Is it better to buy or lease solar panels?

For most homeowners who plan to stay, buying. You keep the bill savings, the SRECs, and the county tax exemption, and the Department of Energy says a purchased system generally costs less in total than a loan, lease, or PPA.

Can I sell my house if I lease solar panels?

Yes, but the buyer usually has to take over the lease. The FTC recommends checking the transfer terms, notice requirements, and any buyer credit checks or fees before you list.

Who owns the SRECs on a leased system?

The contract decides. The FTC notes that lease and PPA customers do not own the system and cannot claim RECs, which go to the system's owner.

Learn: ownership

Buy or Lease Solar Panels?

Name: AJ Long Electric
Address: 2724 Dorr Ave, Suite 102, Fairfax, VA, 22031, US
Telephone: (571) 444-6886

Buy if you can. When you own the system, the production, the SRECs, and the county tax exemption are yours, and the house sells with equipment instead of a contract. A lease or PPA trades those for a lower upfront cost and a long agreement.

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Reviewed 2026-09-24

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Answer first

The short answer

Buying, with cash or a loan, gives you the system and everything it earns. Leasing or signing a PPA means a company owns the system on your roof and you pay it for the equipment or the power, often for 20 years. The Federal Trade Commission notes that lease and PPA customers do not own the system, cannot claim RECs, and are not the ones eligible for incentives; those go to the owner. The Department of Energy says a purchased system generally costs less in total than a loan, lease, or PPA.

Own: you keep the bill savings, the SRECs, and the county tax exemption.
Lease or PPA: lower upfront cost, a long contract, and payments that may rise over time.
The homeowner federal credit is zero for systems installed after December 31, 2025, whichever path you choose.
At resale, an owned system conveys with the house; a lease has to be transferred or resolved.

Three ways to put solar on your roof

The FTC's solar guide describes the three options homeowners are offered.

Own, lease, or PPA
Question	Buy (cash or loan)	Lease	Power purchase agreement
Who owns the equipment	You	The leasing company	The PPA company
What you pay for	The system	Use of the system, monthly	The power it produces, per kWh
SRECs	Yours	Set by the contract	Set by the contract
Maintenance	Your responsibility, with warranties	Usually the company, per the FTC	Set by the contract
At resale	Conveys with the house	Buyer takes over or contract is resolved	Buyer takes over or contract is resolved

What an owner keeps

When you own the system, every kilowatt-hour it produces offsets your bill. Dominion's net metering program credits your excess production against later use over a 12-month period, and that credit is on your account.

You also own the solar renewable energy certificates the system earns and can sell them through a broker. And in Fairfax County, you file for the county's five-year real estate tax exemption on the solar equipment with your permit application. The county's program is written for property owners who install certified solar equipment, and the owner files it.

Owning costs more at the start. Our published cash planning band is $2.40–$2.85/W, and a typical 8 to 12 kW Northern Virginia rooftop is $19,000–$34,000. Buying can mean paying cash or financing the purchase with a loan; either way, you own the equipment.

What to read in a lease or PPA

The FTC notes that lease contracts often run 20 years, that monthly lease payments may increase over time, and that ending a lease early can be difficult and expensive. A PPA is similar in length but you pay for the power, not the equipment, and you do not automatically get all the power the system produces.

Read these parts before you sign:

The payment schedule and any annual increase.
Who owns the SRECs and any other environmental attributes.
Who maintains and repairs the system, and how fast.
What happens to the roof if the panels must come off for a reroof, and who pays.
The end-of-term options: renew, buy, or removal, and what each costs.
Transfer terms if you sell the house: notice, buyer credit checks, and fees.

The federal credit in 2026

The homeowner credit under Section 25D does not apply to systems installed after December 31, 2025. Under the statute, a system counts as installed when installation is completed, not when it is paid for or contracted. For a homeowner who installs in 2026, the federal credit is zero, whether the system is bought outright or financed.

A leasing or PPA company is a business, and how it handles its own taxes is its business. Do not choose a lease because a salesperson says a credit is built into the price. Compare the total you will pay over the contract with the purchase price, and ask for everything in writing. We do not give tax advice; a CPA confirms how any credit applies to you.

What happens when you sell the house

An owned system conveys with the house. Dominion's net metering page says it will continue to net meter and transfer the net meter to the next owner. The buyer gets the equipment, the remaining manufacturer warranties, and the production history.

A lease or PPA needs the buyer to take over the contract or the seller to resolve it. The FTC lists the questions to ask: can the contract transfer to the buyer, do you need to give the company written notice first, and will the buyer have to meet credit requirements or pay fees. Those steps take time in a sale, so plan for them before you list.

How we sell solar

AJ Long Electric installs systems the homeowner owns. Our own crews do the installation and the electrical work, and a written proposal lists the equipment, the modeled production, and the price. There is no commissioned sales team. If you already have a leased system and need an electrician for panel work, a battery, or an EV charger, we work around it and coordinate with the leasing company when its equipment is involved.

Straight answers

Questions

Is it better to buy or lease solar panels?: For most homeowners who plan to stay, buying. You keep the bill savings, the SRECs, and the county tax exemption, and the Department of Energy says a purchased system generally costs less in total than a loan, lease, or PPA.
Do I get the federal tax credit if I buy solar in 2026?: No. The Section 25D homeowner credit does not apply to systems installed after December 31, 2025. The homeowner credit is zero for 2026 installs.
Can I sell my house if I lease solar panels?: Yes, but the buyer usually has to take over the lease. The FTC recommends checking the transfer terms, notice requirements, and any buyer credit checks or fees before you list.
Who owns the SRECs on a leased system?: The contract decides. The FTC notes that lease and PPA customers do not own the system and cannot claim RECs, which go to the system's owner.

Sources

Next step

See what owning your system costs

We quote systems you own, with the equipment, modeled production, and price in writing. The quote is free.