Last reviewed: October 17, 2026.
This solar lease vs buy guide compares the main payment options in 2026. Buying means paying full price because the homeowner tax credit ended. Leasing can be cheaper upfront because the company that owns the panels can still claim a business tax credit. Which is better depends on your quotes, how long you will stay in the home, and your comfort with a long-term contract.
Solar lease vs buy: what changed in 2026
- Buying (cash or loan): the 30% homeowner credit (Section 25D) ended for systems placed in service after December 31, 2025 (Solar.com). A loan does not bring it back.
- Leasing or a PPA: the company that owns the system can still claim the 30% business credit (Section 48E) for residential systems placed in service before 2028, if construction began by July 4, 2026 (summary of the rules). Whether a lower price reaches you depends on the contract.
The three ways to pay
| Cash | Loan | Lease or PPA | |
|---|---|---|---|
| Upfront cost | Full price | Little or none | Little or none |
| Who owns the panels | You | You | The company |
| Long-term savings | Usually highest | Lower, because of interest | Usually lowest, but no upfront cost |
| Maintenance and repairs | Your responsibility, within warranties | Your responsibility, within warranties | Usually the company’s |
| When you sell the home | Panels go with the house | Loan may need to be paid off | Buyer must take over the contract, or you buy it out |
How to compare real quotes
- Put the purchase price, the loan terms and the lease or PPA payment into our calculator under “More options”.
- Check the lease or PPA escalator: how much the payment rises each year. Compare it with how fast you expect your utility rate to rise.
- Read what happens at the end of the term and if you sell the home early.
- Ask who handles repairs, roof work, and removal at the end of the contract.
Selling a home with leased solar
A lease is a contract that the next owner must agree to take over. Read our guide to selling a home with leased solar before you sign.
Estimate your own inputs with the solar panel cost calculator, and read how solar savings are calculated before comparing quotes.
This page is general information, not financial or tax advice. Ask a tax professional how these rules apply to you.
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Solar lease vs buy questions
- Should I lease or buy solar panels in 2026?
- Buying means paying full price, because the 30% homeowner tax credit ended for systems placed in service after December 31, 2025, and a loan does not bring it back. A lease can be cheaper upfront because the company that owns the panels can still claim the 30% business credit for residential systems placed in service before 2028. Which is better depends on your quotes, how long you will stay in the home and how comfortable you are with a 20-plus-year contract. Solar.com: the end of the residential solar tax credit
- What is the difference between a solar lease and a PPA?
- Both are third-party arrangements where a company owns the system on your roof. In a lease you pay a fixed monthly payment to use the panels. In a PPA you pay per kWh for the power the panels produce. In both cases the company owns the panels and is generally responsible for maintenance and repairs. Solar.com: how the 2026 credit rules change the math
- How do I compare a lease quote with buying?
- Put the purchase price, the loan terms and the lease or PPA payment into our calculator under "More options". Then check the escalator, how much the payment rises each year, and compare that with how fast you expect your utility rate to rise. Read what happens at the end of the term and if you sell the home early. How solar savings are calculated
- Is there still a solar tax credit in 2026?
- For homeowners buying their own system, no. The 30% Section 25D credit ended for systems placed in service after December 31, 2025. A company that owns a system on your roof can still claim the 30% business credit under Section 48E for residential systems placed in service before 2028, if construction began by July 4, 2026. Whether that lower price reaches you depends on the contract. Solar.com: the end of the residential solar tax credit