Comparison & choosing

Solar panel lease vs buy — which is better?

Owning the system and its savings, or hosting someone else's panels.

The short answer

Buying means you pay for the system upfront (or via finance) and own it, so you keep all the savings, all the export income under the Smart Export Guarantee, and the equipment itself. Leasing or 'rent-a-roof' schemes mean a company installs panels on your roof at little or no upfront cost and keeps the income, while you get free or cheap daytime electricity. Leasing removes the upfront cost, but you do not own the panels, you keep far less of the benefit, and a long-term arrangement on your roof can complicate selling or remortgaging your home. Because panel prices have fallen so much, buying now offers a reasonable payback and the full long-term saving, so for most homeowners who can fund it, buying outright is the stronger choice; leasing mainly suits those who cannot or do not want to pay upfront.

Rent-a-roof schemes were more common when panels were expensive; today, with much lower prices, outright purchase is usually more attractive. Still, leasing exists for those who cannot fund a system. Here is how the two compare on ownership, money and your home.

Lease vs buy

Who owns what, and who keeps the money

When you buy, the panels are yours. You keep every pound of bill saving from using your own electricity, you receive the export payments for surplus sent to the grid under the Smart Export Guarantee, and you own an asset that adds to the home. The trade-off is the upfront cost, whether paid in cash or through finance, and responsibility for maintenance after any warranties.

Under a lease or rent-a-roof scheme, a third party owns the panels and typically keeps the export income and any incentive payments. In return they fund the installation, so you pay little or nothing upfront and usually get to use the daytime electricity the panels generate for free or at a low rate. You benefit, but a much smaller share of the total value than if you owned the system, and you do not own the equipment.

FactorBuy outrightLease / rent-a-roof
OwnershipYouThe provider
Upfront costYes (cash or finance)Little or none
Bill savingsYou keep allPartial (daytime use)
Export income (SEG)You receive itProvider keeps it
MaintenanceYour responsibilityUsually provider's
Selling the homeSimple, adds valueCan complicate sale
Long-term valueHighest to youLower to you

Indicative comparison for guidance. Sources: Energy Saving Trust; Ofgem.

Impact on selling or remortgaging

A bought, owned system is straightforward when you sell: the panels transfer with the house and can add to its appeal. A leased system is more complicated, because the panels belong to a third party under a long agreement, often a couple of decades. A buyer takes on that arrangement, and their mortgage lender will want to review the lease terms. Some lease contracts and roof arrangements have historically raised concerns with lenders, so it is essential to understand the contract's effect on a future sale before signing.

This is the most important practical difference. Removing the upfront cost is attractive, but a long lease attached to your roof can make the property harder to sell or remortgage if the terms are not lender-friendly. Always read the agreement carefully, check the implications for selling, and take independent advice if anything is unclear.

Read the lease terms closely: a rent-a-roof contract can run for many years and is tied to your property. Understand who owns the panels, who is responsible for the roof and any damage, what happens if you sell, and whether your mortgage lender accepts the arrangement, before committing.

Which suits you

Buying outright suits homeowners who can fund the system, whether in cash or through reasonable finance, and want the full benefit: all the bill savings, the export income, ownership of the asset, and a clean position when selling. Because panel costs have fallen so much, paybacks are now reasonable and the long-term saving belongs entirely to you, which makes purchase the stronger choice for most people in a position to pay.

Leasing or rent-a-roof suits those who cannot or prefer not to pay upfront and still want some benefit from solar on their roof. You give up most of the value and ownership, but you avoid the capital outlay and get cheaper or free daytime electricity. It is a way to access solar without funding it, accepting a smaller share of the rewards and the complications a long roof lease can bring.

If you are weighing them, compare prices for outright purchase from MCS-certified installers — MCS is required for the Smart Export Guarantee — and compare the payback and lifetime saving against any lease offer's terms. For most homeowners who can afford it, owning the system captures far more value; leasing is a fallback when paying upfront is not possible, and only worth it after carefully checking the contract's effect on your home.

Frequently asked questions

Is it better to buy or lease solar panels?

For most homeowners who can fund it, buying is better. You own the system and keep all the bill savings and export income, and selling the home stays simple. Leasing removes the upfront cost but gives you a much smaller share of the benefit, no ownership, and a long roof agreement that can complicate selling or remortgaging.

Can I sell my house with leased solar panels?

Yes, but it can be more complicated. The panels belong to a third party under a long agreement, so a buyer must take on the lease and their mortgage lender will review its terms. Some arrangements have raised lender concerns, so check the contract's effect on selling before signing, and take independent advice if needed.

Do I get export payments if I lease my panels?

Usually not. Under most lease or rent-a-roof schemes the provider owns the panels and keeps the export income and any incentive payments, while you get free or cheap daytime electricity. If you want to receive Smart Export Guarantee payments yourself, you generally need to own the system by buying it.

Sources & further reading

Figures on this page are typical UK ranges drawn from published sources and depend on your specific home. They are guidance, not a quotation or guaranteed saving.