Our numbers, side by side
Cash: our installed price is $2.80–$3.25 per watt, so a 7 kW system runs about $19,600–$22,750 before any local rebate. Loans: the Colorado RENU loan through Westerra Credit Union at 7.74%–8.99% APR for up to 20 years, or Concert Finance at 8.99% for up to 25 years. Financing about $21,000 over 20 years works out to roughly $172–$189 a month depending on the rate.
Leases and PPAs: typically priced 20–30% below your retail utility rate, with typical payments of $125–$240 a month and annual escalators of 0–3%. No upfront cost, and the owner handles monitoring and repairs under the contract.
Escalators: the number to read twice
A 0% escalator means the payment never changes. A 3% escalator compounds: after 20 years the payment is about 80% higher than year one; after 25, roughly double. That can still beat utility rates if they rise faster, but it’s a bet. Pick a structure you’d be comfortable with even if utility rates rise slowly.
A loan payment is fixed. Once it’s paid off, the power is essentially free apart from maintenance — the reason owners come out ahead over the long run, if they stay in the house.
Lease vs. PPA
With a lease you pay a fixed monthly amount for the equipment, regardless of how much it produces. With a PPA you pay per kilowatt-hour the system actually produces. A PPA shifts production risk to the owner; a lease is easier to budget.
Selling the house
An owned, paid-off system is simplest to sell. A loan usually gets paid off at closing. A lease or PPA has to be transferred to the buyer, who must qualify, or bought out. It’s routine but adds paperwork and occasionally friction with a buyer. If you might sell within a few years, factor that in.
What to do next
- 1Get one design, then price it as cash, loan, lease and PPA in the financing calculator.
- 2For any lease or PPA, calculate the final-year payment with the escalator.
- 3Read transfer and buyout terms if you might sell.
- 4Ask a tax professional whether owning affects anything on your return — there’s no federal homeowner credit for 2026 installs.
FAQ
Questions we hear
Who owns the panels in a lease?
The lease company does. You use the power, and the owner is responsible for the equipment under the contract terms.
Can I buy out a lease early?
Most leases include buyout provisions, often after a set number of years. Read the schedule before signing — it’s the number that matters if you sell.
Does a lease affect my home appraisal?
Leased systems generally aren’t counted as part of the home’s value because you don’t own them. An owned system may be. Ask your appraiser or agent.
Can I lease a battery?
Batteries are treated as storage under §48E, which continues much longer than solar’s 2027 deadline. Ask us about current battery lease options for your home.
Which is cheapest over 25 years?
Usually cash, then a loan, if you stay in the house and the system performs as modeled. Leases can win if you’d otherwise leave cash idle, if you might move, or if the escalator is low.