Solar leasing: Rent the sun

Want to go solar but don't want to pay thousands upfront? Solar leasing might be your answer. Let’s break down everything you need to know about leasing solar panels for your home so you can decide if it's the right move for your family.

What is solar leasing: Panels without purchase

Solar leasing is like renting a car, but for solar panels. Instead of buying panels outright, a company puts their equipment on your roof, and you pay a monthly fee to use the power. The company owns and takes care of the system while you enjoy cleaner electricity.

When you sign a solar lease, you agree to monthly payments for 20-25 years. The solar company handles everything from permits to installation. Most lease payments start around $50-100 per month and include annual price increases of 1-3%, called escalators. For example, a $100 monthly payment with a 2.5% escalator would increase to about $103 in year two, $105 in year three, and so on.

Read also

Should you wait to go solar? Let's ask the experts

The leasing company retains ownership of the panels and is responsible for their performance. This means they monitor the system remotely and will send technicians to your home if production drops or problems occur. Most agreements include a production guarantee that ensures the system will generate a minimum amount of electricity. If it underperforms, the company typically credits your account or reduces your payment to compensate for the shortfall.

Upsides of solar leasing: What's in it for you

Solar leasing allows you to enjoy solar power without the traditional barriers to entry. Let's look at what makes leasing an appealing option for many families.

The biggest draw of solar leasing is that it costs little or nothing to get started. While buying solar panels outright can cost $15,000-$30,000, most leases require zero down or just a small deposit. This makes solar power possible for homeowners who want to go green but don't have a pile of cash sitting around.

With a solar lease, you don't need to worry about fixing or maintaining the system. The leasing company handles all repairs, panel cleaning, and system monitoring. If something breaks, it's their problem, not yours. Most leases include guarantees that the system will produce a certain amount of power, so the company is on the hook if performance drops.

Solar leasing gives you stable, predictable energy costs. Unlike regular power bills that change with the weather and rate hikes, your lease payment stays the same month after month or increases at a set rate that you agree to upfront. Knowing exactly what you'll pay for power helps you plan your household expenses with greater confidence.

Read also

Solar monitoring systems: All under control

Unlike buying panels, where it might take 5-8 years to break even, leasing puts cash back in your pocket immediately. Most people save 10-30% on their total energy costs from day one, which adds up to significant savings over time.

Downsides of solar leasing: Why it might not be your option

Like any financial arrangement, solar leasing has some downsides you should understand before signing. Let’s take a look at drawbacks to be aware of.

✗ Lower overall savings

While leasing saves you money right away, you'll save less in the long run compared to buying panels. When you own solar panels, once they're paid off, the electricity is essentially free. With a lease, you keep paying for the full 20-25 years. Over the life of the system, homeowners who buy their panels often save $20,000-$30,000 more than those who lease. If you plan to stay in your home for many years, this difference in total savings is worth considering.

✗ No access to tax incentives

When you lease, you don't get the federal tax credit of 30% of system costs or local rebates. These benefits go to the system owner – the leasing company. While they build some of these savings into your lease price, they also take their cut. Missing out on these incentives can mean thousands of dollars left on the table. The company gets the tax breaks, not you, even though the system is on your roof and generating power for your home.

✗ Home sale complications

Selling a house with leased solar panels can be tricky. The new buyer must either take over your lease or you'll need to buy out the remaining contract – which can cost thousands. This extra step can make your home harder to sell. Some buyers don't want to inherit a 20-year commitment, especially if the lease terms aren't great compared to current offers. While solar generally adds value to homes, a lease can sometimes turn away potential buyers.

✗ Limited control over system design

Read also

Do solar panels impact your home's value? You bet!

With a leased system, you have little say in panel brand, system size, or how panels are arranged on your roof. The leasing company makes these choices based on their bottom line, not your preferences or your home's look. If you care about your home's appearance or want specific equipment, this lack of control can be frustrating.

Perfect match: Profiles of ideal candidates

Not everyone is an ideal candidate for solar leasing. Your financial situation, home ownership plans, and energy needs all play important roles in this decision. Here are the prime candidates for solar leasing.

Homeowners with high electric bills: You live in an area where electricity costs more than the national average. In states like California, Hawaii, or New York where rates can exceed 25¢/kWh – solar leasing can create substantial monthly savings. The higher your current electric bills, the more financial sense leasing makes. If you're paying $150-300 per month for electricity, a solar lease could cut those costs by 10-30% from day one.

Homeowners without cash to invest: You don't have $15,000-$30,000 available for a purchase. Installing solar panels requires significant upfront capital if you buy outright. Leasing removes this barrier completely, usually requiring zero down payment. This allows you to allocate your savings or home improvement budget to other pressing needs like kitchen renovations, emergency funds, or college savings while still benefiting from clean energy and lower utility bills.

Read also

How much do solar panels cost to install? Up to you!

Homeowners wanting immediate savings: You prefer saving money from month one rather than waiting years for payback. Purchasing solar typically takes 5-8 years to break even on your investment. With leasing, your total energy costs – lease payment plus any remaining utility bill – should be lower than your previous electric bills starting immediately. For example, if your current electric bill is $200 monthly, a typical lease might cost $120 with a remaining utility bill of $40, saving you $40 each month from the very beginning.

Beyond leasing: Other ways to go solar

If you've decided solar leasing might not be your best choice, several other paths can still help you harness solar energy. Let’s see available options that can be the best fit for your specific needs.

Buying with cash

Read also

Solar panel costs in 2025: Prices & savings

Buying your solar system outright gives you the biggest long-term savings. You get all tax credits and incentives, and after the payback period of usually 5-8 years, the power is essentially free. For financially stable homeowners planning to stay put, this approach maximizes return on investment. Many homeowners prefer ownership because it adds to home value of about 4% according to studies and gives complete control.

Solar loans 

Read also

Is it better to buy or lease solar panels? Let’s compare

Solar loans offer a middle ground between leasing and cash purchase. You own the system and get all tax benefits while spreading payments over time. Many solar loans now have terms similar to leases, including zero-down options, but with the benefit of building equity from day one. With interest rates often between 3-6%, solar loans can be very attractive. Options include home equity loans, personal loans, and solar-specific financing through installers..

Solar power purchase agreements

Read also

Solar power purchase agreements: Sun without spending

PPAs are similar to leases but with a key difference: instead of a fixed monthly payment, you pay only for the power the system actually produces. This can be better if you're worried about system performance since you only pay for what you get. PPAs typically offer rates lower than utility prices, though savings may be smaller than with other options. Like leases, PPAs usually require no money down and include maintenance, making them another easy way to go solar with no upfront cost.

Community solar participation

Read also

Community solar: Shared sunshine

If your roof isn't good for solar or you don't want panels on your house, community solar is an option. You subscribe to a local solar farm and get credits on your power bill. There's no installation at your home, but you still support clean energy and save money. Community solar typically saves 5-15% on electricity costs. Most programs let you cancel if you move, avoiding the complications of selling a home with leased panels. For renters or homeowners with shaded roofs, this opens the door to solar benefits otherwise out of reach.

By comparing these options to your financial situation, home ownership plans, and personal priorities, you can decide if solar leasing or another approach better fits your needs. The key is making an informed choice based on a clear understanding of all your solar options.

Start saving money with solar panels!

Check what solar panels we have in stock or get a quote for a system from our engineer.

Shop solar panels

Julia Zaraeva

Author

Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.

More articles from this author