Solar Financing Options
General information on the three common ways homeowners pay for solar — not personalized financial or tax advice.
Cash purchase
You pay the full system cost upfront. No interest, no monthly payment, and you own the system and any equity value it adds outright. This is the highest upfront cost option, and — for systems installed in 2026 — no longer comes with the 30% federal tax credit that used to apply (see Incentives & Tax Credits).
Solar loan
A lender covers the system cost and you repay it over time, typically with interest. You still own the system from day one. Loan terms, interest rates, and qualification requirements vary significantly by lender — ask for the full amortization schedule, not just a monthly payment figure, before comparing offers.
Lease or power purchase agreement (PPA)
A third-party company owns the system installed on your roof. With a lease, you pay a fixed monthly fee for the equipment; with a PPA, you pay per kilowatt-hour the system actually produces. Either way, you generally don’t own the system and can’t claim ownership-based tax benefits yourself — but the owning company may still qualify for a commercial tax credit and could pass some value through in your rate. Ask specifically how that works before signing.
Questions to ask about any financing offer
- What is the total cost over the full term, not just the monthly payment?
- Is there a prepayment penalty or escalator clause (a lease/PPA rate that increases over time)?
- What happens to financing or a lease if you sell your home?
- Who is responsible for maintenance and repairs under this specific option?
This page is general information, not financial or tax advice. Talk to a licensed provider and, if needed, a tax professional about your specific situation.
See What Solar Costs at Your Address
Figures on this page are general. The only way to know what solar costs on your roof in Ohio is a quote based on your address, your roof and your actual power use.
Check Your OptionsAdvertising disclosure: this link leads to a partner service that matches homeowners with independent solar providers. We may be paid when you request a quote.