Should I Lease or Purchase Solar?
Compare Cash, Loan, Lease, & PPA Options
Posted: 6.23.2026
When you’re ready to go solar in Missouri or Illinois, one of the biggest decisions isn’t whether to go solar, it’s how to pay for it. Whether you lease or buy solar panels for your home, you open the door to lower energy bills, long-term energy control, and a more environmentally responsible way to power your home.
StraightUp Solar makes this easy by offering four options to install solar energy on your home:
- cash purchase
- solar loan
- solar prepaid lease
- solar power purchase agreements (PPA)
Each option has unique benefits depending on your budget, ownership goals, and preference for maintenance responsibilities.
Solar Financing Options at a Glance
Here’s a snapshot of how each option compares:
| Feature | Cash Purchase | Loan Financing | Prepaid Lease | PPA* |
|---|---|---|---|---|
| Reduce Energy Bills | ✔︎ | ✔︎ | ✔︎ | ✔︎ |
| Net Metering** | ✔︎ | ✔︎ | ✔︎ | ✔︎ |
| Production & Product Warranties | ✔︎ | ✔︎ | ✔︎ | ✔︎ |
| $0 Downpayment | — | ✔︎ | — | ✔︎ |
| Own the System/Add Equity to the Home | ✔︎ | ✔︎ | — | — |
| Maintenance Included | — | — | ✔︎ | ✔︎ |
| Receive Available Incentives & Rebates | ✔︎ | ✔︎ | ✔︎ | — |
| Monthly Solar Payments | — | ✔︎ | — | ✔︎ |
| Good for the Planet | ✔︎ | ✔︎ | ✔︎ | ✔︎ |
*At this time, our solar PPA is only available for Illinois homeowners in Ameren Illinois and ComEd territory.
**Net Metering is a state-regulated utility arrangement where solar PV system owners send their unused electricity back to the grid in exchange for credits. These credits offset the cost of electricity when their panels aren’t producing energy—essentially treating the grid as a virtual battery bank.
Cash Purchase
Own System from Day One
Benefits
Paying upfront offers the deepest long-term financial benefits and the simplest relationship with your solar PV system. This option is ideal for homeowners looking for the fastest payback, full ownership, and the best long-term return on investment.
What to Expect
- Own the solar PV system outright from day one
- Receive all applicable solar incentives
- Maximize savings and home equity
- Covered by performance and product warranties
Considerations
- Many homeowners get a home equity loan or line of credit with their financial institution. StraightUp Solar’s payment schedule provides a phased approach to your purchase.
- Keep in mind that as an owner, you will be responsible for any service and maintenance your system may require. You’ll be covered by a 25-year product warranty and StraightUp Solar’s 10-year performance guarantee. We’re one of the few local companies with a full-time Service Team, here to care for your system long-term.
Solar Loan
Own System with Flexible Payments
Benefits
Financing with a solar loan makes ownership accessible without an upfront cost. This option is ideal for homeowners who want the benefits of ownership–including solar incentives–but prefer low monthly payments.
What to Expect
StraightUp Solar partners with Clean Energy Credit Union, a mission-driven lender that provides affordable clean energy loans that reduce the cost of living for its members while also contributing to a healthier environment.
They offer a flexible Everyday Solar loans with:
- 100% financing
- $0 downpayment options
- 12-, 15-, or 20-year terms
- Competitive rates
- 60 days until first payment
- No prepayment penalties
- Re-amortize your loan at minimal or no cost
- Rate Promise (guarantees your interest rate will only go down before closing)
You receive all system incentives, grow equity in your home, and enjoy stable monthly payments that don’t escalate over time.
Considerations
- As the system owner, you will be responsible for any service and maintenance of your system, which is typically minimal. We’ve got your back, with a 25-year product warranty, StraightUp Solar’s 10-year performance guarantee, and a dedicated Service Team.
Prepaid Solar Lease
Long-Term Savings & Downpayment
Benefits
For homeowners in Missouri and Illinois, StraightUp Solar is pleased to offer a lease with the homeowner’s best interest in mind—our PowerUp Prepaid Lease. We leverage our membership in the Amicus Solar Cooperative to retain ownership of the solar system, thereby taking advantage of the Federal Investment Tax Credit available to businesses and passing those savings along to the homeowner. With the PowerUp Prepaid Lease, we reduce the cost of the system by 20-25%.
This option is ideal for homeowners who can make a large downpayment for the system, still want to benefit from the Federal Investment Tax Credit, prioritize long-term savings above all else, want zero maintenance responsibilities throughout the contract, and the assurance that StraightUp Solar will care for the system long-term.
What to Expect
A PowerUp Prepaid Lease gives you a solar PV system on your home with:
- Downpayment of 75-80% of the system cost
- Solar Renewable Energy Credits claimed by homeowner (for Illinois customers)
- No system ownership requirements
- No monthly payments for first 5 years
- Option to purchase the system at the start of year 6 at Fair Market Value* OR continue lease for remaining 10 years of contract term at nominal monthly rate which covers any possible service & maintenance costs
- Ability to remove or purchase system when lease ends in 15 years
- Installation and service needs handled by StraightUp Solar—a critical advantage given our 20-year history and full-time Service Team
Considerations
- If you move, you’ll work with the lease owner to transfer the contract or you can choose to buy the system.
*Fair Market Value is a fair, independent calculation of the value of the remaining 10 years of electricity produced by your system. The purchase price will be uniquely low because your upfront lease payments are subtracted from the Fair Market Value.
Illinois Solar PPA
$0 Down & Lower Bills Now
Benefits
For homeowners in Illinois, our solar PPA option offers the quickest way to reduce energy bills without an upfront investment. This option is ideal for homeowners who want immediate savings, predictable solar energy production, and zero maintenance responsibilities throughout the contract.
Not all PPAs are created equal. We were incredibly selective in launching our PPA with fair, predictable, and transparent terms.
What to Expect
A solar PPA gives you a solar PV system on your home with:
- $0 down
- Maintenance included
- No system ownership requirements
- Predictable monthly payments
- Option to purchase the system after year 5
- Possibility of an annual escalator rate that increases your monthly payments over time (rate is typically less than predicted annual utility rate increases)
- Ability to remove or purchase system when lease ends in 25 years
You’ll make monthly payments to a third party financier who owns the system. You receive the net metering benefits from your utility. The energy bills savings you generate from this can help offset your monthly lease payments.
Considerations
- Because you don’t own the system, the lease company receives any federal or state incentives. Your lease is more affordable, because they pass along the savings.
- If you move, you’ll work with the lease owner to transfer the contract or you can choose to buy the system.
- Who you install with makes a difference. Learn more about 5 questions to ask your installer before signing a solar lease.
How do I decide?
Matching Your Financing Option to Your Goals
As electricity rates climb, solar offers a powerful solution, by locking in your energy costs and limiting your exposure to future increases. With a solar energy system, you produce electricity at a predictable cost, offering long-term peace of mind and financial stability. Finance it in a way that feels right for you.
I have cash and want the highest possible ROI.
If you have the capital and want to treat solar as a high-performing financial asset, a Cash Purchase remains the gold standard. By owning the system, you reduce your monthly power bill and maximize your home’s value. For Illinois neighbors, owning your system allows you to reduce your costs by taking advantage of incentives you may be eligible for, like the Illinois Shines SREC program and Smart Inverter Rebate.
This option is best for homeowners who want to own the “mini power plant” on their roof (or property) and maximize their ROI.
I want to own my energy with $0 down.
If you prefer to keep your savings in the bank, a Solar Loan allows you to build equity from day one. You simply swap a rising utility bill for a stable, fixed loan payment. Eventually, the loan is paid off, and you’re left with decades of free electricity. This option often appeals to budget-conscious owners who prioritize energy independence and building long-term home equity.
This option is best for homeowners who want to own the “mini power plant” on their roof (or property) without an large upfront investment.
I want the “best price” without the responsibility of service.
The PowerUp Prepaid Lease is a great fit if you have the cash but prefer a “hands-off” experience. Because this system is owned by a mission-aligned cooperative, you receive a reduced upfront price that isn’t available through residential ownership. With 5 years of professional service and maintenance included, you just enjoy the solar energy worry free.
I want immediate savings with zero maintenance.
The Solar PPA is the simplest, lowest-friction path to solar. There is no debt and no upfront cost. You pay only for the power the panels produce at a rate lower than what your utility charges. Best for neighbors who want lower energy bills today and prefer that StraightUp Solar handles the maintenance.
Must Reside in Ameren Illinois or ComEd Territory.
Get Trusted Guidance from Our Local Solar Experts
StraightUp Solar has served more than 3,000 homes and businesses across Illinois and Missouri since 2006. Half our team is NABCEP certified, the gold standard in solar, and we lead with a values-driven approach to long-term care for our solar community. We’re here to help you make the solar decision that truly fits your home.
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Whether you choose to purchase or lease your solar, our Project Developers will walk you through the numbers, the savings, and what makes the most sense for your goals.
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