Choosing Between Buying and Leasing Solar
A Canadian Homeowners Guide
As electricity rates continue to rise, more Canadian homeowners are considering switching to solar power. But one of the biggest decisions is how to acquire the system: do you buy (own) the solar system outright (or via loan/financing), or do you lease it (or enter a third-party ownership contract)? Each path has advantages, but also risks and hidden traps, especially when you consider Canadian rebates, property value, home resale, equipment choice, and long-term savings.
What Does “Buying” vs “Leasing” a Solar System Mean?
Buying (Owning) Your Solar System
When you buy or finance a solar system, you or your mortgage/loan provider becomes the owner of the equipment. That means:
- You pay the upfront cost (cash) or take out a solar loan/financing plan.
- After installation, you own the system, you control it, you get the benefits of the system’s output and any incentives tied to ownership.
- You’re responsible for maintenance, monitoring, and any long-term servicing (though many warranties cover major components).
- Because you own the system, it becomes part of your home’s assets.
Leasing/Third-Party Ownership
Leasing means the solar company (or a third-party investor) installs the system on your roof (or property), retains ownership of the equipment, and you pay a monthly lease payment (or a power-purchase-agreement rate) for use. Some features:
- You pay little or nothing up front (often zero or minimal down).
- The leasing company is responsible for equipment ownership (and typically maintenance in the contract).
- You get the electricity from the system (i.e., the system offsets your grid usage) but you do not own the panels.
- At the end of the lease term (often 15-25 years) there may be end-of-term options (buy-out, renew, system removal) depending on the contract.
- Some of the major trade-offs: you may not be eligible for incentives/rebates (since you aren’t the owner). Also, the system design, equipment, and control are often in the hands of the lessor.
Why Rebates and Incentives Matter (And Who Actually Receives Them)
One of the most important and often overlooked differences between buying vs leasing is who qualifies for the rebates or incentives.
In Canada, various provincial and federal incentive programs (rebates, tax credits, net-metering credits, etc.) are often structured to benefit the owner of the system. If you lease the system, you likely are not the owner; the leasing company is. Therefore:
· If you lease, the system owner (third party) may claim the rebates, not you.
· That means you may miss out on valuable rebates that you would otherwise receive if you purchased the system.
· If you buy the system yourself, you are eligible to apply for rebates and incentives that reduce your cost and improve your long-term savings.
Impact On Property Value and Selling Your Home
If You Own the System
· When you own a solar system, it becomes part of your home. Many studies show that homes with owned solar systems can sell faster and at a premium.
· The system is an asset. Future homeowners can benefit from the reduced electricity costs immediately.
· Owning the system means no contract to transfer, and no ongoing lease payments for the new owner.
If You Lease the System
· Because the system is not owned by you, the home sale becomes more complicated. You must address what happens to the lease: transfer it to the new buyer (which the buyer needs to agree to), buy out the lease, or terminate it. The extra steps can deter buyers.
· Some buyers may be reluctant to take on an existing lease with years remaining. They may discount the home or ask for compensation.
· Also, as noted in some anecdotal sources, while owned systems may boost home value, leased systems may not add the same value (or may add little).
Bottom line: If you plan to stay in your home long-term and want maximum value retention, owning the system is generally better. If you lease, you might face additional hurdles when selling.
Cost Comparison: Short-Term Vs Long-Term Savings
Leasing: Lower Up-Front Cost, But Higher Total Cost Over Time
One of the attractions of leasing is that the barrier to entry is low: often you pay nothing or very little upfront, the installer owns the panels, you just pay a fixed monthly fee.
Buying: Higher Initial Cost, But Better Lifetime Savings
If you buy the system (pay cash or finance), you’ll pay more upfront, but over the lifetime of the system you generally save more. As panels produce for 25-30+ years, and you’re not making monthly lease payments, the pay-back is stronger.
In Canada, you also benefit from rising electricity rates: by owning the system you lock in lower costs (from grid) and thus the return improves as utility rates increase over time.
Some Numbers and Things to Watch
· If you plan to stay in your home a long time (10+, 15+ years), buying tends to yield a better return.
· If you expect to move in a few years, or cannot afford the upfront cost, leasing might look attractive, but you must factor in sale/transfer complexity and missing incentives.
Ask: What is the estimated pay-back period? What are the assumptions for electricity rate increases? What are the lease escalation terms (if leasing)? What happens at the end of the lease?
For a Canadian homeowner, you should look at: provincial rebate eligibility, net-metering programs, equipment lifespan, warranty terms, panel degradation. A well-designed system can last 25-30+ years.
System Design, Equipment Choice, and Control
Another often overlooked dimension: when you own vs lease, how much control do you have over the system design, equipment choice, and future upgrades?
With Owned Systems
· You choose or influence the panel brand, inverter type, system size, layout on your roof, and whether you include battery storage.
· Because you own the system, you can plan for future upgrades (e.g., adding a battery) or changing equipment if you’re motivated.
· You can optimize the system for your particular home (roof orientation, shade issues, future EV charging, etc).
With Leased Systems
· The leasing company typically selects the equipment (panels, inverter, monitoring system), often choosing the “standard” package that suits their cost and maintenance model.
· The contract may limit upgrades or changes you can make. If you want to add battery storage later, the lease may not allow or may charge extra.
· Because the system is owned by another entity, your flexibility is reduced.
In a Canadian context this means: if you plan to add an EV charger, look at battery storage, or maximize panel efficiency in a shady or non-ideal roof situation, owning gives you more freedom to tailor the system. Leasing may lock you into a “one size fits all” design.
So, if you plan to lease a system, ask questions like:
· What brand of panels/inverters will you install if I buy? If I leased, what would I get?
· Will the system be sized optimally for my home, or will the leasing company use a standard size?
· If in the future I want to add storage or an EV charger, what are my options under both ownership vs lease?
Pitfalls And Sneaky Tactics to Watch Out For
While solar is a great option for many homeowners, the contract details matter, especially when leasing. Here are some of the biggest pitfalls and sneaky tactics to watch out for:
1. Fine Print Lease Escalation
· Monthly lease payments may increase yearly (e.g., 1-3% escalator) to cover inflation, maintenance, etc. Over a 20-year term, that adds up. Some sources warn of this hidden cost.
· A lease may lock you into paying whether or not the system performs as you hoped (fixed payment even if production is lower).
2. Rebate/Incentive Loss
· If you are not the owner, you lose the right to claim rebates or incentives (as mentioned above). Some sales pitches highlight “zero down” leases but gloss over the fact you forgo rebates.
· Some Canadian provincial programs may require you to be the equipment owner to access the rebate. Check carefully.
3. Resale Headaches
· A leased system stays on your roof when you sell the house (unless you buy it out or remove it). The buyer must “assume” the lease or you must make it go away. That adds complexity.
· Some buyers simply discount the home because they see the solar lease as a liability rather than an asset.
· The process of transferring the lease may involve credit-checks, approval from the leasing company, or termination fees.
4. Equipment Limitation or Unrevealed Performance
· In a lease, you might end up with lesser-quality panels or older technology because the leasing company uses the lowest cost equipment they can justify. You may not have a choice.
· Panel performance degrades over time. You’ll want panels with good warranties and low degradation rate. With leasing you might be locked into less optimal equipment.
· Some lease contracts may limit your rights to monitor production, add battery storage, or expand the system.
5. End-Of-Term Obligations
· At lease expiry you may have to choose: renew the lease, buy the system (often at a price you’ll want to negotiate), or remove the system. Removal might cost you money.
· If you plan to stay in the home fewer years than the lease term, you may pay payments for years and then leave the home still paying for, or still tied to, the system.
6. Hidden “Lowball” Savings Projections
· Some sales pitches emphasise the low monthly lease payment but don’t show the full lifetime cost comparison vs buying.
· Always ask for full “lifetime cost of ownership” scenarios under both buy and lease. In Canada this is especially important given electricity rate trends, rebate programs, system lifespan.
7. Transferability and Roof/House Changes
· If you move house, you may be prohibited from moving the system, or forced to terminate the lease and pay penalties.
· If your roof needs replacement, you may be restricted in removing/reinstalling a leased system. The leasing company may have terms governing who pays.
8. Ambiguous Maintenance Responsibilities
· In leasing agreements, “maintenance included” is often promised, but you should ask: what maintenance is covered? Who pays for inverter replacement after 10-15 years? What about panel replacement if degradation is higher than expected?
· Also ask: what happens if the system under-performs (due to shading, orientation, etc.)? Is your payment reduced? (Often not).
By contrast, when you purchase the system, you have more control, and the calculations are clearer (you see upfront cost, you understand the savings). That doesn’t mean buying is free of risk, you still must assess the quality of installer, warranty, panel performance, roof condition, etc. But you arguably have less “surprise obligations” than a long lease.
Why Owning Is Often the Smarter Option
We’ve covered the contrast. Here’s why, from a Canadian homeowner’s perspective, owning the system often makes more sense (while acknowledging leasing may still have a role for some).
· Eligibility for Canadian rebates/incentives: You capture these only if you own the system. Missing them means a higher effective cost.
· Increasing electricity rates: In Canada, many utilities increase rates over time. That means you’ll avoid paying the grid’s rising costs by having your own system. Owning locks that benefit more completely.
· Home value/resale: Because you own the system, you’re more likely to have an asset that enhances value or appeal to buyers. Leasing brings complexity at sale time.
· Long-term savings: With ownership you pay upfront (or via financing) but afterwards your cost is low or nil (except maintenance). Lease payments continue for the term, reducing your net benefit.
· Control and design flexibility: If you want a system sized for an EV, battery storage, or future expansion, ownership gives you more flexibility.
· No “subscription” model: A lease is in effect a long subscription payment for use of the system. Ownership converts future electricity costs into a one-time capital investment (plus maintenance).
· Risk mitigation: With ownership you avoid the risk of the leasing company withdrawing, changing terms, or imposing new fees at end-term.
Why Choose Solar Power Store
When you’re ready to go solar, Solar Power Store makes the process simple, transparent, and cost-effective for Canadian homeowners. Unlike one-size-fits-all leasing options, we empower you to own your system, maximize available rebates, and save on long-term energy costs.
Our team guides you through every step, from system design and equipment selection to installation, ensuring your solar system is efficient, durable, and optimized for Canada’s unique climate. With high-quality panels, inverters, and accessories, plus reliable warranties, and service, we help you take control of your home’s energy future.
Make the switch to solar today with Solar Power Store and start enjoying lower electricity costs, increased home value, and true energy independence.