Pros and Cons of Leasing vs. Buying a Solar System
If you’re a North Carolina homeowner, you now have the option of solar and battery leasing, which opens the door for more people to go solar without the upfront cost of ownership. Today, you can lease a full solar-plus-battery system or add a battery to an existing solar setup through a lease, for efficiency and convenience.
North Carolina homeowners can now lease solar panels, batteries, or both, with future repairs included. Leasing remains one of the few ways for NC homeowners to benefit from limited solar tax incentives in 2026 without owning the system. Available now to Duke Energy customers who own a home.
Leasing isn’t the right fit for everyone, though. Some homeowners prefer to buy outright for long-term savings or to build home value, while others prefer the predictability and low responsibility that come with leasing. Here’s what to know about your options, so you can decide what makes sense for your home.
How Solar Leasing Works in North Carolina
A residential solar lease is straightforward in concept: a third-party solar company owns the solar and battery system, and you pay a fixed monthly fee to use it.
Lease terms typically run 25 years with options to buy, renew, or remove it at the end of the term.
There aren’t any maintenance or repair costs during the lease, so if something breaks, it’s handled for you. That’s a major appeal for homeowners who want predictable energy costs without worrying about performance issues. At the end of the lease, you generally have three options:
- Buy the system at a reduced cost
- Renew the lease at a reduced rate
- Have the system removed
North Carolina doesn’t allow third-party PPAs, so leasing is the primary non-ownership path. Additionally, NC requires lessors to be approved by the NC Utilities Commission.
You may also hear leasing referred to as a “solar subscription,” which sounds modern but is still a lease at the end of the day.
Battery-Addition Leasing for NC Homeowners
Battery leasing is available for homeowners who already have a solar energy system and want to add backup power.
In fact, battery-only leasing in North Carolina is designed specifically as an add-on to an existing solar system, whether you own that system outright or financed it. This is a big deal for homeowners who installed solar panels years ago and now want backup solar power during outages, more control over their electricity costs and energy use, or to take advantage of certain utility incentives.
A single battery, such as the Tesla Powerwall 3, which is currently the only battery supported in SEM’s lease program, can typically provide enough power to run essentials like refrigerators, lighting, outlets, and Wi-Fi during outages. Before recharging from solar, a single battery typically provides 12 to 24 hours of backup battery storage without running heavy loads like an HVAC.
If you’re considering adding a battery, it’s important to talk through your goals with a solar designer. Backup expectations, energy usage, and system design all play a role in what your battery can realistically do.
NC Leasing Incentives Worth Knowing in 2026
The federal residential solar tax credit expired on December 31, 2025, for homeowners, but lessors (as businesses) can still claim commercial federal solar tax credits through 2027.
If you buy a system outright in 2026, you won’t get that tax credit. However, the benefits from commercial incentives make lease pricing more affordable, making leasing one of the few ways you can still indirectly benefit from solar tax incentives.
There’s also a major utility incentive available which is passed directly to homeowners, even when leasing a system. Right now, the PowerPair incentive is available to Duke Energy Carolinas customers only. We anticipate capacity will fill before the end of summer, so now’s the time to act if you want the additional savings.
The program has already reached capacity for Duke Energy Progress customers.
Do You Qualify?
Not every home qualifies for solar or battery leasing, but the requirements are fairly simple. You need to:
- own your home (renters aren’t eligible)
- Have a detached home
- Have a roof suitable for solar installation
- be a Duke Energy customer
Your home will also be professionally assessed for roof condition and age, sun exposure and shading, and overall solar production potential. Some homes might not qualify due to heavy shading, older roofs, or structural limitations. Financially, leasing requires a soft credit check and typically a credit score of 675 or higher.
Who is a Lease Best For?
Based on our experience, here’s what we’ve noticed between our customers who lease a system and who prefer to purchase a system outright:
| You might be a lease client if… | You’re probably a direct buyer if… |
|---|---|
| You want to keep cash free to invest elsewhere | You take pride in ownership |
| You want predictable energy savings without any potential repair costs | You want the simplest path of transferring ownership of your system in the future |
| You plan on staying in your home for 7+ years | You know you’ll be moving in the next 5 years |
| A traditional loan isn’t the right fit, but rising utility rates are a real concern | You want to be able to recognize the value of your solar assets as part of your home |
Why Work With Southern Energy Management
When considering a 25 year investment, you want to make sure you have a long-term partner to back you up. Southern Energy Management (SEM) has been serving North Carolina homeowners since 2001. We handle the full design and installation of your system, while the lease itself is offered through LightReach.
Over the past 25 years, we’ve installed 3,500+ solar systems and 1,000+ batteries. We’re a premier certified installer for Tesla Powerwall systems, and our Raleigh-based team has deep local expertise.
Because we’re also a service provider for solar and battery options in NC through LightReach, we stay involved even after installation. If something needs attention, you’re working with a team that already knows your system, at no cost to you.
FAQs
Can I lease just a battery without solar panels in North Carolina?
Yes, but in practice, battery leasing is structured as an addition to an existing solar system. If you don’t currently have solar, a designer may recommend pairing both for best performance and incentives.
What happens to my solar lease if I sell my home?
The lease can either transfer to the buyer or you can buy out the lease before selling the home. The cost of buying out the lease will be determined by a third party company at Fair Market Value, pending approval. This is a key consideration if you don’t plan to stay in the home long-term. If you’re planning on moving in the next 7 years, a lease probably isn’t right for you.
How does leasing differ from buying solar in NC?
Leasing requires little to no upfront cost and includes any repair costs, but you don’t own the system outright which adds a layer when you move. Buying offers added home value upfront and simplifies logistics around your system since you own it outright.
Do leased solar systems qualify for Duke Energy’s net metering program?
Yes, leased systems can participate in net metering.
Why are there so few residential solar lease providers in North Carolina?
Because all lessors must be approved by the NC Utilities Commission and the state does not allow PPAs, the number of providers is limited.
What are the pitfalls or unknowns of a solar lease?
Potential downsides of leasing a solar system include long-term commitment, transfer requirements when selling, and uncertainty around buy-out pricing. You will also want to make sure you understand if your installer has included an annual escalator in the lease payment or not.
What is the buy-out price of a lease?
Buy-out pricing varies based on system age and contract terms. Most contracts will state that the system will be sold at ‘fair market value’. That price is determined at the time of sale, by an independent auditor which makes upfront pricing difficult to get.
Can I use a HELOC or refinancing instead of leasing?
Yes, many homeowners use HELOCs or refinancing to purchase systems outright, which may offer better long-term returns depending on your situation.
Talk to a Solar Designer
Leasing vs. buying isn’t a one-size-fits-all decision, and the right choice depends on your home and financial goals, as well as how long you plan to stay before a move. At Southern Energy Management, we offer free solar and battery assessments to help you explore your options with real numbers, not guesswork. A quick conversation with a solar designer can help you understand exactly what leasing, or owning, would look like for your home.
