Solar loan vs solar lease comparison: full guide for homeowners (2025)
Solar loan vs solar lease comparison is one of the most important questions for homeowners considering solar. Both options can offer lower energy bills, but the long-term outcomes are very different. This guide summarizes the key differences, risks, and benefits side by side—and links to two in-depth articles that dive into each option.
Quick overview
- Solar loan: You finance and own the system. You keep incentives, control service, and build long-term value. Learn more in our full article here.
- Solar lease (PPA): You rent the system. The company handles maintenance and performance, often with $0 down. Learn more in our lease-focused article here.
Side-by-side comparison table
| Factor | Solar Loan | Solar Lease (PPA) |
|---|---|---|
| Ownership | You own the system after payoff | You never own the system |
| Incentives | You keep the 30% tax credit + local incentives | Leasing company keeps incentives |
| Upfront cost | May require good credit or down payment | Often $0 down, easier approval |
| Maintenance | Homeowner responsibility | Handled by leasing company |
| Performance guarantees | No guarantee, production risk on you | Often guaranteed by lease provider |
| Selling your home | Buyer can assume loan or you pay off; adds value | Buyer must assume lease or you buy out contract |
| End of term | Owned system keeps producing energy | Must renew, buy out, or remove system |
When a loan makes more sense
If your goal is long-term savings, higher home value, and full control over your system, a solar loan is usually the stronger choice. You’ll also benefit from the 30% federal tax credit and local programs, which leases don’t offer to homeowners.
When a lease makes more sense
If you want solar without upfront cost, prefer a hands-off experience, or have lower credit, a solar lease may be the easier path. Included maintenance and performance guarantees make it simple and predictable.
Bottom line
Both options can lower your electric bills. The right choice depends on your financial situation, how long you’ll stay in your home, and whether you want to own or simply rent the solar benefits. Explore both detailed guides below:
