Does $0 Down Solar Really Exist?
Yes — $0 down solar is real, and it’s one of the biggest reasons residential solar adoption has grown so quickly over the past decade.
But “$0 down” can mean very different things depending on how the system is financed. Solar loans, solar leases, and power purchase agreements (PPAs) each come with unique tradeoffs around ownership, savings, flexibility, and long-term value.
This guide breaks down how each option works, who they’re best for, and what homeowners should watch out for before signing anything.
A Quick (Helpful) History of Solar Financing
Residential solar didn’t always look like it does today.
Early adopters typically paid cash or used home equity loans. That limited solar to homeowners with strong credit and available capital.
Everything changed when companies like SolarCity (later acquired by Tesla) and Sunrun popularized solar leasing and PPAs.
These models removed the upfront cost entirely and made solar accessible to millions of homeowners — even if it meant giving up ownership.
Around the same time, solar loan products evolved to better match the federal tax credit structure and long system lifespans, giving homeowners another path to ownership with little or no money down.
You don’t need to know the full history — but it helps explain why today’s options exist.
The Three Main Solar Financing Options (Explained Simply)
1. Solar Loans (You Own the System)
A solar loan works a lot like a car loan — you’re financing the system over time, but you own it.
How it works
- Monthly payments over 10–25 years
- Often $0 down options available
- System is installed on your home and belongs to you
Pros
- You own the system and the energy it produces
- Highest long-term savings potential
- Adds value to your home
- No contracts tied to a third party
Cons
- Monthly payment may be higher than a lease or PPA
- Credit approval required
- Loan terms vary widely between lenders
Important note on tax credits
Solar loans may or may not qualify for tax credits depending on current policy and loan structure. This has changed over time, so homeowners should confirm eligibility with a tax professional or installer before assuming credits apply.
Best for: Homeowners who want ownership, long-term savings, and plan to stay in their home for a while.
2. Solar Leases (You Rent the System)
With a solar lease, a third party owns the system and installs it on your home. You pay a fixed monthly fee to use it.
How it works
- Typically $0 down
- Fixed monthly payment
- Lease term usually 20–25 years
Pros
- Very low barrier to entry
- Predictable monthly cost
- Maintenance often included
Cons
- You do not own the system
- Savings are usually lower than ownership
- Contract must be transferred if you sell your home
About those “lease horror stories”
Early solar leases earned a bad reputation — especially when homeowners tried to sell their homes.
The good news:
Most modern leases explicitly address home sales, offering transfer options or buyout clauses. The industry has largely caught up here, but contract details still matter.
Best for: Homeowners who want simplicity, minimal upfront cost, and aren’t focused on maximizing long-term returns.
3. Power Purchase Agreements (PPAs)
A PPA is similar to a lease — except instead of paying a fixed fee, you pay for the power your system produces (measured in kilowatt-hours).
How it works
- $0 down
- You pay a set price per kWh
- Rate is usually lower than your utility’s rate
Pros
- Immediate savings compared to utility power
- No ownership or maintenance responsibility
- Payments scale with production
Cons
- No ownership or tax benefits
- Long-term contracts
- Savings depend on production and contract escalators
Best for: Homeowners who want utility bill savings without ownership or upfront cost.
How Common Are These Options Today?
While exact numbers vary by market and year, industry data generally shows:
- Cash & loans combined: ~60–70% of residential systems
- Leases & PPAs (TPO): ~30–40%
Leases and PPAs dominated early growth, but ownership has steadily gained share as loan products improved and homeowners became more educated.
What About Selling Your Home?
This is one of the biggest concerns homeowners have — and rightfully so.
Owned systems (cash or loan):
- Typically transfer like any other home asset
- Often increase resale value
Leases & PPAs:
- Must be transferred, bought out, or settled at sale
- Most modern contracts include clear pathways
- Buyers are increasingly familiar with solar agreements
The key takeaway:
👉 Solar doesn’t prevent you from selling your home — but the contract matters.
Always review transfer terms before signing.
So… Which Option Is Right for You?
There’s no universal “best” option — only what’s best for your situation.
Consider ownership (loan or cash) if:
- You plan to stay in your home long-term
- You want maximum savings and home value
- You’re comfortable with financing
Consider a lease or PPA if:
- You want $0 down and simplicity
- You don’t want maintenance responsibility
- You value predictable energy costs over ownership
Final Thought
$0 down solar absolutely exists — and it’s helped millions of homeowners go solar who otherwise couldn’t.
The key is understanding what you’re giving up (or gaining) with each option. Once you know that, solar financing becomes far less intimidating — and far more empowering.
Continue Exploring Solar Basics
If you’re still getting familiar with how home solar works, start with our foundational guide:
Once you’re comfortable with the basics, these articles dive deeper into topics related to solar financing, ownership, and long-term value: