[Originally published on February 9, 2021, | Updated on August 20, 2025]
Solar isn’t one-size-fits-all. Every home and every family approaches energy differently, and how you pay for your solar system can be just as important and varied as which panel or battery brand you choose. Some homeowners want the low upfront cost and hands-off approach of a solar lease, also known as Third-Party Ownership (TPO). Others prefer the flexibility and expansion potential that come with full ownership, whether through a solar loan or a cash purchase.
The good news is that no matter which path you take, all options can include solar batteries. Whether installed as a standalone backup system or paired with solar panels, batteries extend your savings, protect you from outages, and provide greater independence from the grid.
When people think about solar, they often focus on equipment: the brand of panels, the type of inverter, or whether to add a Tesla Powerwall or another battery option. But how you finance your solar panel or solar battery investment is equally critical. Your payment structure affects not only how much you save, but also your level of ownership, warranty coverage, home value, and ability to alter or add to the system down the road if your energy demands grow.
With utility rates in Arizona and across the country climbing steadily — on average 2–3% every year according to the U.S. Energy Information Administration — the cost of doing nothing is acceptance of a higher electric bill every year from now on. Locking in a predictable solar payment—or eliminating payments entirely with a cash purchase—is one of the smartest ways to protect against inevitable rate hikes, while ensuring reliable backup power during outages when paired with a battery.
A solar lease (also known as Third-Party Ownership or TPO) is one of the most accessible ways to go solar. Generally with zero out-of-pocket costs, homeowners can begin saving immediately without taking on the full responsibility of ownership. Instead, you make a predictable monthly payment to use the power from the system to offset your bill, while the lease provider owns, monitors, and maintains the system for the duration of the lease term - typically 20 years.
Utility rates are only moving in one direction: up. Over 20 years, even modest increases compound into thousands of extra dollars. A solar lease helps you avoid those escalating costs by locking in a lower, predictable monthly bill for the life of the agreement. If you include a battery in your lease, you’re not just saving money — you’re also gaining resilience. When blackouts strike, your home can stay powered with stored energy. What’s more, you can use that stored energy to offset the most expensive on-peak hours, further reducing your monthly power bill.
Another major benefit of leasing is comprehensive, long-term coverage. Most manufacturer warranties cover panels for 20–25 years but cover batteries, inverters and other ancillary components for much less. With a solar lease, monitoring, maintenance, and repairs are included for the entire term, typically 20 years or more. That means batteries and inverters are protected well beyond their standard warranty, drastically reducing the risk of surprise repair bills.
With a lease, the provider takes on the responsibility of performance monitoring, maintenance, and component replacements. Everything is handled for you. For many families, this hands-off convenience is just as valuable as the financial savings.
Most solar leases include a performance guarantee. If the system ever produces less than promised, the lease provider works to make it right — either by fixing the issue or crediting you for the shortfall.
When your lease ends, you have options. You can extend your agreement, upgrade to the latest technology, or purchase the system at a fair market value (in some cases available after as few as five years). And if none of those options fit, the system can be removed.
Because leases are not homeowner-owned, they can be harder to transfer when selling a home. Sellers typically have two options:
In short: a solar lease delivers savings, resilience, and peace of mind — all without a penny down but you have less freedom for system expansion and there are additional hurdles if you decide to sell the property.
Read More: Should I Buy Out My Solar Lease Or Stay In It? A Homeowner’s Guide
A solar loan blends affordability today with the benefits of ownership tomorrow. Much like a home improvement loan, a solar loan lets you finance your panels and batteries with low or even zero upfront cost. Once the loan is paid off, the system is fully yours, and so are all the savings.
With a solar loan, you’re essentially paying down an asset. Each monthly payment builds equity in your solar system, just like a mortgage does for your home. Once the loan is complete, your solar panels and batteries become a long-term investment that continues producing value for decades.
Unlike a lease, where tax credits and incentives go to the lease provider, a solar loan ensures that any available incentives belong to you. Incentives can help to lower the total cost of your system over time, making ownership even more attractive.
Solar loan payments are typically fixed, so you don’t face the annual escalations sometimes built into leases. This predictability makes budgeting simple and shields you from the volatility of utility rate increases.
Ownership also means flexibility. As your family’s needs change — maybe you purchase an electric vehicle, build an addition, or decide to install a pool — you can expand your system by adding more panels or batteries. With a loan, those decisions are in your hands, not a provider’s.
Selling your home? A solar loan can be transferred to the new owner with relative ease, and because the system adds value to the property, many buyers see it as a benefit. This makes loans an attractive middle ground between leasing and paying cash since leases are more difficult to transfer and do not add value to the home value
In short: A solar loan gives you the benefits of ownership with the convenience of manageable, predictable payments.
Read More: Selling Your Home With Solar Panels: Expert Guide 2025
For those ready to make an upfront investment, a cash purchase delivers the most flexibility. Paying cash means you own your system outright from day one, giving you complete control.
Without monthly financing or lease payments, every kilowatt-hour your system produces is money saved. Over the life of a system, cash buyers typically realize the highest return on investment. You also keep all available tax credits and incentives, further reducing your total cost.
An owned solar and battery system boosts your home’s value. Unlike a lease, which doesn’t add property value, ownership is seen as a property upgrade by buyers — much like a remodeled kitchen or new roof. This can make your home more attractive if you ever decide to sell. What’s more, and owned system is easier to transfer. There’s no 3rd party ownership, so the attached solar panels simply pass cleanly to the new owner as part of the property sale.
Ownership means freedom. Want to add another battery in five years? Thinking about more panels when you buy an EV? With a cash purchase, you have total independence to expand and adapt your system as your lifestyle evolves.
In short: paying cash is the most cost-effective way to lock in decades of clean, reliable energy while boosting your property’s value.
Here’s how the three paths stack up side by side:
|
Option |
Upfront Cost |
Ownership After Term |
Incentives |
Maintenance / Support |
Includes Batteries |
Best Fit |
|
Solar Lease (TPO) |
$0 |
No (unless buyout option is exercised) |
Goes to provider |
Full-term (20+ yrs, incl. batteries) |
Yes |
Typically $0 down, hands-off savings. No property value bump. |
|
Solar Loan |
Low or $0 |
Yes (after payoff) |
You keep them |
You handle after OEM warranty expires |
Yes |
Ownership with flexible payments. Adds equity to property value. |
|
Cash Purchase |
Higher |
Yes (immediate) |
You keep them |
You handle after OEM warranty expires |
Yes |
Higher upfront cost freedom to expand and adds equity to property value. |
No matter how you choose to pay, solar — with or without batteries — helps you save money, protect against ever-rising utility rates, and gain resilience against blackouts. All of this while reducing your carbon footprint and living more securely and comfortably.
Whether you prefer the zero-down simplicity of a solar lease (TPO), the balanced approach of a solar loan, or the maximum flexibility of cash ownership, the important thing is to take control of your energy future. Rising utility costs aren’t slowing down, but solar gives you the power to lock in savings and independence for decades to come.
Our team is here to help guide you through your options and design a solution that fits your goals. Schedule a free consultation today and start your journey toward clean, reliable energy.