What is Best, Buy or Lease Solar Panels?

Dustin Edwards • September 4, 2024

Choosing between buying or leasing solar panels can be a crucial decision for investors looking to make their properties stand out with renewable energy. This choice can impact the initial cost, as well as the long-term savings. While installing solar panels on your rental property requires a significant upfront investment there are substantial differences between leasing and buying solar panels. Understanding these factors is essential for making the correct decision for your financial goals. Keep in mind you may need additional work done to the roof in case it may require reinforcing in preparation for the additional weight. 


Today we’ll help to inform you on whether buying or leasing solar panels fits your investment strategy. 


Initial Costs

Naturally when looking at the initial costs, buying solar panels will require a much larger initial investment. This range can be varied however, it is typically between $10,000 to $30,000 for a 1000 sq ft single family home. While this is a high initial investment, owning the solar system outright allows you to have full control over the system and benefit from it long term

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Leasing solar panels on the other hand, requires little to no upfront investment, which may be more manageable for investors who are looking to avoid a large expense. Lease agreements generally have a $0 initial payment, though you’ll be committing to monthly payments for up to 25 years depending on your agreement. This can result in monthly payments of around $100 per month for a 5 kW system. While the yearly saving may not be as great when compared to buying the solar panels, they are still a great feature to emphasize when marketing your rental.


Short Term Benefits

Immediate ownership without an ongoing lease payment has the potential for substantial long-term savings for your tenant while not having to pay for the system every month. This investment can also enhance the property's value and appeal to environmentally friendly  prospective tenants looking for a renewable source of power.


Some of the benefits of leasing include the aforementioned lower initial costs. Though unlike buying them outright, lease agreements can oftentimes include maintenance and repairs as part of the agreement. Whereas when buying the solar panels you or your tenant will be responsible for the maintenance and repairs of the system.


Long Term Benefits

The high upfront cost may be a significant deterrent for some property investors, though financing options and tax incentives can help to reduce this burden. Buying solar panels outright can also help you pass the savings to your tenants which can lead to frequent lease renewals, and reduce vacancy and turnover rates.


On average the total cost over time for the lease term may exceed the cost of purchasing the solar panels. Additionally, due to the leasing company owning the panels, investors may not benefit from tax incentives and other potential long-term savings. Though if the goal is to attract more tenants or to make your rental property stand out, the lower barrier to entry can make leasing solar panels more attractive for many investors.


With more and more electricity being used as we head to the future, it's a good idea to be prepared. Having a solar system can help provide tenants with peace of mind knowing that even during black outs they’ll have power especially if you also install a
solar battery. If you need help deciding whether to buy or lease solar panels or if you need help managing Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online.

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By Dustin Edwards • September 22, 2026
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By Dustin Edwards • September 16, 2026
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These may include late or missed rent payments , lease violations, or property damage. Additional risks include neighbor complaints and costly eviction proceedings. Replacing a problematic tenant can be expensive and time-consuming. Between lost rent, repairs, and vacancy periods , a single bad tenant placement can cost thousands of dollars. Professional rental property management prioritizes careful screening because prevention is far easier than resolving problems later. The Tenant Application Process The screening process begins with a rental application. A thorough application collects information needed to evaluate whether an applicant meets the property's rental criteria . Applications typically request: Personal identification information Employment and income details Rental history References from previous landlords Authorization for credit and background checks Property managers review this information to ensure the applicant meets established qualification standards. Consistency is critical; property management companies in Long Beach must evaluate applicants using the same criteria to remain compliant with fair housing laws. Credit History Evaluation Credit history is one of the most common factors considered during tenant screening because it reflects financial reliability. A credit report provides insight into an applicant's behavior over time. This includes payment history, outstanding debts, and collections accounts. It also shows credit utilization, which helps assess overall risk. While a credit score alone does not determine whether someone will be a good tenant, it helps identify patterns of financial responsibility. Professional Long Beach property management services evaluate credit reports carefully while also considering income stability and rental history. Some applicants with lower credit scores may still qualify if they demonstrate strong income and a reliable rental record. Income Verification and Affordability One of the most important indicators of whether a tenant can consistently pay rent is income stability. Property managers verify income to ensure that applicants can reasonably afford the monthly rent. A common guideline is that tenants should earn at least two-and-a-half to three times the monthly rent in gross income. Income verification may include reviewing: Recent pay stubs Employment verification Bank statements Tax returns for self-employed applicants This step helps ensure the tenant's financial situation supports consistent rent payments. Professional property management uses income verification to reduce the risk of late rent or financial hardship. Rental History and Previous Landlord References Past rental behavior is often one of the best indicators of future tenant behavior. Property managers typically contact previous landlords to verify information such as: Payment history Lease compliance Property condition upon move-out Whether the landlord would rent to the tenant again A strong rental history suggests the applicant understands tenant responsibilities and has demonstrated reliability in the past. Experienced property managers in Long Beach California pay close attention to rental history because it can reveal patterns that credit reports alone may not show. Background Screening and Compliance Background screening may also be part of the tenant evaluation process. This can include criminal history checks conducted in compliance with fair housing regulations. It is important that background screening is performed consistently and in accordance with local and state laws. California and many cities have regulations governing how criminal records can be considered in rental decisions. Professional property management companies in Long Beach stay current on these regulations to ensure that screening practices remain compliant. This protects property owners from potential legal risks related to discriminatory screening practices. Establishing Clear Rental Criteria Before screening applicants, property managers establish clear rental criteria. These criteria outline the minimum standards applicants must meet to qualify for the property. Typical criteria may address: Minimum income requirements Credit history expectations Rental history standards Occupancy limits By establishing criteria in advance, property managers ensure that all applicants are evaluated fairly and consistently. Clear criteria also help set expectations for applicants and streamline the approval process. The Importance of Fair Housing Compliance Tenant screening must always comply with federal, state, and local fair housing laws . 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