Cash ownership
Cash avoids interest and dealer fees and usually produces the clearest economics. The owner receives the energy value, controls equipment decisions and accepts maintenance and performance risk after applicable warranties.
Compare the installed quote with observed cost benchmarks, but do not treat an average dollars-per-watt figure as a target for every roof. Electrical upgrades, premium equipment, difficult access and local labor can justify differences.
Solar loans
A loan preserves ownership but can turn a reasonable equipment price into an expensive total obligation. Compare cash price, financed price, APR, term, dealer or origination fees, down payment, monthly payment and total scheduled payments. Ask whether the quoted payment assumes a future lump-sum prepayment.
For a new system placed in service in 2026, do not accept a payment schedule that assumes a new 30% homeowner federal credit under current IRS guidance.
Leases and PPAs
With a lease, the customer usually pays a scheduled amount for use of a third-party-owned system. With a PPA, payment is generally tied to generated kWh. Both can reduce upfront cost, but savings depend on the starting payment, annual escalator, utility tariff, production guarantee and contract length.
The owner normally receives owner-level incentives. The customer should evaluate only the promised net bill effect and contract obligations, not a credit advertised as if it were paid directly to the household.
Sale, transfer and exit terms
Before signing, read the transfer, buyout, early termination, roof-work, insurance, default and removal clauses. Ask what a buyer must qualify for, how long transfer takes and whether a buyout price is fixed or formula-based.
A low first-year payment can hide an escalator that compounds for decades. Model every scheduled year and compare it with a conservative utility-price scenario rather than assuming utility rates rise faster forever.