April 9, 2025

Is It Better To Lease Or Buy Solar Panels?

If you’re considering solar, one of the first decisions you’ll face is whether to buy your system or lease it. While leasing may seem like an easy, no-upfront-cost option, owning your solar system delivers greater financial benefits, flexibility, and long-term value.

At Renew Solar Services, we strongly recommend owning your system through a solar loan—and here’s exactly why.

1. Financial Benefits: Ownership Pays Off

✔️ Tax Credits & Incentives – When you own your system, you qualify for the 30% Federal Solar Tax Credit, plus New York state tax credits and rebates. Lease and PPA customers don’t receive these benefits—the solar company does.

✔️ Increased Home Value – Owned systems add value to your home, while leased systems may actually complicate the home-selling process.

✔️ Long-Term Savings – Solar loans offer fixed monthly payments and are fully paid off after the term ends. Leases often come with escalating payments and no end to monthly costs.

✔️ Transferable Loans – Most solar loans can be transferred to the new homeowner at no cost, while leases come with UCC liens and complicated buyouts.

💡 Bottom line: When you own, you save more and keep the benefits.

2. Control & Independence: Own Your Power

When you own your system, you’re in full control—no middlemen, no restrictions. But with a lease or PPA:

❌ You’re locked into a 20–25 year contract

❌ You have no say over repairs, upgrades, or service schedules

❌ You’re dependent on the leasing company’s responsiveness and policies

We’ve seen countless customers come to us after getting stuck with non-working leased systems and no accountability from their providers while still being billed every month.

💡 With ownership, you choose your service partner and control your energy future.

3. Hidden Costs of Leasing & PPAs

While leases and PPAs are marketed as “no maintenance,” the reality is often different:

❌ Slow or nonexistent service – Repairs can take months, while you continue paying your lease and your utility bill.

❌ Annual price escalations – PPA contracts often include 3–5% yearly increases, meaning your power costs go up every year.

❌ UCC Liens on Your Home – Lease and PPA companies place a lien on your home that must be paid off before you can sell. These buyout amounts are often shockingly high.

4. Solar Loans: The Best of Both Worlds

With a solar loan from a trusted bank or credit union, you get:

✔️ No upfront cost options

✔️ 10-, 15-, and 25-year terms to fit your budget

✔️ Tax credit eligibility

✔️ Full system ownership

✔️ No UCC lien or transfer issues when selling your home

✔️ Financing options for solar repairs and maintenance

💡 At Renew Solar Services, we help homeowners secure the right loan and avoid the headaches of leasing.

Why Renew Solar Services Recommends Ownership

✔️ More savings

✔️ More control

✔️ More value

✔️ Fewer headaches

When you own your system, you’re not just installing solar—you’re investing in energy independence, long-term savings, and property value.

📞 Talk to our team to learn more about owning your system the smart way.

📩 Request a consultation online today!