Switching to solar is one of the best moves you can make. However, the decision to own or lease your system can change the overall financial picture.
Federal Incentives for Solar Panels Have Shifted
Throughout 2025, homeowners could claim a federal tax credit on purchased solar panel systems. In 2026, that credit has now expired. Leasing companies can still claim it, but the credit is claimed for their business and rarely passed on to customers. Most customers still end up paying the full value of the system, regardless of the tax break the leasing company receives. Solar panel ownership offers more reliable long-term value when you combine it with state and local incentives that still exist.
Long-Term Financial Benefits of Solar Panel Ownership
Owning your solar system means that your electricity is essentially no extra cost for you for decades after you pay it off. Systems are also often able to raise your total home value. You can also take full advantage of net metering then where extra energy credits offset your future bills. Leasing solar panels reduces the costs up front, but owning solar panels usually has a higher total savings over time. Solar panel ownership is even more beneficial for homeowners who plan to stay in their home for more than 7-8 years or more.
Control and Flexibility with Solar Panel Ownership
Owning your solar panel system gives you full control over design choices and future upgrades or battery storage. Leased systems may restrict the modifications you can make and can make it more difficult to sell your home since the new owner must take up the lease or you may have to pay off the loan before sale.
Leasing Solar Panels Still Has Advantages
Leasing your solar panels isn’t nonsense altogether, as some people simply don’t want a huge upfront cost. These benefits are great for those who want convenience.
However, it’s important to keep in mind that leased panels may be less appealing to the buyer’s market if you plan to sell your home. Leasing solar panels also means that you’re stuck with a monthly payment in addition to electrical payments for 20-25 years.
Overall, leased panels often offer lower lifetime return on investment (ROI) compared with owning solar panels.
Purchase a Solar Panel System from Redtail Solar
While leasing provides low upfront costs and has a convenience factor, owning your solar system offers a greater long-term reward with more control.
Redtail Solar specializes in solar panel ownership solutions to help homeowners get the best savings and be energy independent. Contact us today to learn more about purchasing a solar panel system.
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