Solar Lease vs Buy Calculator: Cash, Loan & PPA
Cash wins on lifetime dollars, a loan adds a 10–30% dealer fee, and a lease keeps the 30% §48E credit with the lessor — compare all three over 25 years.
· Source: EIA Electric Power Monthly Table 5.6.A (July 2026 data) · next EIA update ~Oct 23
On this page: CalculatorTableHow we calculatedSources
Jump to calculator ↓Why this number
Most “solar financing” calculators quietly assume the option that pays their referral. This one doesn’t take referrals, so it just shows you the math — including the two costs the sales pitch skips: the dealer fee hidden in low-rate loans and the escalator hidden in leases.
How to read it
Three numbers, one honest comparison:
- Cash is the baseline — what the system costs with no financing. In 2026 there’s no 30% credit to subtract, so this is close to your true net cost.
- The loan total is the cash price plus the dealer fee, amortized at your APR. That fee is the reason a “1.99%” loan can cost more than a plain 7% one — the loan-vs-cash guide breaks down the trap.
- The lease total compounds your starting payment by the escalator for 25 years. It’s usually the priciest path and leaves you owning nothing — though a competitive lease is the only route that still touches the 30% credit via §48E . The lease-vs-buy guide covers when it still makes sense.
Once you’ve picked a path, size the system and estimate the payback in the 2026 savings calculator , and see where your state lands in the payback ranking .
Unsure which federal rule even applies before comparing structures? The eligibility checker settles §25D-vs-§48E in three inputs.
Frequently asked questions
Is it cheaper to pay cash, finance, or lease solar in 2026?
In most scenarios cash is the lowest-cost route over the life of the system — no interest, no dealer fee, no escalator — but the gap narrows once you account for what your money could earn elsewhere, which is why this tool compares all three in present value rather than as raw totals. A loan typically comes next, though a hidden dealer fee can add 20% or more to what you finance. A lease is $0 down and usually the highest total once the escalator compounds, and you never own the panels. Which is right depends on your own tax position, cash position and how long you will stay, so treat the ranking as a starting point rather than an answer.
What is the solar dealer fee this calculator uses?
It’s the cut a lender pays the installer for arranging your loan — typically 20–30% of the loan amount — rolled into the balance you repay. A ‘1.99%’ loan usually carries a big fee, so this tool lets you add it to see the real financed total instead of the teaser rate.
Why is a lease often the most expensive over 25 years?
Because of the escalator. A payment that starts below your utility bill grows every year — at 2.9% a $120 payment becomes about $240 by year 25 — so the 25-year total often exceeds buying, and you own nothing at the end.
Does the lease still get the 30% tax credit in 2026?
Indirectly. A 2026 cash or loan buyer gets $0 federal credit. Only the third-party owner of a leased/PPA system claims the commercial §48E credit and may pass part of it through as a lower rate — which is why a competitive lease can still be worth pricing.
How we calculated this
Cash: net cost = price (federal credit $0), value = 25 years of escalated bill savings. Loan: payment from principal, APR and term by the standard amortization formula, plus any dealer fee; value = savings − payments. Lease/PPA: value = savings − escalating monthly payment (escalator compounding yearly); the provider keeps §48E. Each column’s 25-year net is what the tool ranks.Sources: U.S. Energy Information Administration (EIA) electricity rates · DSIRE incentive records · public IRS/OBBBA guidance. Figures are modeled estimates, not quotes or tax advice. See our methodology.