Solar Lease vs Buy Calculator

Ready to go solar but not sure whether to lease or buy? Our Solar Lease vs. Buy Calculator makes it easy to compare upfront costs, monthly savings, and long-term returns—helping you choose the right option for your home and budget.

Document
$

The total cost of the solar system in dollars, including installation and equipment.

The escaltor rate for tpo Payments.

Interest Rate: 5%

The annual interest rate for the loan, expressed as a percentage (e.g., 4.5%).

Months: 5

The “Loan Term” represents the number of months over which the loan is repaid. A longer term lowers monthly payments but increases total interest, while a shorter term results in higher monthly payments but less overall interest.

Select whether to apply the Investment Tax Credit (ITC), which reduces the cost by 30%.

Loan Monthly Payment

Initial TPO Payment

Total Lifetime Cost

Total Lifetime TPO Cost at %

2
Disclaimer: The calculations provided are for informational purposes only and are based on estimated values. Actual payments and terms may vary based on your specific financial situation and agreements. Please consult with a financial advisor or lending institution for precise terms and conditions.

As you can see from our calculator, purchasing solar panels often outshines leasing when it comes to long-term value. While a lease may offer lower upfront costs and simple monthly payments, it doesn’t grant you full ownership of your energy system. Buying means you’re building equity with every ray of sunshine that hits your roof.

Over time, the initial investment in a purchased solar system is recouped through substantial savings on your utility bills. Once the system is paid off, its electricity is essentially free. Additionally, owning your solar setup can increase the resale value of your home and insulate you against future energy price hikes. Leased systems provide lower annual energy savings and higher total cost of ownership and can make selling your home more difficult.

Buying solar panels is a strategy for maximizing your return on investment. It empowers you with long-term energy independence, allows you to benefit from tax incentives fully, and ensures that your solar savings stay in your pocket.