Should I buy out my solar lease?

A solar lease buyout makes financial sense if the buyout price is below the current market value of the panels. Since leased panels typically age 5–15 years by buyout option time, fair market value may be lower than the buyout price. Calculate whether buying out and then selling the home with owned solar versus leased solar will net more money.

How is a solar lease buyout price calculated?

Lease buyout prices are typically specified in the original lease contract, often as a percentage of the original system cost or based on remaining lease term. Buyout prices generally decline over time. Compare the buyout price to (1) remaining lease payments, (2) what you'd save in electricity owning the system free and clear, and (3) current panel replacement cost.

Should I buy out my solar lease?

Buying out a solar lease makes sense if the buyout price is below the system's market value and you plan to stay in the home long-term. Calculate the remaining savings over the lease term versus the buyout cost. At home sale, an owned system adds value; a leased system must be transferred to the buyer (complicating the sale) or bought out at closing.

How is the solar lease buyout price typically calculated?

Lease buyout prices are contractually defined — usually the fair market value of the system at the buyout date (assessed by the leasing company) or a pre-set declining schedule. Buyout prices typically range from $5,000–20,000 depending on system size, age, and original lease terms. Some leases have escalating buyout windows at specific contract anniversaries.

Solar Lease Buyout Calculator

Determine whether buying out your solar lease is worth it. Compare the buyout price against remaining lease payments and the value of full ownership to find your net financial benefit.

Years Remaining (yrs)

Monthly Payment ($)

Fair Market Value ($)

About This Calculator

The Solar Lease Buyout Calculator helps you decide whether purchasing your leased solar system mid-contract is a smart financial move. This situation arises most often when homeowners are selling their house (buyers are often reluctant to assume a solar lease) or when they want to claim ownership benefits — including any remaining warranty coverage, freedom from escalating lease payments, and the ability to claim any available incentives on a new battery addition. The calculation compares the buyout price (typically fair market value) against the value you gain by owning versus continuing to pay lease fees.

The fair market value of a used solar system is typically 40–60% of the original installation cost, declining with system age. A system originally worth $20,000 installed might have a fair market value of $10,000–$12,000 at age 8, dropping to $6,000–$8,000 at age 12. Lease companies often set their buyout prices using a fixed schedule in the contract — check your lease agreement for "purchase option" language, which specifies the buyout price at each contract year. Compare that number to this calculator's assessment of whether the buyout makes financial sense.

Annual savings from ownership represents the electricity savings your system generates minus any ongoing ownership costs (maintenance, monitoring fees). If you are currently paying $120/month in lease payments but the system saves you $150/month in electricity — a net of $30/month — then buying out shifts that $150/month savings entirely to your benefit at the cost of the buyout price. The break-even on the buyout is roughly FMV / ($150/mo × 12) = buyout price / annual savings.

Lease buyouts also matter significantly during home sales. Many buyers are reluctant to assume a solar lease, and some lenders complicate mortgage approvals when leased solar equipment is involved. Buying out the lease before listing your home simplifies the transaction and allows you to market the home as having owned solar panels — a feature that adds demonstrable value in most markets. This calculator helps you assess whether the pre-sale buyout cost is justified by the simplified transaction and potential home value increase.

Calculations based on NREL solar modeling data and industry-standard assumptions, built and maintained by the independent SolarToolsOnline research team.

Estimates only — not financial, tax, or legal advice. Verify important results with a licensed solar installer or financial professional before making decisions.