How to Choose Between Leasing and Owning Solar

Quick Summary

Valley Solar is one of the few local installers qualified to offer both ownership and leasing options.

Why this matters

Choosing between leasing and owning your solar system is one of the biggest decisions homeowners face. Smaller local installers typically can’t offer leasing programs, while large national companies sell only leasing. Valley Solar’s ability to offer both makes us uniquely positioned to give homeowners unbiased, transparent advice that’s based on what truly fits their needs.

What to Know Before You Start

Ownership means you pay for your system with cash or a loan, and you receive the incentives and long-term savings. Leasing means a third party owns the system and you pay a set monthly amount for the power it produces. In Massachusetts, ownership usually delivers the highest return because homeowners receive all incentives to realize the largest energy savings once the system is paid off.

A Temporary Quirk in the Tax Credits Favors Leasing
As of January 1, 2026 the Solar Investment Tax Credit (ITC) has been eliminated for solar ownership under section 25D of the IRS code. However, leasing is considered commercial solar and falls under section 48E. The commercial solar tax credit is still available until 12/31/2026 provided certain conditions are met. Therefore, in 2026 leasing companies can take advantage of the tax credit and pass some of those savings on to the homeowner. This can make leasing very competitive with ownership, even on a longer-term basis. It is worth a look if you plan to invest in solar in 2026.

Common Misconceptions About Leasing
You’ve likely seen ads for “free solar” or “no-cost solar” programs. These are leasing or power purchase agreements (PPAs), not free systems. Leasing can make sense for some homeowners, but it’s not the only option. Many national solar companies only sell leases, meaning their recommendations are limited by their business model. At Valley Solar, we’re qualified to offer both purchase and lease options, so you can be confident our advice is genuinely customer-first.

Step-by-Step: How to Decide

1. Define your goals
   Are you looking for maximum savings or lowest upfront cost?
2. Evaluate financing
   Ownership usually offers the greatest long-term savings; leasing simplifies payments and removes maintenance responsibilities.
3. Think long-term
   Consider how long you plan to stay in your home and whether you want to own the system outright.
4. Review your proposal
   Valley Solar can provide side-by-side comparisons so you can see the lifetime value clearly.
5. Choose confidently
   Our team will guide you through either path, ensuring you’re set up for success.

Helpful Tips & Watchouts

• Avoid high annual escalators in lease contracts. Some leases include escalators of up to 3.9%/year. If your roof is low productivity, this can be unavoidable.
• Review buyout terms if you plan to sell your home.
• Understand who owns the system and how that affects resale value.
• Request a detailed breakdown showing energy savings assumptions.
• Make sure your installer offers both options so their advice is unbiased.

Key Takeaways

• Ownership offers the greatest lifetime savings and full control over your system. 
• Leasing provides a low-barrier entry point with predictable payments. 
• In Massachusetts, ownership often delivers higher overall value due to state and federal incentives. 
• Valley Solar provides side-by-side comparisons so you can choose what’s right for your budget and goals.