Compare Your Solar Options
Loan Purchase*
Cash Purchase
Solar PPA
Solar Lease
Finance your solar investment
Purchase your solar system outright
Lock in low electricity rates
Rent your solar panel system
if have good credit and want more flexibility
if you have cash and want to maximize your savings
for fast savings from the power your panels produce
for fast savings and predictable monthly payments
Eligible for credits and incentives
Eligible for credits and incentives
Not eligible for credits and incentives
Not eligible for credits and incentives
You finance the panels
You own the panels
We own the panels, buyout option at year 5
We own the panels, buyout option at year 5
Invest with $0 down
Deposit due at signing
Prepayment optional
Prepayment optional
Credit check required
No credit check required
Credit check required
Credit check required
Low monthly loan payment
Final payment at due at activation
Low fixed rate for solar power
Low monthly lease payment
7-24 year terms
3-part payment schedule
20-25 year terms
20-25 year terms
4.49-11.99% APR
2.9% processing fee
Credit card fees may apply
Credit card fees may apply
High-efficiency panels
High-efficiency panels
High-efficiency panels
High-efficiency panels
Custom solar design
Custom solar design
Custom solar design
Custom solar design
Service plans available
Service plans available
Maintenance and service included
Maintenance and service included
Detailed project and performance tracking
Detailed project and performance tracking
Detailed project and performance tracking
Detailed project and performance tracking
Real-time chat support
Real-time chat support
Real-time chat support
Real-time chat support
Is it better to lease or buy solar panels for your home?
As a homeowner, the best solar investment is the one that's tailored to you—your home, energy needs, and financial goals. Let's compare the options!
Buy or lease? The cost of solar panels for home.
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You own the panels.
You own the power.
Customers who pay cash or finance their solar energy system have access to greater long-term savings and can leverage solar tax credits and incentives to offset the cost of their investment.
- Higher long-term savings
- Multiple financing options
- Eligible for tax credits and incentives
- Increases the value of your home
We own the panels.
You own the power.
Customers who enter a solar lease or Power Purchase Agreement can access the benefits of solar without any upfront investment or ongoing solar maintenance costs.
- Instant solar savings
- No investment costs to recoup
- Maintenance and monitoring included
- Lock in low rates
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Key factors to consider
To find the solar purchase or solar plan that best aligns with your goals, we'll look at a variety of factors including your location, energy usage and rates, eligibility for incentives, and monthly savings forecast.
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Where do you live?
While the environmental benefits of solar panels are universal, the financial benefits depend largely on your location. Homeowners living in states with net metering programs, attractive solar credits, or high utility costs are best positioned to save money with solar.
For this reason, Palmetto’s solar purchase, lease, and PPA options are only available in select states, and offerings vary by state. Contact a Solar Advisor to find out which options are available in your area.
What are your short- and long-term financial goals?
At Palmetto, we start each project with a solar savings forecast. If your roof is highly shaded, or you live in an area with low electricity rates, your forecasted saving may be low (or even negative), in which case we don’t recommend solar installation. If, however, your home shows a positive savings forecast, you may have multiple options to choose from based on your location and financial goals. To find the option that best aligns with your short- and long-term goals, we’ll start with a short series of questions.
- To gauge your potential savings, we might ask: Where do you live? How much do you spend on electricity now? Do you foresee any big changes in your energy consumption? How much money would you like to invest? What’s your credit score?
- To better understand your priorities, we might ask: How long do you plan to live in this home? If you’re considering a loan, how quickly do you intend to pay it off? Are you interested in solar lease and PPA buyout options? Are you more focused on monthly savings or long-term savings? Are you looking to increase your equity or home value?
How are electricity rates structured in your area?
As a general rule, homeowners with high electricity rates have a greater opportunity to save money with solar. This is because every kilowatt-hour (kWh) of electricity that is produced by your panels and used in your home offsets your grid electricity consumption by the same amount. The higher the cost per kWh, the more you’re positioned to save.
In areas with time-of-use rates, the cost of electricity is structured to increase during peak usage hours and decrease during low usage or off-peak hours. In this case, your savings potential will depend on when you consume electricity relative to both daylight hours (when your solar panels produce energy) and peak rate hours (when rates are the highest).
What about the electricity that is produced by your panels and not used in your home? This electricity flows back to the grid and may earn you credit toward your electricity bill. In areas with net metering or net billing programs, homeowners earn credits for the excess electricity produced. The rate and means by which homeowners are credited varies by utility provider and state. Connect with a Palmetto Solar Advisor to learn more about solar rate programs in your area.
Do you have cash on hand? If not, what’s your credit score?*
If you have cash on hand and want to maximize your potential for monthly and long-term savings, a cash purchase may be the way to go. Beyond the initial purchase costs, there are no monthly payments for the solar system—everything you save on your electricity bill goes directly to you. You also get to avoid loan fees or interest charges, reducing your total cost of investment.
But, sometimes short-term liquidity is preferred over long-term savings. If you’re looking to invest but prefer flexibility or cash liquidity, your credit score comes into play. Palmetto has several loan offerings available, ranging from 7-24 year terms and 4.49-11.99% annual percentage rate (APR). Homeowners with high credit scores are typically eligible for more favorable terms.
If you prefer to avoid the responsibility of solar ownership, you may be eligible for a solar lease or Power Purchase Agreement. As with solar loans, your credit score (and location) will determine your eligibility. But unlike a solar loan, a high credit score does not yield better terms—rates are contingent on system size and location.
Are you eligible for solar tax credits and incentives?**
Solar tax credits and incentives can significantly reduce your total cost of investment—making solar ownership a more accessible and attractive option for many homeowners. The federal Residential Clean Energy Credit (RCEC), for example, allows eligible homeowners to deduct up to 30% of the cost of their solar panel installation from their federal income tax liability for the year of purchase. However, you must have sufficient tax liability to benefit from the credit. State, municipal, and utility credits may also be available.
Because solar tax credits and exemptions are designed to incentivize the purchase of solar energy systems, homeowners who opt for a solar lease or PPA plans (both considered “third-party ownership” plans) are not eligible for these incentives. However, your solar provider (the owner) may be eligible for tax credits and incentives and can choose to leverage these savings to offer low-cost PPA and lease plans, like we do here at Palmetto.
Learn more about Solar Credits and Incentives, including eligibility and application requirements, in our Support Center.
How much energy can your solar panels produce?
The performance of any solar energy system is dependent on your roof and location. Weather, temperature, daily sunlight, roof pitch, roof orientation, shading, and a host of other factors impact solar performance.
At Palmetto, we use proprietary data and mapping software to calculate the solar potential of every square meter of your roof across every hour of the year. We know precisely where to place each panel and how much energy each panel can produce.
But how many panels do you need? To maximize your savings, we’ll look at your electricity consumption and rates relative to your solar costs and potential. In many cases, the system size best suited to maximize your savings will vary across solar lease and purchase offerings. Our solar advisors can help you weigh the options to determine which is right for you.
Do you live in an area with significant seasonal variations in solar performance?
Most solar homeowners experience seasonal variations in solar performance due to changes in daylight, temperature, cloud cover, snowfall, weather, etc. Across the U.S., solar performance tends to be highest in the summer and lowest in the winter.
If you’re looking to buy a solar energy system, rest assured! Palmetto factors these variations into your custom solar design and solar savings forecast. If, however, you’re interested in a solar lease or PPA, there’s more to consider. Homeowners living in areas with significant seasonal variations may want to go with a solar PPA, rather than a solar lease, as PPA payments are based on how much energy the solar system produces and thus emulate variations in seasonal performance.
Are you planning to sell your home?
Whether you buy or lease your panels, Palmetto has options available to simplify a transfer should you choose to sell your home.
- For homeowners who purchase their system: Solar-powered homes have been shown to stand out, sell faster, and earn more on the national real estate market. While you may have the option to transfer your solar loan to a new homeowner, it’s often easier to include the solar panels in the price of your home and apply any proceeds from the sale towards the remaining balance on your loan.
- For homeowners who enter a solar lease or PPA: Palmetto makes it easy to transfer your contract to a new homeowner. After five years, you’ll also have the option to buy out your solar energy system and roll some or all of the purchase costs into the sale price of your home.
If so, how soon are you planning to sell your home?
Generally speaking, the longer you own or lease a solar energy system, the greater your return on investment. However, solar panels may yield a positive return on investment even with a near-term sale. Here are some factors to consider.
- Homeowners looking to sell in the next few years may want to avoid a solar lease or PPA as it may be challenging in some markets to find a buyer willing to take on the remainder of your contract.
- Those looking to purchase a solar energy system may want to pay cash or choose a short-term loan with a high annual percentage rate (APR) to reduce total purchase costs and accelerate their return on investment.
- Profits include total electricity savings to date; solar credits or incentives earned; and any increase in home value or sales price.
- Costs include total cash, loan, lease, or PPA payments to date; and either the remaining balance on your loan or buyout costs for a solar lease or PPA.
Weigh the factors for yourself
What are your short-term and long-term financial goals?
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Do you have cash on hand? If not, what's your credit score?
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How are electricity rates structured in your area?
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Are you eligible for solar credits and incentives?
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How much energy can your solar panels produce?
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Do you live in an area with significant seasonal variations in solar performance?
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Are you planning to sell your home in the next five years?
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Not sure yet? Browse more resources
Learn more about your solar cost and savings potential with our solar resources.
Get your free Guide to Solar
Everything you need to know about going solar, including key concepts, qualifications, and financing options.
Go solar with Palmetto
Looking to buy? Learn more about the costs and benefits of going solar with Palmetto.
About Palmetto
We're on a mission to democratize clean energy, starting with better savings and support.
Solar Panel Payback Period (Guide)
View the factors that impact your solar panel payback period, and learn how to calculate your own.
What Happens At The End Of A Solar Lease?
Looking ahead: You can renew, buy out, or end your agreement. Learn more.
More Solar Resources
Browse blogs, support articles, videos, and tips to help you access clean energy.
Questions? Contact Us
Speak with a financial consultant
There are many options when it comes to financing your solar energy system. Whether you want to pay with cash, loan, PPA or lease, Palmetto can help you break down payment options so you can make an informed decision.