☀️ Solar Lease vs Buy: 2025 Financial Comparison

⚠️ Important: The 30% federal tax credit for purchased solar expires after December 31, 2025. If you're considering buying, 2025 is the last year to claim the full 30% credit.

📌 The Quick Answer:

Buying (recommended in 2025): Higher upfront cost but you get the 30% tax credit, $25,000-$50,000 in 25-year savings, and increased property value. Best ROI.

Leasing: $0 down and maintenance-free, but you miss out on tax credits, get lower savings, and don't own the asset. Complicates home sales.

Bottom Line: If you can afford to buy (cash or solar loan), buying is significantly better financially. Lease only if upfront cost is a hard barrier.

🎯 Quick Decision Matrix

✅ Buy Solar Panels If:

You have good credit for a solar loan
You have cash or home equity available
You want maximum long-term savings
You plan to stay in your home 5+ years
You want to increase property value
You can claim the 30% federal tax credit

⚠️ Consider Leasing If:

You can't afford any upfront cost
You have poor credit
You don't have tax liability to offset
You may move within 1-3 years
You want zero maintenance responsibility
You're okay with lower overall savings

📊 Detailed Financial Comparison

Factor	💰 Buy (Cash/Loan)	📋 Lease	Winner
Upfront Cost	$15,000 - $25,000	$0 down ✓	📋
After 30% Tax Credit	$10,500 - $17,500 ✓	N/A (goes to lessor)	💰
25-Year Savings	$25,000 - $50,000 ✓	$10,000 - $20,000	💰
Annual ROI	10-18% ✓	5-8%	💰
Payback Period	6-10 years ✓	N/A (no ownership)	💰
Property Value Increase	+4-5% (~$15,000) ✓	None	💰
Maintenance Responsibility	Owner	Leasing company ✓	📋
Federal Tax Credit	30% through 2025 ✓	Company keeps it	💰
Selling Home	Easy (asset) ✓	Complex (buyer assumes lease)	💰
Monthly Payments	None (after payoff) ✓	$100-$150/mo (often with 1-3% annual escalator)	💰
System Ownership	You own it ✓	Company owns it	💰

* Based on 6-8 kW residential system. Savings depend on location, electricity rates, and system size. Sources: EnergySage, SolarReviews, Aurora Solar, NREL.

🔮 What Changes After 2025?

The solar landscape changes significantly in 2026:

30% ITC for purchases: Expires December 31, 2025
2026 and beyond: No federal tax credit for purchased residential systems (under current law)
Leased systems: Continue to benefit from 48E Clean Electricity ITC through 2027
Impact: After 2025, leasing becomes relatively more competitive due to narrower tax benefit gap
Action: If you're going to buy, 2025 is the optimal year

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