Solar Panel Lease & Rental Cost by State

Solar panel lease payments typically range from $50 to $150 per month for a standard 6kW residential system, with $0 down. The exact cost depends on your state, system size, and the leasing company. Lease payments are designed to be lower than your current electricity bill, so you start saving from day one. Some leases include an annual escalator of 1-3% that increases payments slightly each year.

With a solar lease, you pay a fixed monthly fee to rent the solar panel system regardless of how much electricity it produces. With a Power Purchase Agreement (PPA), you pay a set rate per kilowatt-hour (kWh) for the electricity the panels generate, typically 10-20% below your utility rate. Both options require $0 down, but PPAs tie your cost directly to production while leases provide predictable monthly payments. In both cases, the third-party company owns the system, claims the tax credits, and handles maintenance.

Buying solar panels (with cash or a loan) typically provides 40-70% more total savings over 25 years because you own the system, claim the 30% federal tax credit, and keep all electricity savings. However, leasing is a strong option if you want $0 upfront cost, no maintenance responsibility, and immediate monthly savings without a large investment. Leasing also makes sense if you cannot take advantage of the federal tax credit due to low tax liability. Consider your budget, how long you plan to stay in your home, and your financial goals.

When you sell your home with a leased solar system, you have three options: transfer the lease to the new buyer (most common and usually requires the buyer to pass a credit check), buy out the lease and include the system in the home sale price, or have the leasing company remove the system (this option is less desirable). Most leases include a transfer clause. Some buyers view solar as a benefit, while others may hesitate about assuming a lease. Discuss the lease terms early in the sale process to avoid complications.

One of the biggest advantages of a solar lease is that the leasing company is responsible for all maintenance, repairs, and monitoring of the system throughout the lease term. This includes panel cleaning, inverter replacement, and any performance issues. If your system underperforms, the leasing company must fix it at no cost to you. This eliminates the maintenance burden and financial risk that comes with system ownership.

No, if you lease solar panels or enter a PPA, the leasing company claims the 30% federal Investment Tax Credit, not you. This is because they own the system. However, the leasing company factors this tax benefit into your lower monthly payments. If you want to capture the tax credit yourself, you need to purchase the system outright or with a solar loan. For homeowners with low tax liability, leasing can actually be more advantageous since they wouldn't fully benefit from the tax credit anyway.

Most solar leases run for 20 to 25 years, which aligns with the expected lifespan and warranty period of solar panels. At the end of the lease, you typically have three options: renew the lease at a reduced rate, purchase the system at fair market value, or have the leasing company remove the panels. Some leases offer a buyout option at year 7 or 10. Read the lease terms carefully, particularly the escalator clause, end-of-term options, and early termination fees.

The largest solar leasing companies in the United States include Sunrun (the nation's largest residential solar company), SunPower (known for high-efficiency panels and leasing options), Tesla Solar (offers leases with Powerwall integration), Vivint Solar (now part of Sunrun), and Palmetto. Availability varies by state. When comparing leasing companies, look at the monthly payment, escalator rate, performance guarantee, maintenance terms, and end-of-lease options. Get quotes from at least two companies to compare terms.