Solar Lease vs Buy Calculator — 25-Year Comparison 2026
Compare solar lease vs buying in 2026 over 25 years. See total costs, savings and which option puts more money in your pocket.
How to use this calculator
- Enter the total purchase price of your solar system.
- Enter the monthly lease payment and annual escalation rate from your lease quote.
- Enter your current electricity rate and expected annual rate increases.
- Adjust the federal tax credit percentage (30% in 2026).
- See year-by-year cash flows and 25-year totals for both options.
Understanding your results
Solar purchase (cash or loan): You own the system, claim the full 30% federal tax credit, and keep all energy savings. After payback, electricity is essentially free. Adds value to your home.
Solar lease: The solar company owns the panels, installs them for free or at low cost, and charges you a monthly fee — typically lower than your current electricity bill. You don’t get the tax credit (the company does). After 20–25 years, you either buy the system at fair market value, have it removed, or negotiate a new contract.
The financial math: Most independent analyses show that purchasing solar (cash or loan) generates 2–3× more financial benefit over 25 years than leasing. The SEIA estimates that homeowners who buy solar save an average of $20,000–$40,000 over the system lifetime; lessees save $10,000–$15,000.
When leasing makes sense: If you cannot claim the federal tax credit (due to insufficient tax liability), if you cannot qualify for a solar loan, or if you plan to sell your home in 3–5 years, leasing can still make financial sense. However, leases complicate home sales — the new buyer must qualify to take over the lease or you must pay it off.
Frequently asked questions
Direct answers for US homeowners.
Related solar guides
In-depth sizing, cost, and payback articles — with state-by-state data.