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Comparison

Solar Lease vs Buying Your System

Leases and PPAs remove upfront cost but also remove the 30% federal credit and can complicate a Texas home sale.

By USSolar.shop Editorial TeamReviewed by USSolar.shop Editorial TeamUpdated August 20267 min read

A lease or power purchase agreement puts panels on your roof with no money down. In exchange, a third party owns the equipment, claims the tax credit, and holds a contract that follows your home into a sale.

What you give up

The 30% federal credit goes to the system owner, not to you. Escalator clauses commonly raise your payment 1.9% to 2.9% per year, sometimes faster than local utility rates have risen.

The resale complication

Texas buyers must qualify to assume the lease, or the seller must buy it out at closing. Real estate agents in Austin and DFW routinely flag leased systems as a transaction risk, so read the transfer clause before signing.

When a lease is reasonable

If you have no federal tax liability to offset, cannot finance a purchase, and plan to stay in the home long term, a lease can still lower your monthly energy cost. Just compare the 25-year total, not the first-year payment.

Frequently asked questions

Sources

  1. Lawrence Berkeley National Laboratory — Tracking the Sun
  2. IRS — Residential Clean Energy Credit (Form 5695)
  3. DSIRE — Database of State Incentives for Renewables & Efficiency