If you’re going solar in 2026, the first big question usually isn’t what the best panels or materials are – it’s whether you should own the system or lease it. It’s one of the most important financial decisions in the whole process, and the right answer shapes everything from your upfront cost to what you’ll be paying decades from now.
Leasing can look like the less expensive choice on day one, but for most homeowners, owning captures far more savings over the life of the system. Let’s take a deeper dive into why:
What's the Difference?
When you drive by a home with solar, there’s really no way to tell whether it’s leased or owned unless you talk to the homeowner – it’ll look the same either way. But under the surface, leasing and buying have big differences which control your upfront costs, long-term savings, and everything in between.
Buy (Cash or Loan)
When you buy solar, you own the system outright. There’s usually a larger upfront cost, paid in cash or spread out through a loan, but once it’s paid off, the power your roof produces is essentially free.
Lease/PPA
When you lease solar, a third-party company owns the panels on your roof. You pay a monthly fee, usually with little or no money down, for use of the system and the electricity it produces. You’re essentially renting the equipment, and the savings that come with it
Lease vs. Buy At a Glance
| Own/Buy (Cash or Loan) | Leasing/PPA | |
|---|---|---|
| Who owns the system? | You | A third-party company |
| Customization | It's your system so you can get as specific as you want when choosing panels, materials, location, etc | Usually more cookie-cutter designed instead of custom to your home and location |
| Upfront Cost | $$$ (Higher or financed) | $ (Little to none upfront) |
| Long-term Savings | $$$ | $ |
| Federal Tax Credit (2026) | None for direct buyers | Claimed by your provider - may lower your payment, but no direct incentive to you as a customer |
| NY State Credits (25% up to $5,000) | Yes, on full system cost | Yes, but based on your lease payments |
| End of Term | System is yours right from the start - power is essentially free | You do not own the system unless you buyout from your provider |
| Selling Your Home | Adds value - solar is an asset to your home, adding value similar to other home renovation projects | Can complicate sale - generally requires either a lease transfer to the new owner or buyout of your lease prior to sale |
| Post-Installation Service | Your installer stands behind system | Provider takes care of service |
What's Changed in 2026
For years, a big part of the draw for buyers was the 30% Federal Residential Tax Credit (25D). That credit ended for systems installed after December 31, 2025 – meaning if you buy solar in 2026 with cash or a loan, there’s no Federal credit waiting for you at tax season.
The Federal credit didn’t vanish entirely, though. Because a leased or PPA system is owned by the financing company, that company can still claim the commercial version version of the credit, which is often passed along to you as a lower monthly payment. This is only available for a limited time too – currently set through the end of 2027.
So in 2026, leasing is the only path to a Federal credit. That sounds like a point to the lease column, and honestly it is one. But it’s just one piece of the story, and a tax credit alone shouldn’t be the deciding factor between leasing and buying your solar.
Why Owning Still Wins for Most New York Homeowners
For most homeowners, this is an easy question – owning solar generally saves you more in the long run. A lease looks less expensive in month one, but most leases come with an escalator (a clause that raises your payment by ~1-3% each year for the life of your contract. And that payment never goes away. When you own, even with a loan, you’ll eventually stop paying while the system keeps producing at no cost. Stretch that out over 20-25 years and ownership almost always comes out ahead.
Owning also adds real value to your home. An owned system is an asset that stays with the house, similar to any other home improvement project – except this one generates energy! Research from SolarReviews found that homes with solar in New York consistently sell for more – about 10.8% more on average (2). On a $300,000 home, that’s roughly $30,000 in added value, and that’s before you count the electric bill savings you start earning the day it’s installed. A lease, in contrast, can complicate a sale of your home, since the new buyer usually has to agree to take over your contract, or you have to buy the lease out before selling.
New York rewards owners too. The state’s solar energy system equipment credit is 25% of your system cost, up to $5,000, with a 5-year carry-forward if you can’t use it all at once – and that’s on top of New York’s sales tax and property tax exemptions for solar. Pair that with 1:1 net metering, where the excess power your panels send to the grid comes back to you as bill credits, and the ownership argument keeps getting stronger.
Owning also gives you the freedom to customize at any point: choosing a solar panel brand you trust, adding a battery, expanding the system down the road or more. That flexibility simply isn’t there when someone else owns the equipment on your roof.
When Does Leasing Make More Sense?
Leasing does have its place. If you have little to no tax liability, no cash and no wish to finance, or plan to move soon, a lease can be the right call. It’s built for short-term or immediate savings without a large upfront investment. For the vast majority of homeowners, though, owning is still the way to maximize savings over the life of your system.
Making the Best Choice for You
Ready to see your real numbers?
The best way to compare lease vs. buy is by comparing it with your actual home. By getting quotes for both owned solar and leased solar to compare over the long term, you can set yourself up to make the best decision.
With experience across 4,000+ installations in New York, we’ll show you the honest numbers that you can use when comparing owned or leased solar quotes.
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