Why can the financed price be higher than the cash price?

Interest is not always the only financing cost. Some loans include lender or dealer fees that increase the financed amount, sometimes in exchange for a lower advertised interest rate.

What happens to the agreement if I sell my home?

Owned systems usually transfer with the property, while loans, leases, and power-purchase agreements can have different payoff, assumption, or transfer requirements. Review those terms before signing.

Overhead view of two homeowners and a solar advisor reviewing financing paperwork at a backyard deck table

SOLAR FINANCING / 2026

Three ways to pay for solar.

Cash, a solar loan, or a lease. They can look similar in month one and end up thousands of dollars apart, and only two of them mean you own the system.

Cash, loan, and lease compared line by line
What each path means for ownership and incentives
The agreement terms to read before signing

Compare the three options ↓

CASH / LOAN / LEASE

Compare the options
side by side.

The monthly payment is one line. Ownership, total paid, and what happens when you sell the house matter just as much.

01Starting point

Cash purchase

Lowest long-term financing cost

Upfront: Highest
Ownership: Day one
Payment: No monthly loan payment

Solar loan

Ownership with lower upfront cost

Upfront: Often lower
Ownership: Day one
Payment: Varies by lender and contract

Lease or PPA

Lower upfront commitment

Upfront: Often low
Ownership: Third party
Payment: Contract-based payment

“Starting point” is a general comparison, not a recommendation or credit decision. Review rate, term, dealer fees, escalators, transfer rules, warranties, and total paid.

BEFORE YOU SIGN ANYTHING

Six numbers to find in any solar agreement.

If an offer makes these hard to find, that tells you something too.

Compare my options

DSP / REVIEW SHEETRESIDENTIAL SOLAR

Cash price

The actual equipment and project price before financing.

□

Financed amount

The principal after lender fees or other financed costs.

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Total paid

Every scheduled payment across the full term.

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Payment changes

Escalators, re-amortization, or other future adjustments.

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Ownership

Who receives incentives and controls the equipment.

□

Exit terms

Payoff, transfer, sale, cancellation, and removal rules.

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Review actual contract documents with qualified legal, tax, or financial professionals as appropriate.

MOVING WITH SOLAR

What happens if you move.

Plenty of homeowners move before a solar agreement ends, so it's worth asking about early. A system you own outright simply sells with the house, often as a selling point. With a loan, the balance is usually paid off at closing or folded into the sale price. A lease or PPA works differently: the buyer typically has to qualify for and take over the agreement, which can slow a sale down. The agreement also controls who receives net billing credits. Whatever path you choose, get the transfer terms in writing before you sign.

Compare real numbers with Direct Solar Pros ↗

Financing questions

Common questions about paying for solar.

The ownership structure and the full agreement matter as much as the payment on page one.

Browse every FAQ

The best structure depends on available capital, monthly cash flow, ownership goals, incentive rights, total cost, and how long you expect to own the home. Compare the complete agreements, not only the payments.