The appeal of entering a solar lease often comes from the lower monthly payments. Those who enter a solar lease typically get quoted a smaller monthly payment than their current electricity rates.
While paying less per month is great, solar leases often cost more than other solar panel financing options. Solar leases cost more because that lower payment is over 20 to 25 years, which means you never have a period when you don't have a payment. Both cash and solar loans have a higher solar ROI that provides customers years without electricity bills, making them both more solid financial choices.
Additionally, those who enter into solar lease agreements don't own the solar array. Because the customer doesn't own the array the solar company gets the federal and state incentives instead of the homeowner.