Leasing Solar Panels UK: Worth It in 2025?

Solar panel leases offer free solar panels in exchange for leasing your roof space, but it’s worth taking time to understand what this arrangement involves.

In the past decade, solar panels have moved from being a rare sight to a common feature on rooftops across the UK. Government statistics on solar photovoltaics deployment show that there were over 1.8 million solar installations across the UK as of the end of June 2025.

However, while the technology has improved and solar panel costs have dropped, not everyone wants, or can afford, to buy a solar system outright. That’s where solar panel leases come in. They might look appealing, especially when you’re told there’s no upfront cost, but the long-term implications can be more complex.

This guide covers how solar leases work in the UK, what you gain, what you give up, and why some homeowners are cautious. It also explains how leasing compares with buying and where this model fits into the broader shift towards domestic renewable energy.

Key Takeaways:

• Solar panel leases were popular in the UK during the Feed-in Tariff years but are far less common now.
• Leases usually last 20–25 years and involve giving up control of your roof space.
• No upfront costs, but you don’t own the panels or get any export payments.
• Selling a home with leased solar panels can be challenging and may require legal assistance.
• Most homeowners today are better off buying panels outright or using finance if needed.
• Always read the fine print before signing any long-term solar lease agreement.

What Are Solar Panel Leases?

A solar panel lease involves a company installing solar panels on your home at no cost to you. In return, you allow them to use your roof for an extended period, often 20 to 25 years. You get to use the electricity the panels generate, usually free of charge or at a reduced rate, but you don’t own the panels.

The installation firm retains ownership and typically receives any export payments or financial benefits linked to the energy produced. You benefit from lower bills, and they benefit from consistent income over time.

These leases were more common during the height of the UK government’s Feed-in Tariff (FiT) scheme. Installers could secure regular payments for generating electricity and feed this back into the grid. Offering homeowners “free solar panels” was an easy way for firms to expand their installations and profit from the tariffs.

Is Leasing Still a Thing in 2025?

The Feed-in Tariff closed to new applicants as of 1 April 2019, but some older leases from that era remain active. While the Smart Export Guarantee (SEG) replaced it, the payments under SEG are significantly lower and not fixed for decades, unlike the FiT.

As a result, far fewer companies offer traditional solar leases in 2025. Some firms still operate similar models, where they install panels and offer homeowners discounted electricity under a power purchase agreement (PPA), which can last between 5 and 15 years. However, these are less prevalent than they were a few years ago.

New lease-style offers are more common in certain housing developments, housing associations, or social housing schemes where councils or third-party firms provide solar as part of broader energy-efficiency packages.

How Do Solar Panel Leases Work?

Here’s a simplified breakdown:

1. Agreement – You sign a lease allowing a company to install and maintain solar panels on your roof. The lease usually lasts 20–25 years.

2. Installation – The company installs the panels, handles maintenance, and covers all costs.

3. Energy Use – You can use the electricity generated, often for free or at a low fixed rate.

4. Payments & Benefits – The company receives any export payments or government incentives tied to the system.

5. End of Term – When the lease ends, you may be offered the chance to buy the panels or have them removed.

The catch? You don’t own the system. You can’t sell it, decide when to upgrade, or make any changes. It can also be complicated if you want to move house before the lease ends.

What are the Pros of Solar Panel Leases?

Not everyone can afford the upfront cost of buying solar panels. According to the Energy Saving Trust, a 3.5 kWp domestic solar panel system can cost around £6,100. A lease removes that cost barrier entirely.

1. No Upfront Cost

The biggest draw is that you don’t have to pay for panels, inverters, scaffolding, or installation. This makes solar energy accessible to people who want to reduce their bills but don’t have spare savings.

2. Lower Electricity Bills

You can use the energy generated on your roof during the day. That reduces how much power you draw from the grid, especially if you’re home during daylight hours.

3. You Don’t Have to Deal with Maintenance

The company owns the system, so they’re usually responsible for repairs, insurance, and maintenance. If anything breaks or underperforms, it’s not your financial burden.

4. Minimal Involvement

Aside from signing the lease and providing access to your roof, you don’t have to manage or monitor the system. That suits people who want savings without extra hassle.

What are the Downsides and Risks of Solar Panel Leases?

Leasing panels isn’t the same as owning them. It limits your control, adds complexity to your home’s legal status, and can affect resale value. Here’s what to watch out for:

1. You Give Up Your Roof Space for Decades

A lease hands over rights to your roof to a third party. That limits what you can do with the space and can cause issues if you want to extend your home or replace your roof in the future.

2. You Miss Out on Export Payments

Under the Smart Export Guarantee, homeowners with solar panels can receive payment for the electricity they generate and send back to the grid. With a lease, those payments go to the company that owns the system.

3. Property Sale Problems

If you want to sell your home before the lease ends, you may need to convince the buyer to take on the lease or pay to remove the panels.

Some mortgage lenders have been cautious about leased panels, especially if the lease includes clauses that could affect property value.

4. You Have No Say in Upgrades

Solar technology moves quickly. If your panels fall behind or your inverter ages poorly, you can’t just upgrade – you’ll need permission or wait for the lease to end.

5. Complicated Legal Terms

Lease agreements vary. Some include break clauses, performance guarantees, or options to purchase the system outright. Others are more rigid. Always read the fine print.

What Happened to the “Free Solar” Boom?

Between 2010 and 2016, thousands of UK households signed up for free solar panel deals offered by private firms.

The companies benefited from the Feed-in Tariff, which paid them a fixed rate per unit of solar electricity generated. They installed panels at no cost to the homeowner, locked in a 20 to 25-year income stream, and passed on some savings.

It worked for a while since panels were cheaper than before, the FiT paid well, and homeowners liked the idea of lower bills. However, when the government reduced tariffs and ultimately closed the scheme, the financial model became less attractive to new firms.

Some firms exited the market, merged, or sold their leases to third parties. Homeowners who signed those leases are still bound by the terms today, although the original installer may no longer be in existence.

Can You Get Out of Solar Panel Leases?

It’s possible, but rarely simple. Lease agreements are legally binding contracts. Most don’t include an easy exit clause unless the homeowner pays to buy the system or compensates the company for lost income.

If you’re thinking of selling your home, you’ll need to:

• Inform the buyer about the lease
• Share all legal documents
• Get consent from the leasing company to transfer the agreement
• Possibly pay for removal or negotiate a buyout

Some buyers may be put off entirely, especially if they want a clean slate. Others may like the idea of free solar electricity. It depends on their situation and your solicitor’s ability to explain the lease terms.

What are the Alternatives to Solar Panel Leases?

If you’re not sold on a lease, there are other ways to benefit from solar without the downsides.

1. Buy Panels Outright

This gives you complete control. You receive SEG payments, avoid third-party contracts, and increase your property’s value. Prices have dropped steadily, and a typical system pays for itself in 7–10 years.

2. The Energy Company Obligation (ECO4)

The ECO4 Delivery Guidance notes that you can qualify for solar panel installation under the scheme if your property is already heated via a heat pump or electric heating system with a Standard Assessment Procedure (SAP) responsiveness rating of 0.8 or higher.

3. Solar on Finance

Some installers offer finance deals that let you spread the cost over several years. Interest rates vary, and you retain ownership of the panels from the very beginning.

4. Community Energy Schemes

In some areas, local energy co-operatives install solar panels on homes or community buildings, providing shared benefits. Many councils also run their own bulk-buy programs, such as Solar Together, which offer group buying discounts for solar PV and battery storage systems.

Through the power of group-buying, you can get a competitive price, high-quality products and installations, and an easy process.

5. Solar Sharing

Some housing developments install solar for all properties and spread the savings. These aren’t traditional leases, but they still reduce bills.

6. Warm Homes: Local Grant

Through the Warm Homes: Local Grant scheme, the UK government has partnered with combined authorities, local, and devolved governments to deliver insulation measures and other improvements, such as solar panels and PV batteries.

There are three eligibility pathways, including living in eligible postcodes, receiving a specified means-tested benefit, or having a household gross annual income below the scheme’s household income threshold (£36,000).

Questions to Ask Before Signing a Lease

If you’re considering a solar lease (or inheriting one with a property), get answers to the following:

• Who owns the panels?
• What happens if the company goes bust?
• Who receives any export payments?
• Can the panels be removed if needed?
• What happens at the end of the lease?
• Are there clauses that affect roof repairs or extensions?
• Can I buy the panels later, and at what price?

Get legal advice if you’re unsure. A lease may look simple, but it has long-term implications for your property.

What Do Mortgage Lenders Say About Solar Panel Leases?

In past years, some mortgage lenders refused to offer loans on homes with leased solar panels. They worried about complications with lease terms, potential damage to roofs, or the cost of removal.

Most lenders now assess each case on its own merits. If the lease has clear terms, allows easy transfer, and doesn’t affect roof repairs or extensions, it may not be a deal-breaker.

Still, if you plan to sell, consult with an independent adviser or mortgage broker before signing any documents.

Should You Get Solar Panel Leases in 2025?

For most homeowners, leasing panels makes less sense now than it did a decade ago. The closure of the Feed-in Tariff has changed the economics. New offers are rare, and buying panels outright often proves to be a better long-term investment.

If you already have a lease from the early 2010s, you may be satisfied with the setup, or you may be looking to purchase the panels and regain complete control. Either way, the key is knowing where you stand and what options are available to you.

Final Word on Solar Panel Leases

Leasing solar panels was once a common way for UK households to benefit from renewable energy without the cost. However, as incentives have changed and solar energy has become more affordable, this model has fallen out of favour.

If you’re offered a solar lease today, treat it as a property contract, not just an energy deal. Ask questions, read the small print, and weigh up what you gain against what you give up. Sometimes it’s better to wait, save, and buy your own.

FAQs on Solar Panel Leases

How Long Are Solar Panels Leased For?

Most solar panel leases in the UK typically last between 20 and 25 years. The length depends on the contract you sign, but 25 years was common during the Feed-in Tariff years.

Some newer schemes offer shorter terms, especially if they’re linked to power purchase agreements or managed by local councils or housing associations.

How To Get Out Of A Solar Panel Lease In The UK?

Getting out of a solar lease isn’t always easy. These agreements are legally binding and often last for decades. You may be able to end the lease early by purchasing the system outright or negotiating with the company that owns the panels.

If you’re selling your home, the lease can sometimes be transferred to the new owner, but this must be agreed upon in advance. Some firms may remove the system, but there could be fees. Always check the original lease and speak to a solicitor if you’re unsure.

How Much Is A Solar Lease Per Month In The UK?

If you’re in a traditional lease or rent-a-roof scheme, you usually don’t pay anything monthly. The panels are installed at no cost, and you utilise the electricity they generate. Some newer models work differently, with homeowners paying a low fixed rate for the electricity produced.

Is A Solar Panel Lease The Same As Rent-A-Roof?

Yes, they’re essentially the same thing. Rent-a-roof was a common term used in the 2010s to describe schemes where homeowners allowed companies to install solar panels on their roofs for free. In return, the company kept the government’s Feed-in Tariff income.

The homeowner got free or cheaper electricity but didn’t own the system. Whether it’s called a lease or rent-a-roof, the arrangement usually works in the same way.

Sources and References:

• GOV.UK – Solar photovoltaics deployment
• Ofgem – Feed-in Tariffs (FIT)
• Crown Commercial Service – Provision of Power Purchase Agreement
• Energy Saving Trust – Solar Panels
• Ofgem – ECO4 Delivery Guidance
• Department for Energy Security and Net Zero – Warm Homes: Local Grant