Paying with cash upfront means you own your solar panels outright, so you benefit immediately from lower electricity bills each month. Any extra power goes back to the grid too. As the homeowner, you’re responsible for maintenance, repairs, and insurance. However, it requires saving a large portion of the total cost upfront. Full ownership also allows claiming incentives like tax credits.

• Immediate savings on electricity bills starts from day one of installation. As the owner, all power generated goes towards lowering your usage.
• Eligibility for valuable tax credits and deductions. As the legal owner, you qualify for the 30% federal solar tax credit.
• Independence and control over your energy. You’re in the driver’s seat to maintain the system as needed without relying on a third-party company.
• Ability to benefit fully from incentives like net metering over the long term. Power you don’t use gets credited back towards future bills at full retail rates.
• Panels potentially increase your home’s property value. Several studies show homes with solar sell for thousands more on average.

A loan lets you pay for the system over time, with predictable monthly payments similar to a car loan. Terms typically range from 5-20+ years at competitive interest rates. Homeowners maintain ownership and responsibility over the panels as with cash. It makes solar more affordable now by spreading costs into the future. Just be sure to understand loan terms and responsibilities.

• Affordable installment payments. Loans let you pay over time, usually 5-20 years, through lower monthly payments instead of one large lump sum.
• Access to savings now. Electricity cost reductions from solar start immediately versus waiting years to pay off an investment.
• Competitive interest rates. Rates for solar loans are usually on par or lower than other home improvement loans.
• Tax credits eligibility. As the legal owner, you typically qualify for federal and state solar tax breaks when filing.
• Full ownership and control. At the end of payments, you outright own your system with no ongoing third-party contracts or suppliers.

With the lease model, a solar company owns and maintains the panels on your roof. You agree to pay a fixed monthly fee, usually for 20 years, for access to solar-generated power. Less out of pocket upfront makes it appealing. But leases can lack benefits like incentives and you typically can’t buy the system after. Understanding terms is key.

• No large upfront costs. Leases eliminate thousands in cash expenses typically required for system purchase.
• Predictable energy costs. A fixed monthly payment locks in electricity rates below local utilities for 15-20 years.
• Worry-free maintenance. The leasing company handles any repairs, replacements, or inspections needed over time.
• Low commitment for those who may move. Leases typically allow home sale or transfers to new owners without penalty.
• Lower start-up barrier. Leases remove risk for those unable or unwilling to own such an asset outright at time of installation.

Under a power purchase agreement or PPA, a solar company installs panels and you agree to buy the solar energy those panels generate at a fixed monthly rate for 15-25 years. There’s no large upfront cost, and rates are usually below your regular utility rates. PPAs provide solar savings now while the company bears responsibilities. Clear terms protect both parties.

• No large upfront costs – PPAs eliminate thousands in cash required for system purchase at installation. Lower startup costs means greater access.
• Predictable monthly expenses – Payments are fixed in advance based on rates locked below prevailing local utilities for 15-25+ years. Budgeting is simplified.
• Access savings immediately – Electricity bill reductions start as soon as service begins through credits versus waiting years to pay off investments.
• Maintenance included – The solar company handles system repair, replacement, or insurance for equipment over time as part of the agreement.
• Ownership optional after agreement end – In some cases, homeowners may have the option to purchase the system at fair market value once the PPA expires after 15-25+ years.
• Qualify for available tax credits – While the equipment owner may claim credits, prevailing commercial rates passed to homeowners can boost savings even more on utility bills.