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Solar Sales and Services

Are solar panels worth it? | Fidelity – Fidelity Investments

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How to pay for solar panels

There are 3 basic ways to put solar panels on your home:

Buy the panels outright: Choose a solar company to install panels on your home’s roof. This is the most effective way of going solar, but it also has the highest upfront cost. You can pay the upfront cost in cash or using financing.

Solar lease: You enter a financial arrangement with a company that installs a solar panel system on your home but retains ownership of the system. You pay a fixed monthly amount to use the system and receive any electricity it produces.

Enter a Solar Power Purchase Agreement (PPA): A developer company arranges for the design, permitting, financing, and installation of a solar energy system on your property at little to no cost to you. The company will bill you for the electricity the panels generate, based on measured metering. Your monthly cost is generally lower than what’s charged by a utility company.

Overall, purchasing a system provides the greatest savings and flexibility, especially when it comes to selling your home, but it requires higher upfront investment.

There are pros and cons to each option:

PROS CONS
Purchase
  • Little to no ongoing electricity cost.
  • Federal and state tax credits may be available.
  • May increase the value of the home without increasing property taxes.
  • Higher upfront cost or ongoing monthly payments.
  • You are responsible for maintenance, including damage to the roof. Some solar companies provide roof damage maintenance for the first 10–15 years.
Solar lease
  • No upfront costs.
  • Predictable monthly energy prices.
  • You are not responsible for maintaining or repairing the solar panels.
  • Not eligible for incentives such as federal tax credits.
  • Can make selling your home difficult.
  • Solar leases include price escalators to reflect the increase in electricity prices, so your costs will increase over time. 
  • Your system may not get the required maintenance, but you are still responsible for monthly lease payments regardless of production. 
Solar Power Purchase Agreement
  • No upfront costs. Predictable energy prices and net metering benefits.
  • Not responsible for maintaining or repairing the solar panels.
  • Not eligible for incentives such as federal tax credits.
  • Lower long-term savings compared with purchasing a system.
  • Residential PPAs can make selling your home difficult.
  • Most PPA contracts are long-term contracts, typically 10–25 years.

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