Solar Lease vs Loan vs PPA: What Homeowners Should Know
Three structures dominate residential solar: lease, loan, and PPA. They differ on one axis that drives everything else — who owns the system on your roof.
The comparison
| Factor | Loan (you own) | Lease | PPA |
|---|---|---|---|
| You pay | Fixed loan payment | Fixed monthly rent | Per-kWh rate for output |
| Tax credit goes to | You | The lessor | The provider |
| Maintenance | You (via warranties) | Provider | Provider |
| Home sale | Asset — generally adds value | Buyer must qualify & assume | Buyer must qualify & assume |
| Escalator risk | None | Often 1–3%/yr | Often 1–3%/yr |
The honest takeaways
- Ownership (cash or loan) wins on lifetime economics for most homeowners who can use the tax credit.
- Leases/PPAs trade upside for zero-maintenance convenience — and their escalator clauses can erode savings by year 10–15.
- The home-sale friction is real: lease assumptions kill or delay deals, and buyers' agents know it.
Already stuck in a lease or PPA?
Buyouts, transfers, and servicing disputes have become their own category of homeowner problem — especially where the original provider has gone out of business. Our Solar Relief service reviews lease/PPA situations and connects you with companies that handle exits, buyout analysis, and system takeover. Start at the Solar Relief hub.
Frequently asked questions
Is a solar lease bad for selling my home?
It adds friction: the buyer must qualify for and assume the lease. Owned systems generally help sales; leased systems can delay or complicate them.
Can I buy out my solar lease?
Most leases include buyout windows priced off remaining payments or fair market value. Getting the buyout schedule in writing is step one of any exit analysis.