Should You Buy or Lease Your Solar Panels in 2025? (Updated)

Solar is still surging in 2025, but the rules of the game just changed. On July 4, 2025, President Trump signed the “One Big Beautiful Bill Act,” a sweeping law that accelerates the phase‑out of clean‑energy incentives and eliminates the 30 % federal tax credit for leased residential systems starting this year. Homeowners now have a narrower window—credits for purchased systems begin winding down in 2026 and disappear after 2028—to lock in the biggest savings. In this guide, we unpack how the new law reshapes the buy‑vs‑lease math and outline the fresh pros and cons so you can choose the smartest path to solar ownership in the post‑OBBB era.

Why This Question Matters in 2025

• Tax rules just shifted. the residential 30% tax credit for systems owned (cash/loan) remains available only through December 31, 2025; meanwhile, credits for leased systems are eliminated immediately.
• Electricity prices keep climbing. California’s average residential rate is up 31 % since 2022, and other states are following suit.
• Solar tech prices have leveled off. The steep cost drops of the 2010s have slowed, so financing choices now drive the bulk of your savings.

Quick‑Look Comparison

_{*Estimates assume 3 %/yr utility inflation and 25‑year panel life.}

Purchasing vs. Financing: Pros and Cons

Buying

Pros

• Keeps every incentive: 30 % federal ITC + state rebates
• ‍Bigger net savings: You keep 100 % of bill offsets
• Adds home value & speeds resale
• Energy independence: Pair with a battery and skip peak‑rate headaches

Cons

• Cash needed up front (typical net cost after credit ≈ $20,650 for a 6 kW system)
• You pay for repairs (though panel warranties now run 25‑30 yrs)

Leasing / Power‑Purchase Agreement (PPA)

Pros

• $0–$1,000 down options common
• Hands‑off: Provider monitors, insures, and repairs
• Predictable bill: Fixed or gently escalating payment schedule

Cons

• No federal tax credit after 2025 bill
• Smaller lifetime savings (provider keeps incentives)
• Escalator clauses can outpace utility inflation
• Harder resale: Buyers must qualify for and accept the lease

2025 Policy Snapshot

Decision Checklist

1. How long will you live here?
   • ≥ 7 years: Buying almost always wins.
   • < 7 years: Lease or PPA can make sense if cash is tight.
2. Can you tap low‑interest financing?
   • Home‑equity or solar‑specific loans at < 5 % APR tip the scales toward ownership.
3. Comfort with maintenance?
   • Modern panels rarely fail (< 0.05 %/yr), but roof work is on you if you own.
4. Do you want a battery?
   • Bundling a battery with an owned system maximizes backup power and peak‑rate savings.

Pro Tip: Don’t Ignore Escalator Clauses

Lease payments that rise 2–3 % per year can erase up to 40 % of projected savings by year 20. Always compare the escalator to your utility’s historic rate hikes.

Bottom Line for 2025

• Buy if you can cover (or finance) the upfront cost and plan to stay put.
• Lease if cash flow is your only barrier and you’re comfortable with smaller long‑term gains.

Either way, pick a solar installer that explains every line of the contract—especially post‑2025 tax credit rules.

Get Expert, No‑Pressure Advice from US Power

In 2025, the decision to buy or lease solar panels comes down to your long-term goals, budget, and how recent policy changes may impact your investment. Buying offers greater long-term savings and full ownership benefits, while leasing provides a low-commitment, maintenance-free path to solar energy.

At US Power, we’re here to guide you every step of the way. Whether you're leaning toward ownership or considering a lease, our solar experts will help you find the most cost-effective solution for your home. We’ll run the numbers for buying vs. leasing, explain every incentive, and handle paperwork from permit to PTO.

Ready to go solar? For a detailed comparison and to explore your options further, Book a schedule with our consultant: Book Here!