Leasing vs Buying Solar Panels: Which Is the Smarter Choice for Homeowners in 2025?

Thinking about switching to solar? You’re not alone. Homeowners across the US are asking the same question: Is it better to lease or buy solar panels? With energy prices rising and incentives at an all-time high, understanding your financing options is crucial to maximizing your savings.

But how do you decide between leasing vs buying solar panels? What does each option mean for your monthly budget, long-term value, and peace of mind? Let’s break down everything you need to know so you can make the smartest solar decision for your home in 2025.

Leasing vs Buying Solar Panels: Fast Facts

• Leasing vs. buying solar panels: Leasing means you pay a fixed monthly fee to use a system owned by a third party; buying means you own your panels and retain all the savings.

• How much is a solar lease per month? The average US solar lease costs $50 to $120 per month, depending on your location and energy usage.

• Better to lease or buy solar panels? The answer depends on your financial goals, homeownership timeline, and desire for maintenance responsibility.

• Is it better to lease or buy solar panels? For most homeowners planning to stay long-term, buying offers better returns, but leases offer zero upfront cost and hassle-free energy.

What’s the Real Difference Between Leasing and Buying Solar Panels?

Let’s start with the basics.

Buying Solar Panels

Buying solar panels typically means paying for the system outright or financing it with a loan. You become the owner, benefit from all federal and state incentives, and see the full reduction in your energy bill.

Pros of Buying Solar Panels:

• Maximum Savings: You keep 100% of the power bill savings plus any solar renewable energy credits (SRECs).

• Increase Home Value: Homes with owned solar systems often sell for a higher price.

• Tax Incentives: Owners qualify for the full 30% federal solar tax credit, as well as state and local rebates.

• Long-Term ROI: Most buyers recoup their investment within 6–10 years, then enjoy free electricity for 10–20+ years after.

Cons of Buying Solar Panels:

• Upfront Cost: Expect to pay $15,000–$30,000 before incentives for an average system.

• Maintenance Responsibility: You are responsible for the upkeep, although warranties typically cover 20–25 years.

• Loan Interest: If you finance, interest rates (typically ranging from 2% to 99%, with a maximum of 6.99%) can add to the total solar cost.

Leasing Solar Panels

With a solar lease, a third-party company installs panels on your roof, and you pay a fixed monthly fee for the power they produce, usually at a rate lower than your old utility bill.

Pros of Leasing Solar Panels:

• No Upfront Cost: You can go solar for little to no money.

• Maintenance Included: The leasing company handles repairs and monitoring.

• Predictable Monthly Payments: Most leases offer set rates that rise only slightly over time.

• Immediate Savings: You’ll typically pay 10–30% less per month than your previous energy bill.

Cons of Leasing Solar Panels:

• No Ownership: You don’t own the system or benefit from the federal tax credit.

• Lower Home Value Impact: Leased systems don’t add to your property’s value like owned panels.

• Long-Term Savings: Over 20–25 years, you’ll usually save less than if you buy.

• Transfer Complications: Selling your home can be more challenging if the buyer assumes your lease.

How Much Is a Solar Lease Per Month in 2025?

The average monthly cost of a solar lease in the US is between $50 and $120, depending on system size, location, and local energy rates. In Florida, California, and Texas, leases are often at the lower end due to high sunlight hours and state incentives. Always ask for an itemized breakdown from your installer, and make sure you understand:

• The fixed monthly lease payment

• Any escalator clause (annual rate increases)

• The contract length (usually 20–25 years)

• What happens if you move or sell your home

Pro Tip: Compare your projected lease payments to your average energy bill over the next 20 years, and factor in expected utility rate increases for a fair comparison.

Is It Better to Lease or Buy Solar Panels in 2025?

Deciding if it’s better to lease or buy solar panels comes down to your personal goals:

When Leasing May Be the Right Choice:

• You don’t want to spend cash upfront or take out a loan

• Do you prefer a worry-free, maintenance-included agreement

• You may move within a few years and want flexibility

• Your tax liability is low (so you won’t benefit from the full federal tax credit)

• You live in a state with strong leasing options (California, Florida, New Jersey, New York)

When Buying or Financing Is Usually Better:

• You want the highest possible long-term savings and bill reduction

• You plan to stay in your home for 10+ years

• You qualify for the federal solar tax credit and local/state incentives

• You want to increase your home’s value for resale

• You’re comfortable with basic system maintenance

In most cases, if you have the funds or qualify for a low-interest solar loan, buying is the smarter investment over time. However, a lease still provides you with clean energy, predictable costs, and hassle-free maintenance from the very beginning.

Leasing vs Buying Solar Panels: Real Homeowner Scenarios

Scenario 1: The Busy Family

A Florida family wants to cut their monthly bill but doesn’t want to worry about panel maintenance or upfront costs. They opt for a solar lease at $69 per month, saving about 15% immediately. The system is monitored 24/7 by the provider, and repairs are included. When they sell their home five years later, the lease is easily transferred because the company offers buyer assistance.

Scenario 2: The Long-Term Investor

A Texas couple plans to stay in their home for 20+ years. They finance their solar panels, securing a 2.99% loan and claiming the full 30% federal tax credit. Their system pays for itself in 7 years, after which their electric bills drop to near zero, and their home value rises. Over 25 years, they saved $30,000 more than if they had leased.

Scenario 3: The Tax Credit Maximizer

A New Jersey homeowner chooses to buy panels outright, taking advantage of federal and state tax credits, SRECs, and a $5,000 local rebate. Their out-of-pocket cost is $12,000 for a $24,000 system. They recoup their investment in just over five years, and any future sale adds value to their property.

How to Make an Informed Solar Investment

To get a clearer picture of whether buying vs. financing solar panels is right for you, here’s a quick step:

• Go to Google and search “Project Sunroof.”

• It’s a free tool from Google that helps analyze your home’s suitability for solar energy.

• Check estimated savings and costs based on your location.

Important Update: Google’s Project Sunroof has not undergone significant updates since 2018. Although it still provides a general estimate, consulting local solar installers will offer more accurate and up-to-date pricing.

Final Thoughts: Leasing vs Buying Solar Panels in 2025

As solar technology continues to improve and prices drop, both leasing and buying solar panels are excellent ways to lower your electric bill and reduce your carbon footprint. The best option depends on your financial situation, the duration of your stay in your home, and whether you want to maximize savings or prioritize convenience.

Still unsure whether it’s better to lease or buy solar panels?

 Get a personalized quote from a local, reputable solar installer. They can provide side-by-side comparisons, monthly costs, savings, and long-term benefits tailored to your specific home.

If you have more questions about leasing vs buying solar panels, or if you'd like to see how much a solar lease costs per month in your city, please reach out to our expert team for a free, customized consultation. Take the next step to clean, affordable energy today!