Finance tool

Loan vs. Lease vs. Cash

Same system, three ways to pay, 25-year totals side by side. Use the cash price from a real quote — and if the financed price is higher than the cash price, that spread is a dealer fee.

Cash

$22,000

25-year total cost

paid upfront

You own the system

No federal credit applies for homeowner purchases after 2025.

Loan

$36,710

25-year total cost

$204/mo

You own the system

Interest raises total cost; you still own the system and any home-value uplift.

Lease / PPA

$51,817

25-year total cost

$120/mo (escalating 2.9%/yr)

You never own the system

25 years of escalating payments; the leasing company owns the system and its incentives.

Lease total assumes a 2.9% annual payment escalator over 25 years. Ownership also carries the home-value uplift (see the Home Value Estimator) and, for post-2025 purchases, no federal credit — while leasing companies may still monetize the separate commercial credit on the system they own.

The decision logic

The full comparison — who captures incentives after 2025, what leases do to home sales, when each option wins — is in How to Pay for Solar. For decisions that touch home equity or retirement cash flow, consider a financial advisor via AdvisorWorld alongside DOE guidance.