Financing
Enter your original system cost and contract length. See the estimated buyout price at every checkpoint across the full term, not just a single year.
How it works
Step 1
Use the figure from your lease or PPA documents, or a typical installer quote for a comparable system if it's not listed. The lease buyout cost calculator gives you a single-year estimate if that's all you need.
Step 2
Most residential leases and PPAs run 20 or 25 years. Use the exact figure from your agreement, and check the PPA vs lease comparison if you're unsure which structure you have.
Step 3
Whether you're weighing an early buyout, one tied to a home sale, or just curious how the number evolves, seeing the full curve helps you plan around your own circumstances.
Buyout value is generally based on the system's fair market value, which falls as fewer years of production remain under the contract and the equipment ages. On a $28,000 system under a 25-year contract, the estimate runs close to the full original cost in year 1, drops to roughly $12,880 by the midpoint at year 15, and settles near $2,800 by year 25. The DOE's homeowner's guide to solar financing covers buyout mechanics in more general terms.
Most buyout schedules include a residual floor, commonly around 10% of the original system cost, since the equipment still generates real production value even at the end of a long contract. Solar panels typically retain a large share of their original output after 25 years, which supports keeping some floor value in the buyout calculation rather than letting it decline to nothing. The home value increase from solar tool can help you quantify that ongoing production value beyond the buyout price itself.
If you're considering a buyout tied to a specific life event, like a home sale or a windfall, this curve helps you see roughly what to expect at that point in time rather than guessing. Compare it against the lease transfer at home sale calculator if you're weighing a buyout against simply transferring the contract to a buyer. The commercial PPA vs ownership tool covers a related decision if the system is for a business.
Every leasing company sets its own buyout methodology, and some use a fixed percentage schedule while others calculate fair market value through an appraisal-style process at the time of request. Treat this curve as a planning range, and always request the exact figure from your provider before making a final decision.
A completed buyout converts a third-party owned system into an owned one, which the third party owned vs owned comparison covers in terms of what ownership is worth beyond the buyout price itself, including home resale value. A buyout doesn't create new federal tax credit eligibility, since the residential credit expired for new claims on systems installed after December 31, 2025. The lease buyout cost calculator gives you a direct estimate at your current point in the contract. The IRS Form 5695 instructions confirm the current eligibility rules directly.
Questions
It declines steadily from close to the original system cost in year 1 down to a small residual value near the end of the term. On a $28,000 system under a 25-year contract, a typical estimate runs about $27,000 in year 1, roughly $12,880 by year 15, and around $2,800 by year 25.
Most buyout schedules include a residual floor, often around 10% of the original system cost, reflecting that the equipment still has real remaining production value even near the end of the contract. This is a modeling estimate, and actual floors vary by leasing company.
It uses the same estimation approach, a declining percentage of original system cost, but shows the full curve across every year rather than a single point in time. Your leasing company's actual buyout formula may differ, so use this as a planning tool and request the exact figure directly from your provider.
There's no universally best year, since it depends on your goals: earlier buyouts cost more but give you more years of ownership benefit, while later buyouts cost less but leave fewer years to recoup that investment. Many leases also restrict buyouts before a minimum year, often year 6, which is worth checking first.
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