Solar Financing in Florida: Buy, Lease, PPA, or PACE?
Florida homeowners can go solar through four main financing paths: buying (cash or loan), leasing, signing a power purchase agreement (PPA), or using PACE financing. Each option offers $0 down entry, but only ownership-based paths let you claim the 30% federal tax credit — making buying the strongest long-term financial choice for most households.
Key Takeaways
- Buying your solar system (cash or loan) delivers the highest lifetime savings because you own the panels, claim the 30% federal ITC, and build home equity.
- Solar leases offer simplicity with no maintenance responsibility, but you give up the federal tax credit and accumulate less savings over 25 years.
- PPAs charge you per kilowatt-hour at a rate below your utility, but annual escalators can erode savings and you forfeit ITC ownership.
- PACE financing requires no credit check and repays through your property tax bill, making it the most accessible ownership path for homeowners with credit challenges.
- Florida's sales tax and property tax exemptions benefit all four options, reducing the true cost of solar regardless of how you finance it.
Four Ways to Finance Solar in Florida
The Florida solar market offers more financing flexibility than almost any other state. Between abundant sunshine, strong state-level tax exemptions, the 30% federal Investment Tax Credit, and programs like PACE and the Solar and Energy Loan Fund (SELF), there is a viable path for nearly every homeowner.
But these four options are not interchangeable. They differ in ownership structure, total cost, tax credit eligibility, and long-term savings. Choosing the wrong one can cost you tens of thousands of dollars over the life of your system.
Here is how each option works, who it serves best, and what to watch for.
Option 1: Buying Your Solar System (Cash or Loan)
Buying is the most straightforward path. You either pay for the system outright or finance it through a solar loan, a home equity loan, or a home equity line of credit. In either case, you own the panels from day one.
How Buying Works
- Cash purchase: You pay the full system cost upfront (typically $18,000 to $35,000 before incentives). No monthly payments, no interest, and you begin saving immediately.
- Solar loan: A lender covers the system cost. You make fixed monthly payments over 10, 15, 20, or 25 years. You still own the system and qualify for the federal tax credit.
Pros of Buying
You keep the 30% federal ITC. On a $28,000 system, that is $8,400 back on your federal tax return. This is the single largest financial advantage of ownership and the main reason buying outperforms leasing and PPAs over time.
Maximum lifetime savings. Owned systems in Florida typically save homeowners $30,000 to $60,000 over 25 years compared to staying on grid power. Once a loan is paid off, your electricity is essentially free for the remaining life of the panels.
Home value increases. Studies consistently show that solar panels add 3% to 4% to a Florida home's resale value. Buyers pay a premium for a home with owned solar — not for one with a lease obligation attached.
Predictable costs. A fixed-rate solar loan shields you from utility rate increases, which have averaged 3% to 5% annually in Florida over the past decade.
Cons of Buying
Higher upfront commitment (cash) or credit requirements (loan). Cash purchases require significant capital. Solar loans typically require a credit score of 600 to 680 or higher.
Maintenance responsibility is yours. You are responsible for repairs and upkeep, though most modern panels require very little maintenance and are covered by manufacturer warranties.
Dealer fees on some loans. Some lenders advertise low interest rates but embed 15% to 30% dealer fees into the loan principal. Always ask for the total financed amount, not just the interest rate.
Who Buying Is Best For
Buying is the best option for most Florida homeowners — particularly those with decent credit who want to maximize savings and own an appreciating asset. If you have the tax liability to use the 30% ITC, buying is almost always the financially superior choice.
At RIV Solar, we walk customers through the complete cost of every loan option — principal, interest, fees, and projected savings — before you sign anything. We believe you deserve the full picture, not just an attractive monthly payment.
Option 2: Leasing Solar Panels
A solar lease lets you use panels installed on your roof in exchange for a fixed monthly payment. A third-party company owns, maintains, and insures the system. You benefit from the electricity it produces, but you never own the equipment.
How Leasing Works
- A solar company installs panels on your roof at no cost to you.
- You pay a fixed monthly lease payment, typically $80 to $150.
- The lease runs 20 to 25 years.
- At the end of the term, you can purchase the system, renew the lease, or have the panels removed.
Pros of Leasing
No maintenance burden. The leasing company handles repairs, monitoring, and insurance. If something breaks, it is their problem.
Predictable monthly cost. Your lease payment is fixed (or increases at a small, predetermined rate), giving you budget certainty.
Easier qualification. Some lease programs have more flexible credit requirements than traditional solar loans.
Immediate savings. Your lease payment is typically lower than your current utility bill, so you save money from month one.
Cons of Leasing
You lose the 30% federal tax credit. Because the leasing company owns the system, they claim the ITC — not you. On a $28,000 system, that is $8,400 you leave on the table.
Lower lifetime savings. Over 25 years, leasing typically saves 40% to 60% less than buying, because you never stop making payments and you never own the asset.
Complicates home sales. If you sell your home, the buyer must agree to assume the lease. Some buyers are reluctant to take on a 20-year obligation they did not choose, which can slow or complicate the sale.
No home equity benefit. Because you do not own the panels, they do not add to your property's resale value in the same way owned systems do.
Who Leasing Is Best For
Leasing makes sense for homeowners who want immediate savings with zero maintenance responsibility and who cannot or prefer not to take on a loan. It was more popular when system costs were higher, but as solar prices have dropped, the gap between leasing savings and ownership savings has widened considerably in favor of buying.
Option 3: Power Purchase Agreement (PPA)
A PPA is structurally similar to a lease, but instead of paying a flat monthly fee for the equipment, you pay a per-kilowatt-hour rate for the electricity the panels produce. Think of it as buying discounted electricity from a mini power plant on your roof.
How PPAs Work
- A third-party company installs, owns, and maintains the system.
- You buy the electricity it generates at a set per-kWh rate, typically 10% to 30% below your utility rate.
- Most PPAs include an annual escalator of 1% to 3%, meaning your rate increases slightly each year.
- Terms run 20 to 25 years.
Pros of PPAs
Immediate bill savings. Your per-kWh rate is lower than what FPL or Duke Energy charges, so you save from day one.
No upfront cost. The solar company covers installation, equipment, and permitting.
No maintenance costs. The system owner handles all upkeep and repairs.
Pay only for what you use. Unlike a lease with a flat fee, your PPA cost tracks actual production, which some homeowners prefer.
Cons of PPAs
You forfeit the 30% ITC. Just like a lease, the system owner claims the federal tax credit, not you.
Annual escalators erode savings. A 2.9% annual escalator may seem small, but over 20 years your per-kWh rate could nearly double. By year 15 or 20, you may be paying close to or even more than utility rates.
Limited availability in Florida. Not all solar providers offer PPAs statewide, so your options may be restricted depending on your location.
Same home sale complications as leases. The buyer must assume the PPA agreement or you must buy it out at closing.
Who PPAs Are Best For
PPAs can work for homeowners who want guaranteed savings with no financial involvement beyond paying an electric bill. They are most appealing when the starting rate is significantly below utility rates and the escalator is modest (1% or less). However, for most Florida homeowners, a $0 down solar loan still delivers better long-term value.
Option 4: PACE Financing
Property Assessed Clean Energy (PACE) financing is unique to certain states, and Florida is one of the most active PACE markets in the country. PACE ties solar repayment to your property tax bill rather than your personal credit, making it a powerful option for homeowners who might not qualify for traditional lending.
How PACE Works
- A PACE provider funds your solar installation.
- Repayment is added as a special assessment on your annual property tax bill.
- The assessment stays with the property. If you sell your home, the remaining balance transfers to the new owner.
- Terms typically run 15 to 25 years.
- Interest rates generally range from 6% to 9%.
Pros of PACE Financing
No credit score requirement. This is the defining advantage. Approval is based on property equity, tax payment history, and mortgage standing — not your FICO score.
You own the system. Unlike a lease or PPA, PACE financing gives you ownership, which means you claim the 30% federal ITC.
$0 down. PACE covers 100% of the project cost, including equipment, labor, and permitting.
Transferable on sale. The assessment passes to the next property owner, which can simplify the sales process if you plan to move.
Cons of PACE Financing
Higher interest rates than solar loans. PACE rates of 6% to 9% are typically 1% to 4% higher than what borrowers with good credit would pay on a solar loan.
Senior lien position. The PACE assessment takes priority over your mortgage. Some mortgage lenders are uncomfortable with this, and it can complicate refinancing or home sales in certain situations.
Mortgage lender consent may be needed. Under federal guidelines, some lenders require written approval before a PACE assessment is placed on the property. Check with your lender before proceeding.
Non-payment consequences. Because PACE is attached to your property tax bill, failure to pay carries the same penalties as delinquent property taxes, including potential liens and foreclosure.
Who PACE Is Best For
PACE is ideal for Florida homeowners whose credit score prevents them from qualifying for a competitive solar loan but who still want the benefits of system ownership and the 30% ITC. It fills a critical gap in the financing landscape — providing ownership-based solar access without a credit check.
Programs like Ygrene, Florida PACE Funding Agency, and Renew Financial operate across most of South Florida, Central Florida, and the Tampa Bay area. Additionally, the Solar and Energy Loan Fund (SELF), a Florida-based nonprofit CDFI, offers flexible solar loans to homeowners in underserved communities. SELF can be a strong alternative or complement to PACE.
Solar Financing Comparison Table
| Feature | Buy (Cash) | Buy (Loan) | Lease | PPA | PACE |
|---|---|---|---|---|---|
| $0 Down | No | Yes | Yes | Yes | Yes |
| You Own the System | Yes | Yes | No | No | Yes |
| You Claim 30% ITC | Yes | Yes | No | No | Yes |
| Credit Check | N/A | Yes | Varies | Varies | No |
| Typical Term | Immediate | 10-25 yrs | 20-25 yrs | 20-25 yrs | 15-25 yrs |
| Monthly Payment | None | Fixed | Fixed | Per kWh | Via property tax |
| Maintenance Responsibility | You | You | Provider | Provider | You |
| Home Value Increase | Yes | Yes | Minimal | Minimal | Yes |
| Transferable on Sale | N/A | Payoff at closing | Buyer assumes | Buyer assumes | Transfers with property |
| Lifetime Savings (25 yr) | Highest | High | Moderate | Moderate | High |
| Best For | Homeowners with capital | Most homeowners | Hassle-free savings | Bill reduction only | Credit-challenged owners |
Which Option Is Best for Florida Homeowners?
For the majority of Florida homeowners, buying with a solar loan is the strongest financial decision. Here is why:
The ITC Ownership Advantage
The 30% federal Investment Tax Credit is the most valuable solar incentive available, and it only goes to the system owner. When you lease or sign a PPA, you hand that credit — worth $6,000 to $10,500 on a typical Florida system — to a third-party company.
Consider this example on a $30,000 system:
- 30% ITC value: $9,000
- Net cost after ITC (loan): $21,000
- Net cost after ITC (lease/PPA): You never receive it — the company keeps the $9,000
Over 25 years, this ownership advantage compounds. The loan borrower pays off their system and then generates free electricity for the remaining life of the panels. The lease or PPA customer keeps paying every single month for the full term.
Florida's Tax Exemptions Amplify Ownership
Florida exempts solar equipment from sales tax (saving roughly 6% to 7.5% on the purchase price) and excludes the added home value from property tax reassessment. Both exemptions benefit all financing paths, but they deliver the most value to owners because:
- The sales tax exemption reduces the amount you finance.
- The property tax exemption means the 3% to 4% home value increase from solar panels stays in your pocket without a higher tax bill.
When Buying Is Not the Best Fit
Ownership is not right for everyone. If your credit score is below 600 and you do not qualify for PACE in your county, a lease or PPA may be your only immediate path to solar savings. That is still better than no solar at all. Even without the ITC, leases and PPAs typically save Florida homeowners 10% to 30% on electricity costs from day one.
Questions to Ask Before Choosing a Financing Option
Before you sign any solar agreement, get clear answers to these questions:
About the Numbers
- What is the total cost, including all fees? Some solar loans include dealer fees of 15% to 30% that inflate the principal. A $28,000 system can quietly become a $35,000 loan.
- What is my projected monthly payment versus my current electric bill? You want to see a side-by-side comparison for year 1, year 10, and year 20.
- What is the annual escalator rate? (For PPAs and some leases.) Run the math on what your rate will be in year 15 and year 20.
- What is my estimated ITC value, and how do I claim it? If you are buying, you should know exactly how much tax liability you need to use the credit.
About the Agreement
- Who owns the system? This single question determines whether you or a third party captures the ITC and home value benefit.
- What happens if I sell my home? Understand the transfer, buyout, or payoff process for your specific agreement.
- What does the warranty cover, and for how long? Equipment warranties, production guarantees, and workmanship warranties are all different.
- Who handles maintenance and repairs? If you own the system, confirm what is covered under warranty versus what you pay for.
About the Installer
- Do you use in-house crews or subcontractors? In-house teams provide more consistent quality and accountability.
- Can you walk me through all financing options, not just one? A trustworthy installer will present multiple paths and help you compare — not steer you toward whichever earns them the highest margin.
At RIV Solar, we present every viable financing option during your consultation — loans, PACE, SELF, and third-party arrangements — and show you the total cost and projected savings for each. Our bilingual team is available in English and Spanish, and we never pressure you to choose one path over another.
Getting Started With Solar Financing in Florida
Choosing the right financing option does not have to be overwhelming. Here is the straightforward process:
- Request a free solar assessment. A RIV Solar advisor evaluates your roof, electricity usage, and financial goals. We conduct consultations in English or Spanish, whichever you prefer.
- Review a side-by-side financing comparison. We present buying (cash and loan), PACE, SELF, and any applicable lease or PPA options with clear numbers: monthly payment, total cost, ITC value, and 25-year savings projection.
- Choose the option that fits your household. No pressure, no rush. Take the proposal home, discuss it with your family, and compare it to your current utility costs.
- Installation by our in-house team. RIV Solar never subcontracts your installation. Our crews handle every step — design, permitting, installation, and interconnection — backed by a 25-year warranty.
- Start generating savings. Your system begins producing power immediately after inspection and utility activation.
Ready to see which financing option makes the most sense for your Florida home? Get your free quote from RIV Solar and we will show you the numbers — clearly, honestly, and without pressure.
Frequently Asked Questions
Is it better to buy or lease solar panels in Florida?
For most Florida homeowners, buying is the better financial decision. When you own your solar system — whether through cash or a loan — you claim the 30% federal tax credit, build home equity, and save significantly more over 25 years. Leasing is simpler and requires no maintenance, but you forfeit the tax credit and accumulate lower total savings.
What is PACE solar financing in Florida?
PACE (Property Assessed Clean Energy) is a financing program that lets Florida homeowners fund solar installations with no credit check and no money down. Repayment is added to your annual property tax bill over 15 to 25 years. Because you own the system under PACE, you still qualify for the 30% federal ITC. Interest rates typically range from 6% to 9%.
Do I lose the federal tax credit if I lease solar panels?
Yes. The 30% federal Investment Tax Credit goes to the system owner. When you lease solar panels or sign a PPA, the leasing company owns the equipment and claims the credit. On a $28,000 system, that is $8,400 in tax savings that go to the company instead of you.
Can I go solar in Florida with bad credit?
Yes. PACE financing has no credit score requirement — approval is based on property equity, tax payment history, and mortgage standing. The Solar and Energy Loan Fund (SELF), a Florida-based nonprofit lender, also works with homeowners who have credit scores below what conventional lenders require. Both options allow $0 down.
What is the Solar and Energy Loan Fund (SELF)?
SELF is a nonprofit Community Development Financial Institution (CDFI) based in Florida. It provides solar loans to homeowners who may not qualify for traditional financing, including low-to-moderate income households and those with lower credit scores. SELF uses flexible underwriting criteria and offers competitive rates with no prepayment penalties.
