Solar options
Four ways to pay for solar, compared honestly
Ownership, a loan, a lease, or a power purchase agreement. Each suits a different situation, and not every option is available to every homeowner.
Side by side
How the pathways differ
The same system can be paid for in very different ways. What changes is who owns it, who holds the incentives, and what you are committed to.
| Option | Who owns it | Upfront cost | Incentives | Main trade-off |
|---|---|---|---|---|
| Cash purchase | You | Highest | You hold any that apply | Ties up capital |
| Solar loan | You | Low to none | You hold any that apply | You owe the loan regardless of production |
| Lease | The provider | Often none for qualified homeowners | Held by the provider | You do not own the system |
| Power Purchase Agreement | The provider | Often none for qualified homeowners | Held by the provider | You pay per unit produced, and rates may escalate |
One at a time
What each pathway is actually like
The table above shows how they differ from each other. This shows what living with each one involves.
Cash purchase
You buy the system outright and own it from day one. There is no financing cost because there is no financing.
Often suits: Situations where capital is available and ownership is the goal.
What to weigh
- You hold any incentives that apply to your situation, and you are responsible for claiming them
- There is no monthly payment attached to the system
- It ties up capital that could be doing something else, and that trade-off is yours to weigh
- You own the maintenance relationship as well as the asset
Availability is not universal
Which pathways you can actually choose depends on the provider, your property, your credit, and your utility. We will tell you which are open to you rather than list all four and let you assume.
Choosing between them
Best fit depends on your situation, not on the product
None of the four is better than the others in general. These are the questions that actually separate them — and the answers are specific to you, which is why we work them through against your bill rather than in the abstract.
How long do you expect to stay in the property?
An owned system generally transfers with the property. A lease or PPA usually has to be transferred to the buyer or settled, and the terms vary by provider.
Would you rather own the equipment or pay for the output?
Ownership carries the incentives and the maintenance relationship. Paying for output moves both to the provider, along with the upside.
What else would that capital be doing?
Cash costs least in total over the full term because there is no financing cost, but only you can weigh that against the alternative use of the money.
Do you want a fixed payment or a payment tied to production?
A loan or lease payment does not move with what the system makes. A PPA payment does, in both directions.
Is backup power part of what you want?
That is a storage question rather than a payment question, and it changes the system design regardless of which pathway you choose.
Which pathways are actually open to you?
Availability is decided by the provider, your property, and your utility. We establish which apply to you rather than list all four and let you assume.
These questions do not produce an answer on their own and nothing here selects a pathway for you. They are the ones we work through with you once we can see your actual bill and your property.
Battery storage sits alongside all four
Storage is an addition rather than an alternative. It can provide backup during an outage and can shift when you use what you produce. It also adds cost and changes the design, and whether it pays off depends on your utility's rate structure and how often your area loses power.
Bundling eligible improvements
Depending on the project and financing program, eligible solar, battery, roof, or related improvement costs may be combined into one financing package. Whether that is possible is determined by the provider, the program terms, and your qualification — it is not available on every project, and we will tell you which applies to yours rather than assume.
Options questions
Frequently asked questions
Which option is cheapest?
Over the full term, cash usually costs least in total because there is no financing cost, but it requires the most capital upfront. Which is best for you depends on what you would otherwise do with that money and how long you plan to stay in the home.
What is an escalator?
Some leases and PPAs increase the payment or the per-unit rate by a set amount each year. It may still compare favourably against utility rate increases, but you should know whether your agreement has one and what it is before signing.
What happens if I sell the house?
It depends on the pathway. An owned system generally transfers with the property. A lease or PPA usually needs to be transferred to the buyer or settled, and the terms vary by provider. Ask before you sign, not when you list.
Do I qualify for zero upfront cost?
Zero-upfront-cost options may be available to qualified homeowners. Qualification is set by the provider, not by us, and it is not universal. We will find out rather than assume.
Compare them against your own bill
A general comparison only goes so far. Yours depends on what you actually pay.