Loan, lease, or cash: how to compare solar financing honestly

## The trap: "lower than your electric bill" Almost any solar proposal can be structured to look "lower than your electric bill" in year one. That comparison hides escalators, dealer fees, and the true financed amount. Insist on seeing total cost over the term, not just month one. ## Cash purchase Highest lifetime savings, no financing cost, you own the federal tax credit directly (assuming you have federal tax liability to apply it against). Requires capital and comfort with the up-front outlay. ## Solar loan You own the system and claim the federal tax credit. Watch for **dealer fees** — a percentage added to the cash price to buy down the interest rate. Ask for the cash price and the financed price side by side. ## Lease or PPA The finance company owns the system and the tax credit. You pay a monthly amount (lease) or per-kWh rate (PPA). Escalators (often 1.9–2.9% per year) matter a lot over 20–25 years. Understand the buyout, transfer-on-sale, and end-of-term terms before signing. ## The apples-to-apples question Ask every provider: "What is the total amount I will pay under this option over the full term, in today's dollars, and what do I own at the end?" Then compare.