Is it better to lease or buy solar panels?

Buying solar panels is generally better for long-term savings because you own the system, qualify for the 30% federal tax credit, and increase your home value. Leasing offers lower upfront costs and no maintenance responsibility but provides less total savings over time and may complicate home sales.

What is the break-even point for buying solar panels?

The break-even point for purchasing solar panels typically ranges from 6 to 10 years, depending on system cost, local electricity rates, available incentives, and energy production. After the break-even point, you continue saving on electricity for the remaining 15-20 years of the system's lifespan.

Does a solar lease save money compared to my current electricity bill?

A solar lease can reduce your monthly electricity costs by 10-30% compared to your current utility bill, depending on the lease terms and your energy usage. However, lease payments typically increase annually (usually 2-3%), which may reduce savings over time compared to purchasing a system outright.

Solar Lease vs Buy Calculator

Compare the total costs and savings of leasing versus purchasing solar panels to make the best financing decision for your home.

System & Energy Details

System Size (kW) 8 kW

3 kW25 kW

Current Monthly Electric Bill $180

$50$600

Electricity Rate (¢/kWh) 16 ¢/kWh

8¢40¢

Annual Electricity Rate Increase 3.0%

0%7%

Financing Details

Purchase Price ($/watt) $2.80/W

$1.50$4.50

Federal Solar Tax Credit 30%

0%30%

Lease Monthly Payment $120

$30$400

Lease Annual Escalator 2.5%

0%5%

Lease Term (Years) 20 years

10 yr25 yr

Total Cost of Leasing

over 20 years

Net Cost of Buying

after tax credit & savings

Net Savings (Buy vs Lease)

over analysis period

Lease Scenario

Monthly Payment (Year 1) $0

Monthly Payment (Final Year) $0

Total Lease Payments $0

Electricity You Still Pay Utility $0

Total Out-of-Pocket $0

System Ownership at End No

Purchase Scenario

Gross System Cost $0

Federal Tax Credit -$0

Net System Cost $0

Estimated 25-Year Energy Production Value $0

Net Cost After Energy Savings $0

System Ownership at End Yes ✓

Break-Even Year

—

when buy cumulative savings exceed cost

25-Year ROI

—