Solar Lease vs Solar Loan
Two financing models for solar: a lease means a company owns the panels and you pay monthly rent; a loan means you own the panels and make loan payments, keeping the tax credit and all incentives.
Why It Matters
Owning via loan typically saves $10,000-20,000 more over 25 years than leasing because you keep the 30% federal tax credit and all production savings.
Related Tools
Related Terms
Solar Lease
A financing option where you pay a fixed monthly fee to rent a solar system, while a third party owns and maintains it.
Solar Loan
A financing product specifically designed for solar installations, typically offering 10-25 year terms. May be secured (using home equity) or unsecured, with rates from 3-9%.
Federal Tax Credit (ITC)
Investment Tax Credit allowing homeowners to deduct a percentage of solar installation costs from federal taxes. Currently 30% through 2032.
PPA (Power Purchase Agreement)
A financing arrangement where a third party owns the solar system and you pay for the electricity it generates.