Imagine this: you’ve just found your dream home in Temecula, but when you tour the property, you notice something sitting on the roof, solar panels. The listing agent proudly calls them “energy-saving,” but you’re left wondering: Are these panels leased? Owned? Or part of a power purchase agreement (PPA)? And more importantly, what does that mean for my wallet?

With new construction in California now requiring solar, and more resale homes already equipped, understanding the difference between leasing, purchasing, or signing a PPA isn’t optional anymore—it’s essential.

Let’s break down each option, the pros and cons, and what they really mean for you as a homeowner.

Option 1: Solar Lease

A solar lease works a lot like leasing a car—you pay a fixed monthly fee for panels you don’t own.

Pros:

• Little to no upfront cost.

• The solar company maintains and repairs the panels.

• Predictable monthly payments.

Cons:

• No added home value since you don’t own the system.

• No federal or state tax credits.

• At resale, leases can complicate the deal because the fixed monthly payment impacts a buyer’s debt-to-income ratio.

👉 Best for: Homeowners who want solar savings without the upfront investment—but not ideal if you plan to sell soon.

Option 2: Solar Purchase (Outright or Financed)

Buying panels means full ownership—either through a lump-sum payment or financing.

Pros:

• Adds tangible resale value to your home.

• Qualifies for tax credits and incentives.

• Once paid off, your electricity is essentially free.

Cons:

• High upfront cost (often $20K–$30K).

• Financing increases your debt-to-income ratio.

• Maintenance is your responsibility—if something breaks, it’s on you.

👉 Best for: Homeowners planning to stay long-term who want to maximize ROI and take advantage of tax incentives.

Option 3: Power Purchase Agreement (PPA)

Often confused with leases, PPAs are different. You don’t pay a fixed monthly fee—you agree to buy electricity at a per-kilowatt-hour rate set by the solar company.

Pros:

• Usually no upfront cost.

• Bills are tied to actual energy production (so higher in summer, lower in winter).

• Easier to transfer in resale since it doesn’t count as a fixed monthly debt.

Cons:

• You don’t own the system, so no tax credits.

• Contracts often include escalator clauses that raise rates yearly.

• Resale still requires convincing the buyer that the PPA rate is a good deal.

👉 Best for: Homeowners who want immediate energy savings and flexibility, but don’t care about long-term ownership.

Pro Tip: Don’t Forget Batteries & Net Metering

With California’s new Net Energy Metering (NEM 3.0) rules, selling energy back to the grid isn’t as profitable as it used to be. Pairing solar with a battery system is becoming the smarter play, otherwise, you could end up selling energy for pennies in the afternoon and buying it back at triple the rate in the evening.

The Bottom Line: Solar Isn’t One-Size-Fits-All

Solar can absolutely save you money, but the way you set it up makes all the difference. Leasing, buying, and PPAs all have advantages, but each comes with trade-offs around cost, ownership, and resale.

If you’re buying or selling a home in the Temecula Valley (or anywhere in SoCal), make sure you understand exactly what solar arrangement is attached to the property. The wrong setup can add hidden costs, or the right one can boost your home’s value.

Thinking About Buying or Selling a Solar Home?

This is where working with an agent who understands the nuances of solar contracts matters. I’ve helped dozens of families in the Temecula Valley and greater San Diego markets navigate solar leases, PPAs, and owned systems, so you don’t get blindsided at closing.

📲 Call, text, or email me anytime.
💻 Or schedule a 1-on-1 Zoom consultation

Whether you’re two weeks, two months, or two years away from moving, I’ll help you make sense of the numbers and make the right decision for your family.

Watch the full guide below!

Why Work With a Local Expert?

Buying or selling a home with solar isn’t as simple as checking a box. A lease, purchase, or PPA can completely change how lenders view your debt-to-income ratio, how buyers perceive value, and even how smoothly a sale closes. Misunderstand one of these contracts, and you could end up with unexpected costs—or a deal that falls through.

That’s where working with a local real estate expert comes in. As one of the top agents in the Temecula Valley and greater San Diego markets, I’ve guided countless clients through the fine print of solar leases, PPAs, and owned systems. I know how to spot red flags, explain the pros and cons clearly, and position your home so buyers see solar as an asset, not a liability.

For sellers, my marketing goes beyond glossy photos. I highlight the right details, like whether panels are owned, transferable, or under warranty, to attract serious buyers and secure top dollar. For buyers, I help you run the numbers so you know whether solar is saving you money or adding hidden costs.

⭐ Check out my five-star reviews on Google and Zillow to see how I’ve helped families just like yours buy and sell homes with confidence, even when solar was part of the equation.