Buying, leasing or financing solar

How you pay for solar affects how much you save, who owns the system, and what happens when you sell your home. There is no single best option, but some carry more risk than others.

Paying cash

You pay the full price upfront and own the system outright. This gives the lowest total cost and the shortest payback period, because there is no interest. All bill savings and any rebates go to you.

The downside is the large upfront cost, which ties up money you might need elsewhere.

Loans

A loan from a bank, credit union or lender lets you spread the cost. You still own the system and keep the savings.

Interest increases the total cost and lengthens payback. Compare the total amount you will repay, not just the monthly payment. Secured loans, such as a home equity line of credit, may have lower rates but use your home as security.

Property-tax financing

Some municipalities offer energy upgrade loans repaid through your property tax bill. These are similar to programs sometimes called PACE elsewhere. Examples include Toronto's Home Energy Loan Program (HELP) and Ottawa's Better Homes Loan Program.

These programs often offer competitive rates and longer terms. Rules on what happens when you sell, and on availability, vary. Check directly with your municipality for current terms.

Leases and power purchase agreements

With a lease or power purchase agreement (PPA), a third party owns the system on your roof. You pay a monthly fee, or pay for the power it produces, usually with little or no upfront cost. Ontario's net metering rules allow third-party ownership arrangements.

The appeal is a low upfront cost. The trade-offs are that you don't own the system, the company keeps much of the long-term value, and contracts can be long and complex. Escalating payments can erode savings over time. Selling your home may require the buyer to take over the contract.

Comparing the options

How to compare offers fairly

• Ask for the cash price in every case, then compare the full cost of each financing option against it.
• Ask what happens if you sell your home before the term ends.
• Ask whether payments increase over time, and by how much.
• Ask who is responsible for repairs, inverter replacement and insurance.
• Ask whether any lien or registration will be placed on your property title.

Red flags

Most solar companies are honest. A few practices, however, should make you slow down.

• Pressure sales. "This price is only good today" is a reason to walk away, not to sign.
• Door-to-door selling. Unsolicited visits are a common source of complaints. Never sign at the door. Ontario has restrictions on door-to-door sales of some home products, so be cautious.
• Liens you didn't expect. Some financing and rental contracts register a notice or lien on your home title. This can complicate selling or refinancing. Read the contract and ask directly.
• "Free solar." Solar is never free. Someone pays for the equipment, and usually it is you, through monthly payments, a long contract or a share of the savings.
• Promises that sound too good. Claims that your bill will drop to zero, or references to government grants that have closed, are warning signs. See what solar costs for which programs ended.
• No written production estimate. A reputable installer will show expected annual production in kWh and how it was calculated.

If something feels off, take time, get a second opinion and read the full contract before signing.

How SolarMyBill fits in

SolarMyBill does not sell panels or financing. We show you an independent estimate of costs, savings and payback first. If you want to go ahead, we pass your details to one vetted installer, and only with your permission.

Next step

See your estimated cost and payback before you talk to anyone: check your roof.