Cost of Leasing vs. Buying Solar Panels in California 2025

California continues to lead the nation in solar adoption, thanks to abundant sunshine, strong incentives, and rising electricity rates. For homeowners exploring solar panels in California in 2025, one of the first major decisions is whether to lease or buy. Each option carries unique pros, cons, and long-term financial impacts.

This guide breaks down the costs, benefits, and key differences between leasing and buying solar panels in California, so you can choose the option that makes the most sense for your home—and your wallet.

Weigh All Your Options Before Settling on a Solar System

Before investing in solar, it’s important to understand the various ownership models available. Buying may offer more long-term value, but leasing could work better for short-term budgets or those who don’t want to deal with maintenance. Let’s explore both paths to help you make an informed choice.

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Buying Solar Panels in California

Buying solar panels means you own the system outright, either through a cash purchase or a solar loan.

Upfront Cost

As of 2025, the average cost to install a residential solar system in California is around $14,000 to $16,000 before incentives, or roughly $2.30–$2.60 per watt, according to updated data from EcoFlow.

Financial Benefits

• 30% Federal Solar Tax Credit (ITC)
• California-specific incentives through local utility providers
• Long-term electricity savings, often $20,000–$40,000 over the system’s life
• Increased home value (especially in real estate–active markets like SoCal and the Bay Area)

Pros of Buying

• Full system ownership
• Higher long-term return on investment (ROI)
• Eligible for tax credits and rebates
• Increases property value
• Greater control over equipment and performance

Cons of Buying

• Higher initial investment (even with loans)
• Homeowner is responsible for monitoring and maintenance (though many systems come with 20–25 year warranties)

Leasing Solar Panels in California

Leasing means you don’t own the solar system—you pay a monthly fee to use it, similar to renting. The installer or leasing company maintains ownership and handles maintenance.

Typical Lease Cost

Lease payments range from $50 to $150/month, depending on system size and solar provider. There are often $0 upfront costs, making it attractive for those who can’t or don’t want to make a large investment.

Financial Impact

• You benefit from lower monthly electric bills, but you do not receive tax credits or incentives
• Lower lifetime savings compared to owning
• The leasing company gets most of the long-term benefits

Pros of Leasing

• Low or zero upfront cost
• Maintenance and performance monitoring handled by the provider
• Predictable monthly payments
• Easy entry point for solar adoption

Cons of Leasing

• You don’t own the system
• Ineligible for federal/state incentives
• Can complicate selling your home (must transfer or buy out the lease)
• Lower lifetime savings compared to ownership

What the 2025 Solar Market Says

Solar Reviews report that in 2025, solar power has been growing rapidly in the U.S. over the past decade, with more than 163,452 megawatts (163 GW) of solar capacity installed nationwide. California remains the leader, holding the highest amount of installed solar capacity in the country. In fact, over 4.7 million homes in the U.S. now have solar panels, with an average installation size of about 7.13 kilowatts. The widespread adoption reflects growing homeowner interest in solar panels in California and beyond, driven by the desire for energy independence and savings.

US Power Helps You Make the Smart Solar Choice

Choosing between solar leasing and buying solar panels in California comes down to your budget, energy goals, and how long you plan to stay in your home. Leasing offers a hands-off, low-cost entry into solar, while buying gives you full control, bigger savings, and a stronger return over time.

At US Power, we’re here to make that decision easier. We provide personalized guidance to help you understand the real cost and benefits of each option—no jargon, no pressure. Our team connects you with trusted installers, helps you find rebates and financing options, and ensures your solar journey is smart from start to savings.

Ready to take the next step? Visit US Power today to schedule your free consultation and find out how solar panels in California can save you money and power your home sustainably!