Solar Lease vs Loan: Which Creates More Problems for Homeowners?

## Solar Lease vs Solar Loan: The Real Comparison When homeowners go solar, they typically choose between a lease (or PPA) and a loan. Both sound appealing on paper, but both generate significant consumer complaints. Understanding the difference is critical before you sign anything. ## How Solar Leases Work — And Why They Cause Problems With a solar lease or PPA, you don't own the panels. You're renting them from the solar company, typically for 20-25 years. The company owns the equipment on your roof. **The biggest lease complaints:** - **Escalator clauses:** Most leases include annual payment increases of 2-3%. Over 25 years, your monthly payment can nearly double. - **Home sale complications:** Buyers must qualify to assume your lease or you must buy it out — often costing $15,000-$30,000. - **UCC liens:** Leasing companies file liens against your property, which can complicate refinancing. - **Poor performance with no recourse:** If the panels underperform, you still pay the full lease amount. ## How Solar Loans Work — And Their Problems With a solar loan, you own the panels and the loan is either secured (home equity) or unsecured. Sounds better, right? Not necessarily. **The biggest loan complaints:** - **Dealer fees:** Lenders like GoodLeap charge dealers 15-40% of the loan amount, which gets rolled into your balance. A $30,000 system can become a $45,000 loan. - **Inflated system costs:** Because dealers get paid based on loan size, systems are routinely overpriced. - **Long loan terms:** 25-year solar loans mean you're paying interest for decades, often paying more than the system is worth. - **Negative equity:** If you sell your home before the loan is paid off, you may owe more than the panels add in value. ## Which Is Harder to Exit? Leases are generally harder to exit. You're locked into a 20-25 year contract with a company that owns equipment on your roof. Getting out requires either a buyout, a home sale with lease transfer, or proving material misrepresentation. Loans are slightly easier — if you can pay off the loan, you own the panels free and clear. But the dealer fee problem means many borrowers owe far more than expected. ## The Bottom Line Neither option is inherently "safe." Both have generated thousands of consumer complaints. The key is understanding exactly what you're signing before you do it. [Get a free contract review at BreakYourSolarContract.com](https://breakyoursolarcontract.com) if you're already locked into a lease or loan you regret.