Buy vs Lease vs PPA
Ownership matters. Buying (cash or loan) means the system is yours; leases and PPAs shift ownership and maintenance to a third party but usually include an annual price escalator. We do not claim one option is better — we show the numbers under your assumptions.
| Model | 10-year | 20-year | 25-year |
|---|---|---|---|
| Cash purchaseBest here | $1,752 | $32,278 | $51,253 |
| Solar loan | $102 | $19,302 | $38,277 |
| Lease | $10,428 | $24,551 | $33,390 |
| PPA | $8,710 | $21,460 | $29,847 |
Net position = cumulative utility-bill savings minus what you pay for the system under each model. Estimates only; assumptions differ from any real contract. This is not a recommendation of one model over another.
Cash purchase
Pros
- + You own the system outright
- + Lowest lifetime cost in most cases
- + No monthly payment or escalator
Cons
- − Largest upfront outlay
- − You handle maintenance and repairs
Solar loan
Pros
- + Own the system with little money down
- + Payments can be lower than the old bill
Cons
- − Interest adds to total cost
- − Dealer fees can inflate the price per watt
Lease
Pros
- + Little or no upfront cost
- + Installer handles maintenance
Cons
- − You do not own the system
- − Annual escalator can outpace savings
- − Can complicate a home sale
PPA
Pros
- + Pay only for power produced
- + No maintenance responsibility
Cons
- − You do not own the system
- − PPA rate escalator can exceed utility inflation
- − Long contract terms
Questions to ask before signing
- ✓What is the exact price per watt, in writing?
- ✓What export/net-metering rate applies to my utility?
- ✓Is there an annual escalator on my lease or PPA payment?
- ✓Who owns the system, and who claims any incentives?
- ✓What are the production guarantees and penalties?
- ✓Who handles maintenance, monitoring, and repairs?
- ✓What happens if I sell my home during the contract?
- ✓What are the total payments over the full term?
Read before you decide
These projections are estimates built from your inputs, not offers. Real leases and PPAs have specific escalators, buyout clauses, and transfer rules that materially change the outcome. Get every figure in writing and consult a qualified professional. This site does not sell leads or connect you with installers.