Solar Power Lease Vs Buy May 2026

When you purchase a system, you are the sole beneficiary of the Investment Tax Credit (ITC), which currently allows you to deduct 30% of the installation cost from your federal taxes. You also keep any local rebates or Solar Renewable Energy Certificates (SRECs).

You cannot take advantage of tax credits (e.g., you have low tax liability), you prefer a "hands-off" maintenance approach, or you want immediate savings without any upfront investment. solar power lease vs buy

A purchased system typically pays for itself in 6 to 9 years . After that, the electricity generated is essentially free for the remainder of the system's life (25+ years). When you purchase a system, you are the

A lease can be a hurdle during a sale. The buyer must agree to take over the lease and meet credit requirements. If they refuse, you may be forced to buy out the remainder of the lease to close the sale, which can cost thousands. Final Recommendation A purchased system typically pays for itself in 6 to 9 years

You have the capital (or qualify for a loan), you can benefit from a large tax credit, and you want to maximize the long-term value of your property.

About The Author

Murjani Rawls

Murjani is the senior writer, editor, and lead critic at Substream Magazine with a decade of expertise focusing on music, film, television, pop culture, and sports. He is also a food and culture reporter for NJ.com/The Star Ledger. Previously, Murjani was the inaugural culture editor at DraftKings Network/Vox Media, staff writer at The Root, and senior writer/editor at The Pop Break. He's also a photographer, podcast producer, and five-time self-published author. His advocacy has been featured in Time Magazine, Poynter, and Axios. He is a member of the Critics Choice Association and WGA East.