Your four options
- Cash purchase: highest upfront cost, highest lifetime savings. You get the Illinois Shines value and utility rebate (through your installer) but no federal credit.
- Solar loan: own the system with little or nothing down. Savings depend on your interest rate versus your electric bill.
- Lease: $0 down and a fixed monthly payment. The installer owns, insures and maintains the system.
- Power purchase agreement (PPA): $0 down and you pay per kWh the system produces, usually below your utility rate.
Why leases and PPAs got more competitive
When homeowners could claim 30% back, buying usually won on lifetime savings. Today only business owners of solar systems may claim a federal credit, so leases and PPAs can carry a pricing advantage that a purchase can't, at least while that business credit lasts.
Questions to ask before signing a lease or PPA
- Does the payment or rate escalate each year, and by how much?
- Who handles roof work if panels need to come off?
- What happens if I sell the house? Can the agreement transfer?
- Is there a production guarantee?
- How are Illinois Shines and the utility rebate reflected in my price?
Sources
This guide is general information, not tax, legal or financial advice. Incentive programs change, so confirm current terms with your installer, your utility and a tax professional.