{
  "slug": "solar-buy-vs-lease",
  "title": "Solar Buy vs Lease Calculator",
  "heading": "Solar Panel Buy vs Lease Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/solar-buy-vs-lease",
  "summary": "Compare owning your solar system outright against a 20-year lease or PPA.",
  "description": "Buying solar costs more upfront but you keep 100% of the savings and any tax credit, while leasing (or a power purchase agreement) requires no money down but locks you into an escalating payment and forfeits ownership incentives. This tool compares total cash outlay over a typical 20-year system life: purchase price minus incentives and electricity savings, versus total lease payments with an annual escalator, minus the smaller savings a lease still provides.",
  "formula": "Buy Total = Purchase Price − Tax Credit − Total Electricity Savings. Lease Total = Sum of escalating annual lease payments − smaller electricity savings.",
  "dateModified": "2026-09-06",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=solar-buy-vs-lease",
  "inputs": [
    {
      "id": "systemCost",
      "label": "System purchase price",
      "kind": "number",
      "hint": null,
      "default": 24000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "taxCredit",
      "label": "Federal tax credit %",
      "kind": "number",
      "hint": null,
      "default": 30,
      "unit": "%",
      "min": 0,
      "max": 50
    },
    {
      "id": "monthlySavingsBuy",
      "label": "Monthly electric savings if owned",
      "kind": "number",
      "hint": null,
      "default": 160,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "leasePaymentMonthly",
      "label": "Lease/PPA starting monthly payment",
      "kind": "number",
      "hint": null,
      "default": 110,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "escalator",
      "label": "Lease annual escalator",
      "kind": "number",
      "hint": null,
      "default": 2.9,
      "unit": "%",
      "min": 0,
      "max": 10
    },
    {
      "id": "years",
      "label": "System life",
      "kind": "number",
      "hint": null,
      "default": 20,
      "unit": null,
      "min": 5,
      "max": 30
    }
  ],
  "outputs": [
    {
      "id": "winner",
      "label": "Lower net cost option",
      "format": "raw",
      "hint": null,
      "primary": true
    },
    {
      "id": "buyTotal",
      "label": "Buy net cost (20yr)",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "leaseTotal",
      "label": "Lease/PPA total cost (20yr)",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "diff",
      "label": "Difference",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "System purchase price: 24000 $",
      "Federal tax credit %: 30 %",
      "Monthly electric savings if owned: 160 $",
      "Lease/PPA starting monthly payment: 110 $",
      "Lease annual escalator: 2.9 %",
      "System life: 20"
    ],
    "outputs": [
      "Lower net cost option: Buy",
      "Buy net cost (20yr): -$29,851",
      "Lease/PPA total cost (20yr): $35,110",
      "Difference: $64,961"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter system purchase price ($).",
      "Enter federal tax credit % (%).",
      "Enter monthly electric savings if owned ($).",
      "Enter lease/ppa starting monthly payment ($).",
      "Enter lease annual escalator (%).",
      "Enter system life.",
      "Read your lower net cost option on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "systemCost": 14500,
        "taxCredit": 18,
        "monthlySavingsBuy": 100,
        "leasePaymentMonthly": 65,
        "escalator": 1.74,
        "years": 12
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "systemCost": 24000,
        "taxCredit": 30,
        "monthlySavingsBuy": 160,
        "leasePaymentMonthly": 110,
        "escalator": 2.9,
        "years": 20
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "systemCost": 38500,
        "taxCredit": 48,
        "monthlySavingsBuy": 260,
        "leasePaymentMonthly": 175,
        "escalator": 4.64,
        "years": 30
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Why does buying usually win long-term?",
      "a": "Because you capture the 30% federal tax credit and 100% of electricity savings instead of splitting them with a leasing company, and once paid off the system produces free power for years."
    },
    {
      "q": "When does a lease make sense?",
      "a": "If you can't use the tax credit (low tax liability), don't have upfront cash, or plan to move before the system pays for itself, a lease avoids upfront risk at the cost of long-run savings."
    },
    {
      "q": "Does leasing affect selling my house?",
      "a": "Yes — most leases must be transferred to the buyer or paid off at sale, which can complicate a home sale in ways outright ownership doesn't."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/solar-savings",
    "https://www.revenuelab.fyi/toolbox/solar-payback-itc"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Solar Buy vs Lease Calculator (https://www.revenuelab.fyi/toolbox/solar-buy-vs-lease)"
}