August 24, 2026
Lease, loan or PPA: how to actually choose in 2026
What you are actually choosing between
A solar loan means you own the system. You finance the purchase, the payments eventually end, and the equipment is yours. A lease means the provider owns the system and you pay a fixed monthly amount to use it. A power purchase agreement means the provider owns the system and you pay per kilowatt-hour for the power it produces, usually at a rate below what your utility charges.
All three are legitimate. Which is best is genuinely situational, and any company that always recommends the same one is telling you about their business model rather than your roof.
The loan case
Ownership generally produces the highest lifetime savings of the three, for a simple reason: once the loan is paid off the payment stops and the system keeps producing. You also keep any state or utility incentives you qualify for as the owner.
The 2026 caveat is important. The federal residential credit that used to make ownership clearly tax-advantaged expired at the end of 2025, so a purchase or loan today carries no federal residential credit. That removes a chunk of what used to tip this decision toward owning.
A loan still makes strong sense if you plan to stay in the home long term and you want the asset. It makes less sense if your priority is the lowest possible monthly number from day one.
The lease and PPA case
Both are zero upfront cost, both put maintenance on the provider, and both typically run 20 to 25 years and transfer to a new owner if you sell. The difference between them is what you are paying for: a lease is a fixed monthly payment for the equipment, a PPA is a per-kilowatt-hour rate for the power actually produced.
The structural advantage in 2026 is that these are the only residential structures a federal credit still touches. Section 48E, the business credit, runs through the end of 2027, and because the provider owns the system, the provider claims it -- with the value reflected in the rate you are quoted.
The trade-off is real and worth stating: you do not own the asset, the payments do not end at a payoff date, and the agreement terms matter more than the headline rate. Some PPAs include an annual rate escalator. Read that clause rather than assuming, because it varies by provider and contract.
How we would frame the decision
If you want the asset and the long horizon, look hard at the loan. If you want the lowest entry cost and none of the maintenance responsibility, look hard at lease or PPA. If you are unsure how long you will be in the house, note that all three generally transfer -- the process differs by agreement, and we will walk you through yours.
Nothing here is a guarantee about savings, approval or a tax outcome, and it is not tax advice. Financing is subject to credit approval and final terms come from the lending or leasing partner, not from us. For anything tax-specific, talk to a qualified tax professional.
Common questions
Which solar financing option saves the most money?+
Ownership through a loan typically produces the highest lifetime savings, because the payment eventually ends while the system keeps producing. Lease and PPA trade some of that upside for zero upfront cost and no maintenance responsibility. The right answer depends on your bill, your tax position and how long you plan to stay.
Does solar financing transfer if I sell my home?+
In most cases yes, for all three structures. The exact process depends on your specific agreement, so we will walk you through the terms that apply to you rather than generalise.
Will applying affect my credit score?+
The initial look is a soft credit pull, which does not affect your score. If you move forward with a loan, a hard check may happen later for final approval, and we will tell you before it does.
Put all three structures next to your actual bill
Send us a recent utility bill and we will show you what loan, lease and PPA each look like for your property -- side by side, with the trade-offs stated plainly.