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Get a Free QuoteBoth Propel and solar leases offer $0 down solar with no upfront cost. But the 25-year financial outcomes are dramatically different. This analysis compares every dimension: total cost, ownership, escalators, home value impact, and when each option wins.
Quick Answer
Propel saves more than a solar lease over 25 years for most qualifying homeowners. While leases start with lower monthly payments ($130-$180 vs $230-$270), their 1.99-2.99% annual escalators push total 25-year cost to $60,000-$72,000. Propel's fixed payments total approximately $69,000, but you own the system at year 5, adding $15,000-$25,000 in home equity. The net financial position with Propel is approximately $20,000-$30,000 better. Leases win on accessibility: lower credit requirements, nationwide availability, and full-term maintenance coverage.
Propel Wins
Total cost, ownership, home value, escalators
Lease Wins
Accessibility, maintenance, initial payment
Net Result
Propel better by $20K-$30K over 25 years
Both Propel and solar leases are forms of third-party ownership (TPO). In both cases, a company or investor owns the solar system on your roof and you make payments for the electricity it produces. The critical differences are what happens over time: the ownership path, the payment structure, and the long-term financial outcome.
The fundamental difference is ownership trajectory. Propel is designed to transition the system to you. A lease is designed to keep the system with the leasing company. Everything else, from escalators to home sale impact to long-term savings, flows from this core structural difference.
The single most important difference between Propel and a solar lease is the escalator. Most solar leases include an annual payment increase of 1.99% to 2.99%. This seems small, but compound growth over 25 years is dramatic.
| Year | Propel Monthly | Lease (1.99%) | Lease (2.99%) | Lease (2.99%) Cumulative |
|---|---|---|---|---|
| Year 1 | $250 | $150 | $150 | $1,800 |
| Year 5 | $250 | $162 | $169 | $9,560 |
| Year 10 | $250 | $179 | $196 | $20,800 |
| Year 15 | $250 | $197 | $227 | $34,200 |
| Year 20 | $250 | $218 | $263 | $50,200 |
| Year 25 | $250 | $240 | $305 | $69,300 |
Notice the crossover point. A lease starting at $150/month with 2.99% escalation crosses the Propel fixed $250/month payment around year 17-18. After that, the lease payment is higher every single month, and climbing. By year 25, the lease payment exceeds Propel by approximately $55/month.
But the crossover point does not tell the full story. The cumulative total matters more. Over 25 years, the 2.99% escalating lease totals approximately $69,300. The fixed Propel payment totals $75,000 ($250 x 300 months). Lease appears cheaper by $5,700 in raw payment totals.
However, at year 25, the Propel homeowner owns a solar system that is still producing electricity. Even at 85% of original output, the system has a fair market value of $5,000-$10,000 and produces free electricity worth $1,000-$2,000/year. The lease customer owns nothing. Factoring in the asset value and ongoing free electricity, Propel's total financial position is approximately $20,000-$30,000 better over the system's remaining life.
Not all leases have escalators. Some lease providers offer 0% escalator options, though these come with higher starting payments. If you are comparing to a specific lease offer, check the escalator rate carefully. A 0% escalator lease at $200/month is a fundamentally different comparison than a 2.99% escalator lease at $150/month.
| Category | Propel | Solar Lease | Winner |
|---|---|---|---|
| Upfront Cost | $0 | $0 | Tie |
| Monthly Payment | Fixed ($230-$270) | Starts lower ($130-$180) | Depends |
| Annual Escalator | 0% | 1.99-2.99% | Propel |
| Payment at Year 25 | Same as Year 1 | ~2x Year 1 | Propel |
| 25-Year Total Cost | ~$69,000 | ~$60,000-$72,000 | Depends |
| Ownership | Year 5 automatic | Never (or FMV buyout) | Propel |
| System Value at Year 25 | Yours (still producing) | $0 to you | Propel |
| Federal ITC Captured | 30-50% | 30% | Propel |
| Dealer Fees | 0% | N/A (built into rate) | Propel |
| Performance Guarantee | 85% (5 years) | Full term | Lease |
| Free Maintenance | 5 years | Full term | Lease |
| Min Credit Score | 660 FICO | 580-620 varies | Lease |
| Equipment Choice | Silfab only | Provider decides | Tie |
| Home Sale Impact | Owned asset after yr 5 | Lease transfer required | Propel |
| Early Termination | Pay off loan anytime | Buyout at remaining value | Propel |
| State Availability | ME, TX only | Nationwide | Lease |
Propel wins 9 categories, the lease wins 3, there are 2 ties, and 2 are context-dependent. The categories where leases win (credit requirements, maintenance coverage, state availability) are important for accessibility but do not affect long-term financial outcome. The categories where Propel wins (ownership, escalators, home value, total cost) are the factors that determine 25-year savings.
With Propel, the Early Buyout Option (EBO) at year 5 is automatic. The buyout price is pre-set at signing and is already incorporated into your loan. There is no negotiation, no appraisal, and no additional payment. You wake up on the day of transfer and own a solar system.
With a solar lease, you never own the system during the lease term. At the end of 20-25 years, you have three options: (1) buy the system at fair market value (typically $3,000-$8,000 for a system that age), (2) renew the lease at a renegotiated rate, or (3) have the system removed, which the leasing company is required to do at their expense.
The ownership difference has cascading effects. An owned solar system adds approximately $4 per watt to home value according to the Lawrence Berkeley National Laboratory. For an 8kW system, that is $32,000 in added value at installation, depreciating to $15,000-$20,000 by year 10 and $5,000-$10,000 by year 25. A leased system adds limited value because the buyer must assume the lease obligation or negotiate a buyout.
Years 1-5
Third-party owner
Year 5
Automatic transfer to you
Years 5-25
You own, continue fixed payments
Year 25+
Fully paid off, free electricity
Years 1-25
Leasing company owns system
Year 25 Option A
Buy at fair market value
Year 25 Option B
Renew lease at new terms
Year 25 Option C
Remove system (company pays)
Selling a home with solar is a common concern. The experience differs significantly between Propel and a lease.
After year 5, you own the system outright. It is treated like any other home improvement: kitchen, deck, pool, solar. The system adds value, buyers see it as a benefit, and there is no lease agreement for the buyer to assume. Your real estate agent markets it as “owned solar with 20 years of free electricity remaining.” Multiple studies confirm owned solar increases home value by $15,000-$25,000.
Before year 5, you have two paths: (1) exercise the early buyout at the pre-set price and sell as an owned system, or (2) transfer the Propel agreement to the buyer. Transfer requires buyer credit qualification (660+ FICO). This adds complexity but is manageable. Most savvy buyers recognize the value of taking over a $250/month fixed payment for solar with automatic ownership coming at year 5.
Selling with a lease requires the buyer to assume the remaining lease obligation. This can be a friction point. Some buyers are unwilling to take on a lease with escalating payments from a company they did not choose. Some mortgage lenders add the lease obligation to the buyer's debt-to-income ratio, potentially affecting loan approval. In competitive real estate markets, a lease can slow the sale. In soft markets, sellers sometimes buy out the lease before selling to remove the friction, which can cost $10,000-$20,000 depending on remaining term.
We sell Propel, so we want to be especially transparent about when a lease is genuinely better. These scenarios are real, and choosing the wrong product is worse than choosing no product.
Propel is not an option. Many lease providers accept 580-620+ FICO scores. A lease gets you solar savings that Propel cannot.
Propel is only available in two states. Leases from Sunrun, SunPower, and others are available nationwide. Geographic availability trumps product superiority.
Leases include full-term maintenance and monitoring. Propel covers only years 1-5. After year 5, equipment warranties apply, but day-to-day maintenance is your responsibility.
Leases start at $130-$180/month versus Propel at $230-$270/month. If monthly cash flow is your primary constraint, the lower starting lease payment may be essential.
Lease transfers are common and lenders are familiar with them. Transferring a Propel agreement before year 5 adds a layer of complexity that lease transfers do not.
Lease production guarantees last the full 20-25 year term. Propel guarantees cover only years 1-5. If long-term guaranteed production is critical to you, leases provide more coverage.
Understanding who you are comparing Propel against helps frame the decision. Here are the major solar lease providers and their key terms.
Largest residential solar company. Acquired Vivint Solar. Strong maintenance network.
Premium equipment, premium price. Best panels on the market but highest lease cost.
Tesla subscription model starts at $50/month. Limited availability. Powerwall add-on.
Major regional installer, especially strong in Texas.
Online-first model. Competitive pricing. Growing rapidly.
The numbers below use a real-world scenario: an 8kW system producing approximately 10,000 kWh/year in a market with $0.25/kWh utility rates growing at 3% annually.
The lifetime benefit gap ($48,000-$67,000) is driven primarily by ownership. After year 25, the Propel homeowner has a paid-off system generating free electricity for another 10-15 years. The lease customer either pays for a renewal, buys the system at FMV, or loses the solar entirely. Ownership is the single biggest financial differentiator.
This is one area where leases have a genuine advantage. Solar leases include performance guarantees and maintenance coverage for the full lease term (20-25 years). If a panel fails in year 18, the leasing company replaces it at no cost. If production drops below the guaranteed threshold in year 22, the leasing company credits you.
Propel's performance guarantee (85% of estimated kWh) and free maintenance cover only the first 5 years, the managed period. After ownership transfer, you rely on equipment manufacturer warranties: 25-year panel warranty from Silfab, 25-year microinverter warranty from the inverter manufacturer, and NuWatt's 25-year system monitoring. These warranties are robust, but they cover equipment defects, not production guarantees.
In practice, the risk difference is smaller than it appears. Solar systems have very few moving parts, panel degradation follows predictable curves (0.3-0.5% per year), and modern microinverters are rated for 25+ years. The most common maintenance issue is inverter replacement, which is warranty-covered regardless of ownership structure. But if complete peace of mind for the full system life is your priority, leases objectively provide more coverage.
For homeowners with 660+ FICO scores in Maine or Texas who plan to stay in their home for 5+ years, Propel delivers superior long-term financial outcomes compared to a solar lease. The combination of fixed payments, automatic ownership at year 5, zero dealer fees, and the captured Section 48E ITC creates a total benefit that exceeds leasing by $20,000-$30,000 over the system's lifetime.
For homeowners with credit scores below 660, in states where Propel is unavailable, or who prioritize the lowest possible starting payment and full-term maintenance coverage, a solar lease is the better choice. There is no shame in leasing. A solar lease still saves money compared to no solar at all. Any form of solar is better than paying full utility rates.
The one thing we would caution against: choosing a lease with a 2.99% escalator when you qualify for Propel. The escalator erodes savings significantly over 25 years, and the lack of ownership means you have nothing to show for decades of payments. If you have the credit and live in the right state, Propel is the stronger financial decision.
Your home, your usage, your credit tier. Get a personalized comparison of Propel vs lease options from NuWatt.
Enter your monthly electric bill to compare lease escalators vs. fixed Propel ownership payments.
Compare lease escalators vs. Propel ownership by state
Lease Total
$64,356
over 25 years
Propel Total
$31,824
fixed 25 years, own yr 5
You Save
$32,532
with Propel
Crossover Year
Year 1
Lease > Propel
Auto-sized system: Based on your $200/mo bill in Massachusetts, a ~6.5 kW system would offset your usage, producing ~7,800 kWh/year.
Lease: $141/mo starting (PPA at $0.22/kWh = 70% of utility rate) | Propel: $102/mo fixed for 25 years | System: $20,020 (6.5 kW @ $3.08/W)
Massachusetts is on the Propel waitlist — join the waitlist