The short answer
- Buying (cash or loan) still has the highest lifetime savings for most families.
- Leases and PPAs got relatively more attractive because providers can still claim a business tax credit.
- Read the escalator, the transfer terms and the total contract cost before signing anything.
The four ways to pay
Cash: you pay the full price and own the system outright. Loan: you own it and pay over time. Lease: a company owns the system and you pay a fixed monthly fee. PPA: a company owns the system and you pay for each kWh it produces. See the full comparison table.
How the tax credit change shifted the math
Until 2025, buyers got 30% back through the federal 25D credit. That ended for systems installed after December 31, 2025. Companies that own systems, meaning lease and PPA providers, can still claim the commercial 48E credit on qualifying projects placed in service by the end of 2027. A good provider passes part of that value to you through a lower rate.
A simple example
Imagine a $27,000 solar-plus-battery system that saves $2,300 in year one, with utility rates rising about 4% a year.
- Cash: about a 10-year payback, then roughly 15 years of nearly free power. Highest 25-year return.
- Loan: monthly payments may be close to your savings at first. Total cost rises with interest and any dealer fees.
- Lease/PPA: savings start on day one with $0 down, but you share the value with the provider for the whole term.
Watch for "dealer fees" in solar loans. Some low-rate loans quietly add 20–30% to the system price. Always ask for the cash price and compare.
The escalator clause
Many leases and PPAs raise your payment every year, often 0–3.9%. Over 25 years, a 2.9% escalator raises your payment by about 100%. Ask for a 0% escalator option and compare the total cost.
What happens when you sell
An owned system is part of the house. A lease or PPA must be transferred to the buyer, who usually needs to pass a credit check. Most transfers go fine, but it's one more step in a sale.
How to choose
If you have the cash or a fair loan and will stay seven or more years, buying usually wins. If you want immediate savings with no upfront cost and no maintenance responsibility, a well-written lease or PPA can be a good fit. We'll show you both side by side, in writing.