Solar Loans vs. Leases vs. PPAs:
What’s the Best Financing for DFW?

The most common barrier to going solar isn’t the technology — it’s the upfront cost conversation. At $20,000–$35,000 for a complete system, writing a check isn’t realistic for most households. But there are three distinct ways to finance solar, and each has a completely different risk/reward profile. Here’s an honest breakdown of all three.

Option 1: Solar Loan — Own Your System

A solar loan lets you install a system with little or no money down and repay it over 5–25 years. You own the system outright, which means you keep all Texas exemptions and any increase in home value. Note: the 30% federal residential ITC expired after December 31, 2025 — loan buyers in 2026 no longer receive that credit.

The math that makes loans work in DFW

A $28,000 system financed at 5.99% over 25 years is roughly $180/month. If your current Oncor bill is $220/month, you’re still cash-flow neutral to positive from day one — and when the loan is paid off in year 25, you have years of near-free electricity ahead. Without the ITC, payback periods stretch to 8–11 years vs. the 5–7 years buyers saw before 2026, but the long-term return remains strong.

Option 2: Solar Lease — Fixed Monthly Payment, No Ownership

With a lease, a third party owns the system and installs it on your roof. You pay a fixed monthly amount — typically lower than your current utility bill — in exchange for the power the system produces. You don’t own the system, but the leasing company may still claim a commercial tax credit (Section 48E, available through 2027) and can pass some savings through as lower rates.

Who leases make sense for

• Homeowners who want guaranteed savings with zero upfront or equipment responsibility
• Those who want guaranteed savings with zero upfront or equipment responsibility
• Homeowners who plan to sell within 5–7 years (though lease transfer to new buyer can complicate sales)

The downside: over 20–25 years, lease customers typically save significantly less than loan customers, because the financial benefits of ownership flow to the leasing company instead.

Option 3: Power Purchase Agreement (PPA) — Pay Per Kilowatt-Hour

A PPA is similar to a lease, but instead of a fixed monthly payment, you pay a per-kWh rate for the electricity the system produces. That rate is typically 10–30% below your utility rate, with a small annual escalator (1–3% per year).

PPAs are popular in Texas because the energy-only billing feels familiar — like a private utility. You’re essentially locking in lower electricity rates for 20–25 years, hedging against Oncor rate increases.

Like leases, you don’t own the equipment and don’t receive tax credits. But you also have no exposure to system underperformance — if the panels produce less than expected, you just pay less.

Factor	Loan	Lease	PPA
Own the System	✓ Yes	✗ No	✗ No
Federal Tax Credit	✗ Expired (post-2025)	Provider may claim 48E	Provider may claim 48E
Home Value Increase	✓ Full benefit	Partial / unclear	Partial / unclear
25-yr Total Savings	Highest	Moderate	Moderate
Upfront Cost	$0–$5,000	$0	$0
Complexity of Sale	Low	Higher (transfer)	Higher (transfer)

Our Recommendation for Most DFW Homeowners

Even without the federal ITC, owning your system through a solar loan typically delivers the strongest long-term financial outcome. You capture the Texas property tax exemption, own an asset that adds home value, and pay $0 for electricity once the loan is repaid. Payback periods are longer than they were pre-2026, but the 25-year savings picture remains compelling.

Leases and PPAs are worth considering when ownership feels like too much commitment, or when the provider’s 48E commercial credit pass-through genuinely makes the monthly rate competitive. We offer all three and will show you side-by-side numbers — not steer you toward the option that earns us the best margin.