Should You Buy or Lease Your Solar Panels?

Everyone’s goals are different, the “right” financing option is different for each person. That’s why it depends on your particular financial goals. Please see the table below – the key differences between the two options to determine LEASE or BUY which option is best for you.



… are primarily interested in using electricity  generated from renewable resources and less concerned about maximizing the financial benefits of installing a solar panel system

… don’t want the responsibility for maintenance or repairs of your solar PV system

… don’t want to make a cash investment to buy the solar PV system outright

… don’t pay enough in federal or state taxes to benefit from the federal investment tax credits resulting from your investment in solar power system

… don‘t want to wait until the following year to receive the benefits of tax credits

… your credit score is 640+


The solar leasing company owns and maintains the solar PV system. Most solar leasing companies offer free online or mobile apps to help you track the performance of your PV system.


Solar Lease is generally for 20 year term


You do not qualify for any tax credits, depreciation, rebates or incentives


You can save between 20%-50% over the prices you pay your utility for electricity — depending on your location, state incentives, and property characteristics

… are primarily interested in maximizing the financial benefits of installing a solar panel system

… can benefit from reducing the amount of federal and state taxes that you pay have a tax liability that is larger than the amount of credits you could receive

… have the cash or can borrow to pay for the solar PV system

… are a business and can realize tax benefits through treating the system as a depreciable asset

… are planning to sell your home in a few years – and want to increase its value quickly (Note: The solar photovoltaic system would increase the value and make the property easier to sell)

Cash rebates and tax credits can reduce the cost of the system by up to 50%, also there are some incentive program can help you reduce the cost of the system. Most solar installers offer to manage the paperwork involved with rebates and incentives for you and adjust the purchase price to reflect the net amount.

Tax credits reduce the amount you owe for federal and state taxes. You can either reduce your tax withholding or claim the credit when you file your next tax return.


You own the system and responsible for the maintenance (Note: Solar PV systems are highly durable and require little or no maintenance.  Solar panels carry a 25-year performance warranty and solar inverters carry a 10-25 year warranty).


At The United Solar, solar loans are available for 10, 12, 15 and 20 year terms, with interest rates ranging from 1.99% – 6.99% with credit scores as low as 640+. 


You qualify for all available cash rebates, 30% Federal Investment Tax credits, State tax credits and other incentives like SRECs.