Solar lease vs. buy in 2026

The federal credit ended only for homeowner-owned systems, so many installers now promote leases and power purchase agreements (PPAs). With those, a company owns the panels on your roof and may still be able to claim a federal business credit for a limited time. Ask the provider whether the system qualifies, how that credit is reflected in your price, and check current IRS guidance — the deadlines for these business credits are set by federal law and are tightening.

	Buy (cash or loan)	Lease / PPA
Upfront cost	High, or financed with a loan	Often $0 down
Federal credit in 2026	$0 for the homeowner	May be claimed by the owning company
Long-term savings	Usually highest if the price is fair	Usually smaller; depends on the price escalator
Maintenance	Your responsibility (warranties help)	Usually handled by the company
Selling your home	You sell a system you own	Buyer must qualify for and take over the contract

Before signing a lease or PPA: check the annual price escalator, the contract length, what happens if you sell, and who pays to remove and reinstall panels if your roof needs replacing.

This calculator models a cash purchase. To evaluate a lease or PPA, compare its monthly payment and escalator against your current bill.

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