Solar Loan vs Cash vs Lease Comparator
Compare all three ways to go solar over 25 years — see true costs, savings, and net benefit for each option.
You pay the full net cost upfront after applying the federal tax credit. No monthly payments, maximum long-term savings.
Which Solar Financing Option Is Right for You?
Cash Purchase — Best Long-Term Value
If you have the capital, paying cash delivers the highest 25-year return. You own the system outright, claim the full 30% federal tax credit, and every dollar of electricity savings goes directly to your bottom line. Ideal for homeowners who plan to stay long-term and have sufficient tax liability to use the ITC.
Solar Loan — Own It Without Upfront Cost
A solar loan lets you own the system with $0 down. You still claim the federal tax credit (often used to pay down principal). Monthly loan payments are typically less than or close to your current electric bill, so the switch can be cash-flow neutral or positive from day one. Best for homeowners without liquid capital who want ownership benefits.
Solar Lease / PPA — Low Hassle, Lower Returns
With a lease or power purchase agreement (PPA), a third party owns the system and you pay a fixed monthly amount or per-kWh rate for the electricity. You do not claim the tax credit. Long-term savings are lower, and selling your home can be complicated by lease transfer requirements. Best for those who want solar benefits without any ownership responsibility.