What home solar costs, and how people pay for it

Cash

Paying cash avoids financing costs and means you are not making payments on a solar loan. The upfront cost is higher, so the right comparison depends on the project price, available incentives, and how long you expect to own the home.

Loan

A solar loan spreads the project cost over time rather than requiring the full amount upfront. Interest rate, loan term, fees, and other financing terms affect the total amount you pay.

Compare the financing terms as well as the initial monthly payment so you understand the longer-term cost.

Lease or PPA

With a lease or power purchase agreement, a third party generally owns the solar equipment and the homeowner pays according to the agreement rather than purchasing the system outright.

The important comparison is the full agreement, including payment terms, rate changes or escalators, maintenance responsibilities, contract length, and what happens if you sell the home.

Who owns the system, and who is responsible for it?

Who owns the system can affect financing, incentives, maintenance responsibilities, and what happens later.

• Cash or loan. You generally own the system. Available incentives, financing obligations, and responsibility for service depend on the project and the applicable agreements.
• Lease or PPA. A third party generally owns the system. Maintenance responsibilities, incentives, payments, and other obligations depend on the agreement.

There isn’t one right financing structure for every homeowner. Before signing, make sure you understand who owns the equipment, who is responsible for service, and what obligations continue over time.

What happens if I sell the house?

What happens when you sell the home can depend on how the Solar system was paid for and the terms of any financing or third-party agreement.

• Owned outright. Ask how system ownership is handled when the property is sold.
• Loan. Review the loan terms to understand what happens to the remaining balance if you sell the home.
• Lease or PPA. Review the agreement for transfer, buyer qualification, buyout, notice, and other requirements that may apply when the home is sold.

Ask about sale and transfer terms before you sign. If an agreement includes transfer requirements, fees, buyer qualification, or a buyout option, make sure you understand them in advance.

What should I ask about escalators and fees?

Four questions worth asking before you choose a financing option:

• Is there an escalator, and what is the rate? If payments can increase over time, ask how the increase is calculated and what the payment would be in both the first and final year.
• What is the total over the full term? Compare the total expected cost, not just the starting monthly payment.
• What fees exist beyond the payment? Ask about any origination, dealer, transfer, early termination, or other fees that may apply to the agreement.
• What is guaranteed, and what is an estimate? Ask which figures are contractual commitments and which are projections based on assumptions that can change.

We do not publish a guaranteed savings number because actual savings depend on factors that can change, including electricity use and utility rates.

What can an online estimate tell you?

An online estimate can be useful for understanding whether a project is worth exploring, but it cannot establish every property-specific detail. Roof area, setbacks, obstructions, shading, roof condition, electrical requirements, and final system design may all affect the project.

We don’t need all of those details right now. Online guidance can give you a useful starting point, and the appropriate later review can establish the property-specific details needed before the work is planned and pricing is finalized.

What actually decides this

• Your electricity use. This helps determine how much solar capacity may make sense for the home.
• Your utility. Utility rates, programs, and applicable rules can affect the financial picture.
• Available incentives and programs. These can vary by state, utility, project, and eligibility, and they can change over time.
• Roof condition. The condition of the roof can affect how solar work should be planned. Roof age alone does not determine what should happen first.
• How you pay. Cash, a loan, a lease, or another available financing structure can change your upfront cost, payments, total cost over time, and other obligations.

What it costs, and how long it takes

Recent SunnyMac project data shows a median of about 18 weeks from signed agreement to permission to operate. Much of that timeline can involve permitting and utility interconnection, so timing varies by project, municipality, and utility.

The 30% federal tax credit for homeowners who buy their system ended December 31, 2025. Leases and PPAs are different: the financing company owns the system and still receives federal incentives, which are reflected in your rate.

How this works where you are

Electricity rates, available programs, utility requirements, and project timelines can vary by state and location. In our four states: New Jersey $0.18 per kWh, Pennsylvania $0.17, Maryland $0.17, Delaware $0.16. New Jersey also pays $77 per MWh generated through the SuSI program.

Does it cost the same in every state?

Rates and timelines differ enough at the state line to change payback. These are our own figures, not regional averages.

Figures verified September 8, 2026. Unverified figures are omitted rather than estimated.

Sources: Delaware · Maryland · New Jersey · Pennsylvania