Solar Lease vs Buy Calculator
Compare the total cost and net savings of leasing a solar system versus buying it outright, including tax credits, escalators and degradation over the term.
Should You Lease Or Buy Solar Panels?
Enter your system size, electricity prices and either purchase or lease terms. The calculator projects bill savings and net financial benefit for each option.
Solar Lease vs Buy Estimator
Buying costs more upfront but usually saves more over time.
Understanding Lease vs Buy
Key concepts for solar finance
Bill Savings
Savings = production ร grid price, rising with price escalation and falling with panel degradation.
Buying
Net cost = system cost ร (1 โ tax credit) + maintenance. You keep all savings afterwards.
Leasing
You pay a fixed monthly amount, usually with a yearly escalator, and the company owns the system and incentives.
Net Benefit
Net benefit = bill savings โ what you pay. Compare both across the same period.
Typical Solar Costs
Approximate US ranges. Check local quotes and current incentives.
| Item | Typical Range | Typical Term | Notes |
|---|---|---|---|
| Installed cost | $2.50 โ $3.50 per W | โ | Before incentives |
| Federal tax credit | Varies by law | Owner only | Check current rules |
| Lease payment | $80 โ $180 / month | 20 โ 25 years | Often with escalator |
| Production | 1,100 โ 1,600 kWh/kW/yr | โ | Location dependent |
| Degradation | 0.4% โ 0.8% per year | โ | Panel warranty |
| General Pattern | Buy: higher savings | Lease: low upfront | Compare 20-year result |
Solar Lease vs Calculator FAQ
Answers to common questions about this calculator.
Buying usually delivers greater long-term savings if you can pay or finance upfront and use available incentives. Leasing suits those who want minimal upfront cost.
The leasing company typically claims it, not you.
No. If you finance a purchase, interest will reduce the net benefit.
The buyer may need to assume the lease or you may need to buy it out, so read the contract carefully.