Solar Lease vs Loan vs Cash: What Actually Makes Sense in Texas?

When you start getting solar quotes in DFW, you will likely be presented with several ways to pay. Some companies will lead with the lease. Others will push a specific loan product. A few will ask whether you want to pay cash. Each option sounds reasonable on its own — but they are not equal, and the differences have real consequences for your finances, your home value, and your ability to sell your house down the road.

Here is a straight comparison of every payment option available for solar in Texas in 2026, and which ones actually make sense.

Solar Lease vs Loan vs Cash in Texas: A Real Comparison.

Option 1: Pay Cash

Paying cash means buying your solar system outright, the same way you would buy a car or appliance. No monthly payments, no interest, no lender involved.

What it costs: At $2.10 per watt installed, a 10 kW system runs $21,000 and a 12 kW system runs $25,200. You pay that amount upfront and own the system completely from day one.

The financial case: With DFW electricity at $0.18 per kWh, a well-sized system saves a typical household $1,800–$2,400 per year depending on usage. At those savings, a cash-purchased system pays for itself in 9 to 12 years — after which you are producing electricity at effectively zero cost for the remaining life of the system, which is typically 25 to 30 years.

Cash also eliminates interest entirely. Over the life of a 30-year loan, a homeowner pays significantly more than the original system cost. Cash buyers avoid that entirely.

Best for: Homeowners who have the capital available and want the cleanest, highest-return investment with no ongoing obligations.

Option 2: Finance with a Solar Loan

A solar loan lets you go solar with no money down and pay for the system over time, similar to a home improvement loan. You own the system from day one — which is the critical difference between a loan and a lease.

Two loan options are commonly available in Texas in 2026:

	30-Year Loan	20-Year Loan
Interest rate	8.0%	7.7%
APR	8.8%	8.8%
10 kW ($21,000)	$154/mo	$172/mo
12 kW ($25,200)	$185/mo	$206/mo
10 kW + 1 Tesla ($36,000)	$264/mo	$295/mo
12 kW + 1 Tesla ($40,200)	$295/mo	$329/mo

The 30-year loan keeps monthly payments as low as possible. A 10 kW system at $154 per month is right at or below what most DFW homeowners are already paying in electricity — making it easy to go solar with minimal impact on monthly cash flow. The trade-off is a longer repayment period and more total interest paid.

The 20-year loan carries a slightly higher monthly payment but a lower interest rate, and you own the system free and clear 10 years sooner. Total interest paid is significantly less than the 30-year option. For homeowners who can absorb the higher payment, the 20-year loan almost always delivers better long-term value.

The key point on both: Your loan payment is fixed for the life of the loan. Your Oncor electricity rate is not. As grid rates continue to rise at $0.18 per kWh and above, the value of your fixed solar payment grows year over year.

Best for: Homeowners who want to own their system, keep upfront costs at zero, and have flexibility on monthly payment amount.

Option 3: Solar Lease

A solar lease is an agreement where a third-party company installs panels on your roof and you pay them a monthly fee to use the electricity those panels generate. The solar company owns the equipment. You do not.

Why we do not recommend leases:

You never own the system. Every dollar you pay goes to someone else's asset. At the end of the lease term — typically 20 to 25 years — you have built no equity and own nothing.

Selling your home becomes complicated. When you sell a home with a leased solar system, the buyer either has to assume the lease or you have to buy out the remaining contract. Many buyers walk away when they discover a lease is attached to the property. This is not a hypothetical — it is a documented problem that has affected home sales across Texas.

The savings are smaller than they appear. Lease payments are typically lower than a loan payment, which makes them look attractive upfront. But the lease company captures a portion of the savings your panels generate. You are paying for electricity at a rate set by someone else's contract, not zero-cost production.

Best for: Nobody we would recommend solar to. The lease structure benefits the leasing company more than the homeowner.

Option 4: Prepaid Lease (Also Called a PPA)

A prepaid lease — sometimes marketed as a Power Purchase Agreement or PPA — is a variation where you pay a large lump sum upfront for the right to use solar panels the leasing company still owns. It sounds like a cash purchase, but it is not.

The core problem is the same as a standard lease: You pay significant money and still do not own the equipment on your roof. If the leasing company goes out of business, changes its terms, or you want to refinance your home, you are dealing with a third-party ownership situation that you paid to create.

Texas has seen several high-profile solar company bankruptcies in recent years. Homeowners with prepaid leases from failed companies have been left in complicated legal situations — not homeowners who purchased their systems outright.

Best for: Not something we recommend. If you have the capital for a large upfront payment, a cash purchase gives you ownership and all the same benefits without the third-party complications.

Solar Lease vs Loan vs Cash in Texas: Side by Side

	Cash	30-yr Loan	20-yr Loan	Lease
You own the system	Yes	Yes	Yes	No
Upfront cost	Full price	$0	$0	$0
Monthly payment	None	$154–$185/mo	$172–$206/mo	Varies
Total interest paid	None	High	Moderate	N/A
Payback period	9–12 years	~20+ years	~15+ years	Never
Home sale complications	None	None	None	Yes
Long-term value	Highest	Good	Very good	Lowest

Which Option Is Right for You?

If you have the capital: Pay cash. The return is highest, the simplicity is greatest, and you own a valuable asset outright.

If you want zero upfront cost: A solar loan is the right move. Choose the 30-year option if keeping monthly payments low is the priority, or the 20-year option if you want to pay less interest overall and own the system sooner.

If someone is pitching you a lease or PPA: Ask what the cash or loan options look like before you sign anything. You are entitled to a full comparison, and a company that only wants to talk about leases is not putting your interests first.

The bottom line in Texas in 2026: ownership is the only structure that delivers real long-term value from solar. Whether you get there with cash or a loan is a financial planning decision. Whether you own the system at all is not.

Call or text: 972-675-7725 Email: office@solartimeusa.com Or schedule online: Schedule a Free Consultation →