Solar Buying Options
This hub covers payment and financing options: cash, loan, lease, Power Purchase Agreement (PPA), and the newly popular prepaid lease and prepaid PPA. Compare how each works and which gives you the most value.
Browse Purchasing Options New: Buyer's Guide to Prepaid PPA's ➜
The Anatomy of a Solar Quote
Understand how your solar energy system cost breaks down.
Solar Buying Options
Top Visited Guide
The Buyers Guide to Prepaid PPAs
A prepaid PPA lets you pay upfront for decades of solar power instead of monthly bills, with no loan interest, annual escalator, or home lien. See how it compares with ownership and a traditional PPA, and when it makes the most sense.
Explore resources & guides
Each card breaks down purchase options with links to in-depth guides and comparisons.
System Ownership
Cash buyers own the system outright and keep any state and utility incentives. No lender, no lease payment, no third-party ownership clause complicating a future home sale.
➜ TPO vs Ownership Market Trends
➜ 8 Things I Wish I Knew Before Going Solar
➜ A Guide for Homeowners Adopting Solar
➜ Understanding Solar for Homeowners
How Solar Loans Work
With loan terms ranging from one year to 30 years, reamortization schedules tied to solar incentives, and interest rates that change constantly, solar financing gets complex fast.
➜ Solar Financing Explained
➜ Interest Rates & the Current Market
➜ Simple Solar Loan Calculator
➜ True Cost of Solar Power
Leases & PPAs
Little to no money down, but a third party owns the system — and the agreement transfers when you sell.
➜ How a Solar Lease Works
➜ How a PPA Works
➜ How Prepaid Leases and PPAs Work
➜ Leases & PPAs by the Numbers
Solar Energy System Cost Considerations
Maintenance, dealer fees, and permit costs are important considerations to ask your installer about as you review the system proposal.
➜ Realistic Solar Maintenance Costs
➜ Reroofing with Solar: Costs & Type
➜ Dealer Fees in Financed Systems
➜ Rising Cost of Utility Rates
Common questions about costs & financing
Most residential systems run $12,000 to $30,000 before incentives, depending on size and equipment. The more useful benchmark is cost per watt — national averages fall between $2.50 and $4.00 per watt installed.
With a loan, you own the system, claim any incentives, and add to your home's value, while spreading the cost over 10–25 years. With a lease or PPA, a third party owns the system, keeps the incentives, and the agreement has to be bought out or transferred to the buyer if you sell"
A prepaid PPA is a solar lease or PPA you pay in full upfront instead of monthly, but a third party still owns the system until an ownership transfer window opens, typically years 5–6. The upfront discount, usually 10–40% off, comes from the lessor passing along value from tax credits and depreciation they claim as the owner.
No. The 30% federal residential credit ended for systems installed after December 31, 2025. State, utility, and net metering incentives are still active but vary widely by location.
A dealer fee is a markup some lenders charge the installer, which gets built into the system price you pay. It can add 20–30% to the effective cost of a financed system versus paying cash.
The agreement transfers with the home, and the buyer must qualify to assume it. This can complicate or delay a sale, and some buyers will negotiate a price reduction or walk away entirely.
For most homeowners, payback falls in the 5–10 year range, calculated as net system cost divided by annual electricity savings. After payback, every remaining year of the system's 25–30 year life is net positive.
Solar purchasing terms & acronyms
Price Per Watt
the clearest way to compare proposals is by dividing the price of a system by its wattage
Net Metering
A billing arrangement crediting exported solar power against future usage.
Dealer Fee
A lender markup built into a financed system's price, often undisclosed.
Prepaid Lease/PPA
Paying a lease's full term upfront at a discount to skip monthly payments.
PPA
Power Purchase Agreement — you buy the electricity a third-party-owned system produces.
Section 48E Tax Credit
The commercial tax credit that leases and PPAs can still access through 2027.