Cash vs Loan vs Lease: Your 25-Year Solar Cost
Compare cash, a CT Green Bank loan and a solar lease with or without an escalator over 25 years, using RRES netting and 2026 Connecticut rates.
Call (860) 969-4006Premier offers cash, a CT Green Bank Smart-E loan, and a lease or PPA with or without a yearly escalator. This calculator shows what each one costs and saves over 25 years, including how an escalator compounds.
The system size fills in from your bill. Change any number to match your quote. Lease rates shown are examples, so enter the rates from your own lease or PPA quote.
This is an estimate, not a quote or a guarantee. Actual prices, savings, production and incentives vary with your home, energy use, utility rates, program rules and final system design. Lease and PPA rates and terms are set by the finance company.
How the Four Options Compare
- Cash: you own the system on day one, earn the RRES customer-owned adder and get the biggest 25-year return.
- CT Green Bank Smart-E loan: you own the system with no money down. Smart-E loans run up to $50,000 at 6.99 to 7.99 percent APR. Savings start right away and grow after the loan ends.
- Lease or PPA with an escalator: a third party owns the panels and you pay for the power. You pay nothing up front, but the price rises every year by the escalator in your contract.
- Lease or PPA with a 0% escalator: the same setup, but your rate stays flat for the whole term. The starting rate is usually higher, and the payment never climbs.
Why the Escalator Matters
A 2.9 percent escalator sounds small. It compounds every year for 25 years, so a 19 cent rate climbs past 37 cents by year 25. Connecticut's Attorney General cited one lease where a 2.9 percent escalator drove payments to $135,693 over 25 years. Always ask for the escalator in writing before you sign.
How This Calculator Works
- Each kW of panels produces about 1,150 kWh a year in Connecticut, losing 0.5 percent a year.
- For 20 years the RRES Netting tariff applies a 4.02 cent per kWh charge on production. Customer-owned systems add 3.2 cents per kWh.
- After year 20 the calculator credits your production at the retail rate, because the successor program rules are still being set.
- The federal 25D credit ended for homeowner-owned systems placed in service after 2025, so none is included.
- Rates come from our 2026 Connecticut solar incentive guide. Final numbers come from your Aurora design and site visit.
Talk It Through With a Local Pro
Bring your numbers to a free visit. I will walk you through every option in plain English.
Frequently Asked Questions
Which is cheaper over 25 years, a solar loan or a solar lease?
For most Connecticut homes, owning with cash or a CT Green Bank loan saves more over 25 years than a PPA or lease, because you keep all the savings and earn the customer-owned RRES adder. Use the calculator with your own quote to compare.
What is a solar escalator?
An escalator is the yearly increase in a PPA or lease price, often 1 to 3 percent. It compounds, so a 2.9 percent escalator raises a 19 cent rate to about 37.7 cents by year 25.
Does Premier offer solar leases?
Yes. Premier offers cash, CT Green Bank Smart-E loans, and lease or PPA options with or without a yearly escalator, and shows you the 25-year cost of each before you choose.
Is the 30 percent federal solar tax credit included?
No. The federal 25D credit ended for homeowner-owned systems placed in service after December 31, 2025, so this calculator does not include it.
Is a 0% escalator lease better than an escalating lease?
A 0% escalator keeps your rate flat for the whole term. It usually starts higher than an escalating lease, so compare the 25-year totals in this calculator using the rates from each quote.
Sources
- Connecticut Attorney General: complaint against Sunrun (July 2024)
- SEIA: federal tax credit fact sheet (July 2025)
- Energize CT: residential financing options
Last reviewed October 2026 by Adam H. Cooke, Premier Improvements.
Call Now and Get Your Estimate.
Roofing, siding, windows, solar and batteries from one Connecticut team. Schedule your free consultation today.