A solar lease allows you to install solar panels on your home with no upfront cost. Instead of purchasing the system, you enter into a lease agreement with a solar provider, paying a fixed monthly payment for the use of the solar equipment.

This option is ideal if you can't take advantage of tax incentives, as it allows you to start saving on energy bills right away without the financial burden of purchasing the system. While you won’t own the system, you still benefit from lower energy costs, and the payments are often lower than your current utility bill. However, the payments typically increase annually, depending on the escalator rate in your lease agreement.

In situations where upfront costs or tax credits aren't available to you, a solar lease can be a smart choice to still make the switch to solar energy.