyers.
What happens to my lease if I move?
You can transfer the lease or buy it out, but both can create complications during the sale process.
Are there states where leasing solar isn’t allowed?
Yes. Leasing and Power Purchase Agreements (PPAs) aren’t legal in all states. Check your state’s solar policies before choosing.
Final Verdict: Should You Lease or Buy?
Here’s the bottom line: Buying solar panels in 2025 is the smarter financial move for most homeowners. While leasing may work for those with no access to financing or plans to move soon, it comes with trade-offs that limit long-term value.
By purchasing—whether with cash or through a solar loan—you gain ownership, control, and the full economic benefits of solar. With incentives at their peak and electricity costs on the rise, the best time to go solar is now, and buying gives you the power to make it truly pay off.
If you’re ready to take the next step, start by comparing quotes in your area and exploring financing options. Solar energy is more than just a sustainable choice—it’s a smart one.
For more tips and information, check out our solar energy latest articles on our website and start planning your next home upgrade with confidence.
