The decision to lease vs. purchase depends on your finances and your long-term goals—whether you are primarily motivated to maximize financial benefits or to reduce your emissions.
According to Energy Sage, the main practical difference between leasing and buying is ownership. If you buy a solar panel system, you own the system either outright (if purchasing with cash) or after repaying your solar loan. If you lease the system or sign a power purchase agreement (PPA), a third party owns the solar panel system.
This distinction impacts the cost, maintenance, terms, financial offsets, and savings/returns on the investment of your solar panel system. In addition, not all companies offer solar leases and/or PPAs—confirm that your chosen provider offers the financing option that you want.
Learn more about the pros and cons of buying and leasing on our Payment Options page. You can also use the Institute for Local Self-Reliance's Ultimate Solar Calculator to compare buying vs. leasing.