Solar Loans vs Leases: Which Is Right for You? (2026)

Solar loans let you own your system and claim the 30% federal tax credit. Monthly payments are often lower than your previous electric bill. After the loan is paid off, you enjoy decades of free electricity. Ownership also increases your home's resale value by an average of $15,000-$25,000.

Solar leases require $0 down and no maintenance responsibility. You pay a fixed monthly fee that's typically 20-30% less than your current electric bill. However, the leasing company owns the system and keeps the tax credit. Lease terms typically run 20-25 years with annual escalators of 1-3%.

Over 25 years, a solar loan typically saves $30,000-$50,000 while a lease saves $15,000-$25,000. The difference comes from tax credit ownership, no ongoing payments after loan payoff, and home value increase. Loans have higher upfront financial commitment but significantly better long-term returns.

Owned solar systems increase home value and make properties more attractive to buyers. Leased systems can complicate sales because the new buyer must qualify to assume the lease or you must buy out the remaining term. Approximately 80% of real estate agents report that owned solar is easier to sell.