You have the capital (or qualify for a loan), you can benefit from a large tax credit, and you want to maximize the long-term value of your property.
When you purchase a system, you are the sole beneficiary of the Investment Tax Credit (ITC), which currently allows you to deduct 30% of the installation cost from your federal taxes. You also keep any local rebates or Solar Renewable Energy Certificates (SRECs).
Because the provider owns the equipment, they are responsible for monitoring and maintenance. Most leases include a performance guarantee , ensuring the system produces a specific amount of power or you receive a credit. 3. Long-Term Return on Investment (ROI) solar power lease vs buy
While you save money from day one, those savings are smaller. Most leases include an annual price escalator (often 1–3%), meaning your monthly payment increases over time, which can erode savings if utility rates don't rise as quickly. 4. Impact on Home Resale
A purchased system typically pays for itself in 6 to 9 years . After that, the electricity generated is essentially free for the remainder of the system's life (25+ years). You have the capital (or qualify for a
You cannot take advantage of tax credits (e.g., you have low tax liability), you prefer a "hands-off" maintenance approach, or you want immediate savings without any upfront investment.
The leasing company acts as the owner, so they claim the 30% tax credit and any state incentives. In exchange, you pay a fixed monthly "rent" for the equipment, which is usually lower than your previous utility bill. 2. Maintenance and Performance Because the provider owns the equipment, they are
A lease can be a hurdle during a sale. The buyer must agree to take over the lease and meet credit requirements. If they refuse, you may be forced to buy out the remainder of the lease to close the sale, which can cost thousands. Final Recommendation