Cash purchase
Cash usually makes the project easiest to evaluate because there is one installed price and no loan interest or dealer fee. The homeowner owns the system and receives whatever ownership-based local benefits apply.
- Highest upfront cash requirement.
- No financing interest.
- Simple cost-per-watt comparison between installers.
Solar loan
A loan lets the homeowner own the equipment while spreading payments over time, but the financing structure can materially change total project cost.
- Compare cash price with financed price.
- Check APR, term and total payments.
- Ask whether dealer fees are built into the contract price.
- Do not judge a loan only by the first monthly payment.
Solar lease
With a lease, a third party generally owns the equipment and the homeowner pays for use of the system under a long-term contract. Review transfer, buyout, escalation and maintenance terms before comparing it with ownership.
Power purchase agreement (PPA)
A PPA generally charges the homeowner for solar electricity produced rather than for ownership of the equipment. The starting energy rate, annual escalator, contract length, transfer rules and grid-rate comparison drive the economics.
Compare total economics, not sales language
Put every option on the same timeline. Compare upfront payment, total contractual payments, expected electricity purchases from the grid, maintenance responsibilities, end-of-term ownership and home-sale transfer requirements.