Solar Lease vs. Buy: Which Is Better for Your Business or Home?
Solar energy is one of the growing renewable power sources across the world, especially in the UK. This renewable power source is gaining popularity for its abilities such as reduced electricity costs, providing long-term energy independence for homes and businesses. The question arises: Solar Lease vs. Buy- Which Is Better for Your Business or Home?.
At Arc Renewables, we have a team that works with organizations and property owners across the UK and help them make financially smart decisions about solar. We are not about helping making final smart decisions about solar but are dedicated to offering services from initial consultation and system design to installation, monitoring, and maintenance. Our team will help you support throughout the lifecycle to ensure that your investments in solar can deliver long-lasting savings and energy.
What is the Reason: Why is Solar Energy Booming in the UK?
The demand for solar is growing rapidly in the UK. For the past years, the UK has undergone an increased growth for the solar market. The UK has gone from a modest solar market to one producing diverse terawatt hours of clean electricity every year. According to PV Magazine, over half of UK electricity generation came from renewables in 2024 and generation from renewable technologies in 2024 is increased by 7% on the last year to a record of 144.7 TWh which is a 50.8% share of total electricity generation. Some real numbers from GreenMatch that indicate why solar energy is booming in the UK:
- The solar electricity generated by the UK in 2025 is 14.43 billion kWh which is enough power for over 5 million homes.
- Renewables have surpassed fossil fuels for the first time by providing 37% of the electricity in the UK.
- Solar becomes more affordable than ever as the cost of solar panels has dropped by 90% globally.
- Some major challenges that can slow the future growth include grid limitations, policy changes, and labour shortages.
These numbers illustrate the growth of solar energy in the UK.
What Does It Mean to Lease Solar Panels?
When you lease solar panels, it means a solar provider installs and owns the system on your property. For the installation of the solar panels, you pay regular monthly fees for the right to use the energy that system produces. Simply, leasing the solar panels means you don’t won the panels but remove the need for a big upfront payment. Leasing means renting the right to use solar power.
What are Some Typical Features of Solar Leasing?
- No or minimal upfront cost
- Fixed monthly payment
- Solar provider handles installation and maintenance
- You benefit from reduced grid energy use
According to reports, a domestic solar panel system can cost around £6,100 and around 3.5 kWp.
What Does Buying Solar Panels Mean?
Buying solar panels means you own the entire system. You can either pay cash or take out a solar loan. When you buy a solar panel, you will be responsible for installation of the solar, its costs, and ongoing maintenance. But when you buy solar panels, you can keep all the long-term benefits, including increased property value and financial returns from the lower energy bills.
When you buy solar, it can be a long-term investment and as the UK energy costs are still volatile, you can own the energy system that gives you more control over your financial future.
A Quick Comparison for Solar lease vs. buy: which is better?
| Consideration | Solar Lease | Buy Solar |
| Initial affordability | Excellent for low upfront | Requires investment |
| Savings over time | Lower overall | Highest potential |
| Maintenance worry | Low (covered) | Optional support available |
| Property resale | Can complicate sales | Adds value |
| Incentive benefit | Provider keeps incentives | You benefit directly |
| Control & upgrades | Limited | Full control |
Which Option Is Better for You: Solar Lease or Buy?
The choice between leasing and buying solar in the UK usually depends on your financial situation, goals, and your plan to stay in the property. Here are the scenarios when lease or buying might be the right choice for you. Lease may be right choice if you:
- Want no upfront cost
- Prefer minimal involvement
- Want predictable monthly costs
Buying may be right if you:
- Want maximum lifetime savings
- Plan to stay long term
- Value increased property resale appeal
- Want full control over your system
Arc Renewable can help you evaluate your plans and perform financial modelling. We will recommend the best option based on your goals.
Frequently Asked Questions for Solar lease vs. Buy: Which is Better:
Question 1. Is leasing solar a cheaper option than buying in the UK?
Answer. In the UK, leasing solar can avoid upfront costs but typically results in lower lifetime savings compared to buying. As you pay monthly fees and don’t fully benefit from reduced energy bills or export earnings, buying solar can be cheaper.
Question 2. If I own solar in the UK, can it increase my home’s value?
Answer. Yes, when you own solar systems, it usually increase your property’s resale value. The buyer gains a system through which they can reduce future energy costs and offer environmental appeal.
Question 3. If I lease panels and after a few times, I sell my house. Can leased panels affect selling my home?
Answer. Solar leases can complicate sales in the case when the buyer must assume the agreement. Ownership usually makes sales smoother and more attractive to buyers.
Question 4. What government support can I get in the UK as a solar owner?
Answer. Solar owners can benefit from the Smart Export Guarantee. The Smart Export Guarantee can offer potential earning for excess energy exported to the grid and VAT relief on eligible solar and battery systems.
Question 5. Will solar still work in the weather conditions in the UK?
Answer. Yes. Modern solar panels are designed to generate power in different conditions, like cloudy and cool conditions. The UK installations are setting generation records rapidly every year.
Conclusion: Your Solar Decision, Confidently Made
Whenever you are choosing between leasing and buying solar panels in the UK, you need to consider different factors, including affordability now versus financial and energy benefits for a long period of time.
When you own your system, it usually delivers the best financial outcome, especially if you plan you stay in your home or business for a long term. But when you lease, it means solar without upfront costs or hassle.
If you need any type of help on your solar journey, then Arc Renewables is here to support you with expert guidance and tailored solutions that can fit your energy goals and budget.
So, don’t get confused. Let’s work together to unlock renewable energy savings and reduce your carbon footprint in a smart way.