Solar lease vs buying: which costs less for you?
It depends on your full written terms—not the first payment.
With a lease, a provider owns the panels and you pay monthly, often with a yearly increase (an “escalator”). Buying—cash or loan—means you own the system and its upkeep. Use the calculator to see what a lease adds up to.
Grid Pros advisory team · Updated October 14, 2026 · General education, not a quote, tax or legal advice.
Lease escalator calculator
Find it in your proposal. 0 means a flat payment.
Paid over 25 years at 2.9%
$64,772
Last-year payment: $298/mo
Same payment, 0% escalator
$45,000
Difference: $19,772
| By year | Monthly then | Total paid |
|---|---|---|
| 5 | $168 | $9,537 |
| 10 | $194 | $20,540 |
| 20 | $258 | $47,878 |
| 25 | $298 | $64,772 |
Totals are lease payments only. They do not show savings, remaining utility charges, upgrades, transfer or buyout terms, warranties, or the value of owning.
Lease
Provider owns the system. Fixed monthly payment that may rise each year. Ask about transfer, buyout and end-of-term options.
Power purchase agreement (PPA)
Provider owns the system. You pay for the power it makes, per kWh, often with a yearly increase. Bills vary with output.
Buy (cash or loan)
You own the system and handle upkeep after warranties. A loan adds interest and fees. Read the loan term and any balloon or rate change.
See the cash, loan or lease guide
Have a lease or loan offer?
Bring it to a review. We compare the payment plus remaining utility charges with what you pay today. Sometimes staying with your utility is better.
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Checked October 2026. Outside sources set their own figures and may change.