Ownership and what it changes
The basic legal difference is ownership: a loan usually means you own the system; a lease or power purchase agreement (PPA) means a company owns the panels and you pay them. That distinction affects several practical things: who gets any tax credits, who takes responsibility for repairs beyond warranty, and what happens when you sell the house. Ownership can give you more control, but it also means you handle or arrange for maintenance and any future upgrades. Always confirm how the contract treats incentives and who is listed as the owner of the system.
Key contract items to compare
Before signing, compare these concrete terms across quotes: contract length, monthly payment structure and any annual increases, early termination fees or buyout terms, who pays for repairs or roof access, production or performance guarantees and how shortfalls are handled, ownership of renewable energy credits (RECs), and transfer rules if you sell the home. Look for clarity on monitoring and reporting — how will you see production numbers and how are disputes handled? Different companies handle these items differently, so scan contracts for specific language rather than relying on a verbal summary.
Cost and financing considerations that matter
Don’t assume a lower monthly payment is always better. A lease might have a lower payment but could include annual price increases or limit your ability to claim incentives. Loans usually mean higher upfront or monthly costs but can increase long-term value if you keep the system and your home sale is straightforward. Compare the total expected cash flows in plain terms: upfront costs, typical monthly charges, and any fees for early exit or transfers. Ask how credit checks, interest, and lender requirements affect the offer, and remember that final pricing and terms depend on location, roof condition, your utility bills, financing, and installer quality.
Installer, warranty, and post-sale responsibilities
The written warranty and the company behind it matter as much as the financing. Verify who provides the product and workmanship warranties, who you call for repairs, and whether warranty claims require the original installer. Check whether equipment replacement is covered and whether warranties transfer to a new homeowner. Research the installer’s track record: licensing, insurance, customer reviews, and complaint history. Companies such as Sunrun, Sunnova, or Palmetto Solar may have different service models than local installers — ask how service requests and outages are handled under your specific contract.