Solar leases lure homeowners in with the promise of “no upfront costs” and guaranteed savings, but the fine print reveals a different story! Over time, leasing can cost more than buying, restrict your control, and lock you out of solar’s biggest financial benefits.Here are several common misconceptions about solar leases and the facts that clarify them:
🔹 Misconception 1: “Leasing is cheaper than buying.”
Reality:
Leases often come with annual payment escalators (typically 2.9%–3.9%), which erode savings over time. Ownership provides much better long-term savings because once the system is paid off, the energy is free — with no rising payments.
🔹 Misconception 2: “You still get the 30% federal tax credit with a lease.”
Reality:
You do not qualify for the 30% tax credit when leasing. The leasing company gets it because they own the system. Only owners receive the tax credit and other local/state incentives.
🔹 Misconception 3: “Leasing adds value to your home.”
Reality:
Leased systems can complicate home sales and don’t typically increase property value. Buyers must agree to assume the lease, which can be a dealbreaker. In contrast, owned systems are seen as a home upgrade.
🔹 Misconception 4: “A lease gives me battery backup.”
Reality:
Most leased systems are grid-tied only with no battery, meaning you’ll still lose power during an outage. Only ownership gives you the freedom to add battery backup and participate in grid programs like ConnectedSolutions or VPPs.
🔹 Misconception 5: “Leases are flexible and easy to cancel.”
Reality:
Solar leases typically last 20 to 25 years and include hefty early termination fees. You’re locked in even if you move or want to upgrade.
🔹 Misconception 6: “It’s maintenance-free, so who cares if I own it?”
Reality:
Most systems are very low-maintenance whether owned or leased. But when you own, you’re in control. With a lease, the company decides how and when issues are handled — and may delay service or pass along hidden fees.
Power Your Home and Your Future with LIGHTSMITH ENERGY
Going solar with LIGHTSMITH isn’t just about panels on your roof, it’s about taking control of your energy costs for good. Unlike renting or leasing, owning your system means:
✅ Slash your electricity bills for decades. No more unpredictable rate hikes.
✅ Lock in tax credits and incentives that put thousands back in your pocket.
✅ Boost your home’s value with an upgrade that pays for itself.
But we don’t stop there. With LIGHTSMITH’s smart battery storage, you can:
🔋 Store surplus energy to use when rates are high.
⚡ Stay powered through outages. No more worrying about blackouts.
💰 Earn cash by selling excess energy back to the grid (thanks to programs like ConnectedSolutions).
Best of all? You’re not just saving money; you’re building a cleaner, more resilient future. Every kilowatt you generate reduces reliance on fossil fuels and strengthens your community’s energy grid.
And with LIGHTSMITH, you get a local partner committed to honest pricing, top-tier equipment, and real results—not pushy sales tactics.
Ready to own your energy? Let’s make it happen. GET A FREE QUOTE with LIGHTSMITH LIGHTSMITHENERGY.COM
This is such a crucial article that more people need to read. When we looked into solar, the lease/PPA offers were pushed hard with the ‘free panels’ and ‘no upfront cost’ angle. It sounded too good to be true… and it was! Digging into the fine print revealed escalating payments, a 20-year contract that would complicate selling our house, and the fact that we wouldn’t get the 30% federal tax credit (the leasing company does). We ended up taking out a loan to purchase our system outright. Our electricity bill is now near zero, we own the assets, and the increase to our home’s value is ours to keep. Leases are a trap for the uninformed.
We were stuck in a 20-year lease and it was a nightmare when we tried to sell our house. The buyers’ lender almost killed the deal because of the lease. We ended up having to buy out the system for thousands just to close. ‘Free’ is the most expensive word in solar.
Don’t forget about the 30% Federal Tax Credit! With a lease/PPA, the leasing company gets that credit, not you. When you buy (even with a loan), you get that massive discount directly. That’s often the difference between a good and a bad deal. With the 30% Tax Credit coming to end end soon, it should spell the end for leasing solar companies too.
The key distinction everyone needs to understand: LEASE vs. LOAN vs. CASH PURCHASE. Leases and PPAs (Power Purchase Agreements) are where the traps are. A loan to BUY the system is far better; you get all the tax credits and the equity, without the long-term liability.
Great article. Another point to add: always get multiple quotes. Any reputable solar installer should be willing to provide a cash price and explain the ROI of a purchase vs. a lease. If they only push the ‘free panels’ or ‘no money down’ lease, run.
Free panels’ means you’re just switching from one bill (the utility) to another (the lease company), but without the upside of owning the asset. It’s the worst of both worlds.
Totally agree! Solar Leases are traps!
太阳能租赁看起来免费，其实隐藏费用多，最后花得更多，不划算！
这个“免费安装太阳能板”的租赁陷阱值得我们高度警惕。虽然看起来零首付很吸引人，但租赁合同通常意味着用户无法申请联邦或州的税收抵免，且月供每年可能自动上涨。随着时间推移，总支出可能远高于直接购买。签约前务必阅读合同条款，包括付款上升机制、房屋出售时的转让责任、设备维护义务及系统实际发电量的保证。建议认真比较“租赁”与“购买”选项，选择最能保护自己长远利益的方案。