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When is it better to purchase a system outright?

Outright purchase maximizes financial returns and ownership of environmental benefits.

Purchasing a solar system with cash requires significant upfront capital but can generate the highest returns over the system's 25-30 year lifespan. This depends on your organization's cost of capital and tax situation.

Key advantages:

  • You capture 100% of electricity savings and avoid financing costs.

  • You claim the federal solar ITC directly, reducing tax liability.

  • You own Renewable Energy Certificates (RECs) for use in net-zero reporting or sale.

  • You direct maintenance and system management decisions.

Outright purchase works best for organizations with available capital, sufficient tax liability to claim credits, long-term commitment to a building location, and goals around environmental attribute ownership or net-zero reporting. If your organization lacks capital or tax liability, leases or PPAs remain viable options.