Leasing vs. Buying Solar Panels: Which is Best?

Both options have their merits and drawbacks, and the right choice largely depends on your financial situation, energy goals, and long-term plans. This guide will help you make an informed decision — and introduce you to how Enact Solar can help simplify the process.

Leases typically last 15 to 25 years. During this period, the solar provider retains ownership of the equipment, handles installation, and often covers maintenance and repairs.

Leasing can be attractive to homeowners who want immediate savings with little or no upfront cost, but they do come with limitations — especially if you’re looking for maximum long-term benefits.

When you buy solar panels, you’re making an investment in your future — taking full ownership of your energy production and financial savings. Unlike leasing, purchasing a system means you control the equipment, benefit directly from available incentives, and build real value for your home or business. It’s an empowering decision that puts you in charge of how you generate and manage your electricity, offering long-term savings and energy independence. You have two main ways to do this:

• Upfront Payment: Paying for the entire system in cash, which maximizes your savings over time.
• Solar Loan: Financing the system through a loan, similar to a car or home loan, allowing you to spread payments over several years while still enjoying ownership benefits.

When you buy, you are entitled to all available federal, state, and local solar incentives — including the valuable Federal Solar Investment Tax Credit (ITC), which allows you to deduct a percentage of your installation costs from your federal taxes.

Ownership also means greater control: you can upgrade your system, relocate panels if you move, or even expand it if your energy needs change.

However, with great ownership comes some responsibility. You’ll need to manage maintenance and repairs (although many systems come with 20- to 25-year warranties), and the initial investment can be significant — unless you explore financing options like those offered through Solar Financing.

• Lower upfront cost: Many leases require $0 down, making solar accessible without the financial burden of a large purchase.
• Maintenance included: Providers typically handle any installation, maintenance, repairs, or replacements during the lease period.
• Predictable payments: Leasing agreements offer fixed monthly costs, simplifying budgeting.
• Quick entry into solar: Leasing removes many of the traditional barriers to adopting solar technology.

• No ownership benefits: You cannot claim federal tax credits, rebates, or incentives.
• Reduced long-term savings: Over the lifetime of the panels, leasing generally saves you less money compared to owning.
• Complicated home sales: If you sell your home, the new owner must assume the lease — which can deter potential buyers or complicate negotiations.
• Capped financial upside: Any increases in property value tied to the solar system belong to the leasing company, not to you.

Leasing can be a smart choice for those who prioritize low upfront costs and low-risk energy savings over maximum long-term financial return.

• Tax credits and incentives: Owners are eligible for the full 30% Federal Solar Tax Credit (as of 2025), along with potential state, local, and utility incentives.
• Greater long-term savings: Once the system is paid off, the electricity it generates is essentially free, maximizing your return on investment (ROI).
• Added property value: Studies show that homes with owned solar systems sell faster and for more money — a boost you can’t get through leasing.
• Energy independence: Full ownership puts you in control of your energy production and future upgrades, giving you more flexibility with system upgrades or removal.

• Higher upfront costs: Purchasing a solar system can range from $15,000 to $30,000 or more before incentives (depending on system size and location). Exploring solar financing options can help ease the initial investment.
• Maintenance responsibility: Although warranties cover most major issues, minor maintenance might fall to the homeowner.

Buying solar panels is ideal for those committed to long-term savings, maximizing investment, and achieving energy independence.

Deciding whether to lease or buy solar panels isn’t just about cost — it is about aligning with your long-term goals, lifestyle, and financial strategy. Both options offer unique advantages depending on your situation, but understanding the trade-offs is crucial. Before making your decision, take time to reflect on the following key factors that can impact your savings, home value, and overall energy future:

While the idea of buying solar panels is appealing for its long-term savings and ownership benefits, the initial investment can seem daunting. Fortunately, there are multiple financing options available that make solar ownership much more accessible than many people realize. Whether you want low-interest loans, want to leverage your home’s equity, or take advantage of government-backed programs, there are flexible solutions to fit a variety of budgets. Here are some of the most common and effective ways to finance your solar system:

• Solar Loans: Many lenders offer loans specifically for solar installations with flexible terms and competitive rates.
• Home Equity Loans or Lines of Credit (HELOCs): Use existing home equity to finance your solar purchase.
• PACE Programs: Property Assessed Clean Energy financing allows you to repay the cost through property taxes.
• Solar Incentives and Rebates: These can significantly offset the purchase price, sometimes reducing costs by thousands of dollars.

Exploring the various Solar Financing options available ensures that ownership is achievable for more homeowners than ever.

Enact’s cutting-edge platform offers transparent, side-by-side comparisons tailored to your home or business. Their solar experts evaluate:

• Incentives specific to your location.
• Loan options based on your financial profile.
• Savings projections over the short and long term.

Whether you’re considering solar for your residence or commercial property, Enact makes it easy to understand the full picture — so you can make a smart, financially sound decision that aligns with your goals.

Still not sure whether leasing or buying is right for you? Get a free, no-obligation quote today — and see how much you could save with a personalized solar plan from Enact.