The Four Ways to Pay for Solar
There are four main ways to get solar on your roof: pay cash, take a solar loan, sign a lease, or sign a power purchase agreement (PPA). Each has real trade-offs. Here they are, honestly.
Option 1: Cash
You pay the full system price up front. A typical 8kW Orlando system runs $14,000 to $21,000.
Pros
- Lowest total cost. No interest, no fees. Every dollar of savings goes to you.
- Fastest payback. Usually 7 to 10 years in Orlando.
- You own everything. All the power, all the savings, all the home value.
- Simplest home sale. Owned, paid-off panels are a selling point — see our selling guide.
Cons
- Big check up front. Not everyone has $14,000 to $21,000 sitting around.
- Your money is tied up in the roof instead of investments or savings.
Best for
Homeowners with savings who want the maximum return and the simplest deal.
Option 2: Solar Loan
You borrow the system cost and pay it off monthly, like a car loan. You own the system from day one.
Pros
- You own the system and keep all the bill savings and net metering credits.
- Low or no money down. Many solar loans start with nothing due at signing.
- Monthly payment often beats the old electric bill. If your loan payment is $150 and your old bill was $200, you save from month one.
Cons
- Financed prices are higher than cash prices. Lenders charge dealers fees that get baked into your price. Always ask: what is the cash price?
- Interest stretches payback. A 10-year loan at typical rates adds real cost over cash.
- It is debt on your home. Some loans place a lien. Understand what you are signing.
Best for
Homeowners who want ownership without the big up-front check — and who compare the true financed price, not just the monthly payment.
Option 3: Solar Lease
A company installs panels on your roof, owns them, and you pay a fixed monthly lease payment — usually less than your old electric bill.
Pros
- Little or no money down.
- Lower bill from day one in most cases.
- The company handles maintenance — it is their equipment.
- The company claims the Section 48E commercial tax credit — the one federal credit still available — which helps them offer you a lower rate.
Cons
- You do not own the system. You never build equity in it.
- Savings are smaller. The company keeps a cut of the value your roof produces.
- Complicates home sales. The buyer must qualify to take over your lease. Some buyers walk away.
- Payments escalate. Many leases raise your payment a little every year. Read the escalation clause.
Option 4: Power Purchase Agreement (PPA)
Like a lease, but instead of a fixed monthly payment, you pay for the power the panels produce — at a set rate per kilowatt-hour, usually below your utility rate.
Pros and cons
Nearly identical to a lease: no money down, lower bills, company-owned equipment, company claims the 48E credit. The difference is you pay per unit of power instead of a flat monthly fee. If the system underperforms, you pay less — which shifts some risk to the company.
Our lease vs. buy guide digs deeper into who gets the tax credit and whether leasing makes sense for you.
Red Flags in Any Financing Offer
- Only showing the monthly payment. Always ask for the total price and total cost over the full term.
- The dead 30% tax credit. If any offer — loan, lease, or PPA — mentions you claiming the 30% federal credit on a 2026 install, it is wrong. The credit ended. Period.
- Balloon payments or surprise fees buried in the contract. Read every page.
- Pressure to sign today. Real financing survives a night of sleep.
Our Honest Recommendation
If you can swing it, cash or a straightforward solar loan gives you the most savings and the fewest headaches. Leases and PPAs make sense if you want solar with no money down and do not mind smaller savings — just go in with your eyes open about the trade-offs.
Talk Through Your Options
Fill out our contact form and we will lay out what each option would actually cost for your home — side by side, no spin.