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The ITC changed everything. With the federal tax credit gone for homeowner purchases, the lease vs. buy math has shifted. Here's an honest comparison.
Before 2025, buying solar was almost always better — you kept the 30% federal tax credit (Section 25D). That credit is now gone for homeowner purchases. But lease/PPA companies still claim 30% under Section 48/48E, and they pass those savings to you through lower monthly rates. The gap between buying and leasing has narrowed significantly.
| Factor | Cash / Loan Purchase | Lease / PPA |
|---|---|---|
| Federal Tax Credit | $0 (Section 25D expired) | 30% (claimed by installer under 48/48E) |
| Upfront Cost | $20,000–$30,000 | $0 down |
| Monthly Payment | $0 (you own it) | $80–$150/mo typical |
| System Ownership | You own it outright | Installer owns it |
| Maintenance | Your responsibility | Included in lease |
| 25-Year Total Savings | Highest (after payback period) | Moderate (savings start day 1) |
| Home Value Impact | Increases ~4% | Minimal (lease transfers) |
| Best When | Strong state incentives, staying 10+ years | No state incentives, want immediate savings |
Buy
$0 (Section 25D expired)
Lease/PPA
30% (claimed by installer under 48/48E)
Buy
$20,000–$30,000
Lease/PPA
$0 down
Buy
$0 (you own it)
Lease/PPA
$80–$150/mo typical
Buy
You own it outright
Lease/PPA
Installer owns it
Buy
Your responsibility
Lease/PPA
Included in lease
Buy
Highest (after payback period)
Lease/PPA
Moderate (savings start day 1)
Buy
Increases ~4%
Lease/PPA
Minimal (lease transfers)
Buy
Strong state incentives, staying 10+ years
Lease/PPA
No state incentives, want immediate savings
In states with strong state incentives, buying solar still produces the highest long-term returns. Here's what state incentives look like on a typical 8kW system:
New Jersey
$7,200
$0.90/W incentive
Rhode Island
$2,800
$0.35/W incentive
Connecticut
$2,000
$0.25/W incentive
New York
$1,600
$0.20/W incentive
Vermont
$800
$0.10/W incentive
Pennsylvania
$400
$0.05/W incentive
Massachusetts
$320
$0.04/W incentive
Now that the federal credit is gone for purchases, lease/PPA has a stronger case — especially in states without state incentives.
New Hampshire
$0
No state incentive
Maine
$0
No state incentive
Texas
$0
No state incentive
Georgia
$0
No state incentive
Yes (NJ, RI, CT, NY, PA, MA, VT)
Buying likely wins. State incentives offset the lost federal credit.
No (NH, ME, TX, GA)
Lease/PPA has a strong case. You get the 30% ITC benefit indirectly.
Yes
Buying maximizes your 25-year savings and adds home value.
No
Lease/PPA gives you savings from day 1 with $0 down.
10+ years
Buying wins. You'll be past payback and saving thousands per year.
Under 10 years
Lease/PPA avoids the payback risk. Savings are immediate.
We'll provide a detailed comparison of purchase vs. lease/PPA pricing for your specific home, roof, and energy usage. No commitment.