What happens to a solar lease when you sell your house?

When you sell a home with a leased solar system, you have three options: transfer the lease to the buyer (requires credit approval and their willingness), buy out the lease at the current price, or pre-pay the remaining lease. Transferring a lease can complicate and sometimes derail home sales. Owned systems transfer simply with the home sale.

What are the advantages of buying solar vs leasing?

Buying solar (cash or loan) lets you capture the full 30% federal tax credit, all electricity savings, home value increase, and SREC income where available. Leasing offers $0 down and no maintenance responsibility, but you capture only 10–20% of the system's economic value and the leasing company gets the tax credit. Over 20 years, ownership typically delivers 2–3x the financial return of leasing.

Can I sell my home if I have a solar lease?

You can, but solar leases complicate home sales. The new buyer must qualify to take over the lease, or you must buy out the lease at closing. Many buyers are unfamiliar with solar leases and may be hesitant, potentially reducing your home sale price or sale speed. Owned solar systems — in contrast — typically increase home value by $15,000–25,000.

Solar Lease vs Buy Calculator

Compare the true 20-year cost of buying solar outright (after tax credit) versus leasing from a solar company. Discover which option puts more money back in your pocket.

System Cost ($)

Monthly Payment ($)

Lease Term (yrs)

Monthly Bill ($)

About This Calculator

The Solar Lease vs Buy Calculator cuts through the marketing to show you the real financial difference between owning your solar system and leasing one. When you buy, you pay upfront (or finance) and own an asset that generates free electricity for 25+ years. Note: the federal residential ITC expired December 31, 2025 for homeowner-owned systems. When you lease, When you lease, you pay a fixed monthly fee to a third party who owns the panels — you get lower bills, but no tax credit, no ownership equity, and a contract that can complicate home sales. This calculator quantifies that gap over the full lease term.

The key insight most homeowners miss is that leases often escalate 1–3% per year, while your utility bill savings compound at the utility's escalation rate. In years 15–20, many leaseholders find their lease payment approaches or even exceeds what they were originally saving. Buying, by contrast, fixes your net cost on day one — after which every year of savings is pure profit. The "Buy vs Lease Advantage" shown here is the difference in net financial position at the end of the lease term.

To use this calculator accurately, get an actual lease quote — not a salesperson's estimate — that specifies the monthly payment, any annual escalator, and what happens at the end of term (buy, renew, or remove). For the purchase scenario, use your actual installer quote and verify your federal tax credit eligibility. If you are financing the purchase rather than paying cash, use the Solar Loan Calculator to determine the true loan cost and compare that against the lease.

Solar leases made sense when panels were expensive and the tax credit required significant tax liability. Today, with panels at $2.50–$3.50/W and accessible solar loans at 5–8%, buying almost always wins financially over a 20-year period. The lease may still make sense for homeowners with low tax liability, limited upfront capital, or preference for a zero-maintenance arrangement.

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.