Solar Lease vs. Buy vs. Loan: Which Fits Your Home?

With cash, you pay for the system directly and take on the ownership responsibilities described in the purchase and service documents. With a loan, you buy the system using borrowed money and repay the lender under a separate schedule. Ask for the cash price, financed amount, interest rate, fees and total scheduled payments. A small monthly payment does not tell you the total cost or show whether the loan requires a later lump payment. Read the loan documents together with the equipment proposal so the two describe the same project.

A lease generally sets payments for use of the system; a PPA bases charges on the electricity it produces at the contract rate. Ask how either payment can change, what happens when production differs from the proposal and which maintenance tasks belong to you. For every payment route, ask for solar-only and battery options with clear equipment lists. PG&E still bills for utility service under its applicable tariff. Read the PG&E Net Billing (NEM 3.0) Explained for Solar Homeowners guide alongside the proposal rather than treating a solar payment as your entire electricity expense.

Check the financing illustration for any payment that assumes you will apply a new homeowner federal credit to the loan. If your installation finishes in 2026, ask for a schedule that removes that assumption. Carrying forward an unused credit already earned on a 2025-completed installation is different from earning one on new work. Keep the completion date and the claimed credit's origin clear in your records. A salesperson's statement that paying early preserved eligibility does not match the IRS completion rule.

Leased and PPA systems have a different federal framework. The company that owns eligible equipment can claim the Section 48E business credit. Solar placed in service after December 31, 2027 is excluded unless construction began by July 4, 2026, a date already past as of this guide's October 29, 2026 check. Qualifying timely projects have a four-calendar-year continuity safe harbor; batteries are exempt from the solar cutoff. These are company-side rules, not a homeowner credit or proof of a lower lease payment. Compare the written offer without assuming that the company passes a particular benefit through.

Read the transfer clause and ask the provider to walk through a hypothetical sale. Does a buyer need approval to assume the agreement? What happens if the buyer declines? Who supplies documents, and what charges or deadlines does the contract specify? For a financed purchase, ask the lender what a sale means for the outstanding balance and any security interest. These are questions about your particular documents, not universal outcomes. Save the provider's written explanation with the agreement and ask where each requirement appears in the signed terms before committing to the project.

Keep ownership paperwork separate from utility tariff status. For an existing PG&E NEM 1.0 or NEM 2.0 system, the confirmed legacy term is 20 years from interconnection, tied to the system; a buyer inherits the remaining years. That does not restart the clock or erase a financing obligation. For a new project, do not assume buying instead of leasing gives access to legacy NEM. Read the utility paperwork and the ownership contract separately, then keep both available for a future buyer who needs to understand the equipment, remaining payments and billing arrangement.