Enter Your Solar Details

System Size (kW)

Typical residential systems are 6-12 kW

Total System Cost ($)

Cost if purchasing the system

Current Monthly Electric Bill ($)

Current Rate (¢/kWh)

Annual Rate Increase (%)

Monthly Lease Payment ($)

Quoted lease payment from provider

Annual Lease Escalator (%)

Lease Term (years)

Federal Tax Credit (%)

Only applies to purchase option

Lease vs Purchase Comparison

Analyzing your options...

Purchase Wins!

Based on your inputs, purchasing saves you more money over 25 years

💰 Solar Purchase

Total 25-Year Cost: $18,000

Total Savings: $45,000

Monthly Payment: $0 (after payoff)

Ownership: You own the system

📋 Solar Lease

Total 25-Year Cost: $42,000

Total Savings: $21,000

Monthly Payment: $125-180

Ownership: Lease company owns

Detailed Financial Analysis

Purchase Advantage

$24,000

More savings vs lease

Break-Even Point

7.2 years

When purchase pays off

Lease ROI

-2.1%

Annual return on lease

Purchase ROI

12.8%

Annual return on purchase

Enter your solar system details to see a comprehensive comparison between leasing and purchasing solar panels for your home.

Understanding Solar Leasing

Solar leasing allows you to install solar panels with little to no upfront cost. You pay a monthly fee to use the system, but the leasing company owns it and claims the tax benefits.

Purchase vs Lease Comparison

Purchasing typically offers better long-term value and tax benefits, while leasing provides immediate savings with no upfront investment. The best choice depends on your financial situation.

Key Factors to Consider

Consider your available cash, tax liability, long-term plans, and desire for ownership when choosing between lease and purchase options for your solar installation.

Lease Escalators

Most solar leases include annual payment increases (escalators) of 2-4%. This means your lease payment will grow over time, while purchased systems have fixed costs.

Home Value Impact

Owned solar systems typically increase home value, while leased systems may complicate home sales. Buyers must qualify to assume the lease or you may need to buy it out.

Making the Right Choice

Use our calculator results along with your personal financial goals to make an informed decision. Consider consulting with solar professionals for personalized advice.

Solar Lease Calculator