Making the decision regarding how to finance the solar energy system for your KB home depends on your preferences, needs and financial goals.

The following information and a personal consultation with the solar energy system supplier can help you answer this important question.

  • It’s your choice – KB Home gives you the freedom and flexibility to choose your solar finance method—you decide! If you select a solar lease, you are “renting” the solar energy system from the solar energy system supplier that owns it. If you pay cash or finance the cost of the system in your mortgage, you own the system. Both choices offer different advantages and responsibilities.
  • Solar system consultation – During an individual appointment online or over the phone, the solar system supplier will present you with information about the solar energy system options for your KB home and provide details about finance choices. You will also have time to ask questions. If you need help scheduling this consultation, please ask your KB Home sales counselor.

Leasing and purchasing both have advantages, so it depends on your preferences and situation. A few other things to consider that may help guide your decision:

  • How long do you anticipate owning your home? Would it be long enough to maximize the benefits of ownership? Could you take advantage of the tax credit? You’ll need to consult a tax adviser for those details.*
  • Do you generally like to own things and take on the benefits and responsibilities of ownership? Do you generally like to lease?
  • When considering your finance options, we encourage you to think about the big picture and your priorities, which can include personalizing your new home at the Design Studio.
  • If you are leasing, you should realize that upon selling your home, the new owner will have to assume the lease, unless you pay it off first.
  • If you are purchasing, you need to be comfortable taking responsibility for the solar energy system’s operation and maintenance unlike with a lease, under which the solar energy system supplier handles all the upkeep. Bear in mind that though you are responsible as the owner for the solar energy system’s operation and maintenance, the solar energy system comes with a 25-year limited warranty from the solar energy system supplier.

Comparison of Solar Financing Choices:

Solar Lease

  • System is owned by a third-party financier, with no upfront financing costs to lessee.
  • No minimum credit score is required to qualify.
  • Solar electricity rates will be fixed for 20 years. 
  • Solar electricity output performance is guaranteed by the solar energy system supplier. 
  • A 20-year Operation and Maintenance Agreement with the solar energy system supplier is included. 
  • You must either transfer or buy out lease at time of home resale. 
  • Free access to the solar energy system supplier's solar electricity output data and app to track your system's performance are available. 
  • You must comply with the terms and conditions of the lease, which includes, but is not limited to, that you are the primary occupant in the home.

Solar Purchase

  • System price can be included in your mortgage or paid with cash, at your election; you own the system.
  • Energy costs are reduced.
  • You may qualify for Federal Solar Investment Tax Credit.*
  • A 25-year product and performance limited warranty is included.
  • System does not increase property taxes.
  • System may increase resale value compared to homes without a solar energy system.
  • Free access to the solar energy system supplier’s solar electricity output data and app to track your system’s performance are available.
  • As owner, you may expand, alter or replace the solar energy system later.

Click here to learn more about the cost of solar.


©2021 KB Home (KBH). Consistent with California energy regulations, new homes must be equipped with solar panels. Solar system may be leased for a monthly payment, or purchased for an additional cost that may be eligible for mortgage financing. The required size of the solar system depends on several factors, including home size and climate zone. For more information, see sales agent and Solar Energy System Addendum. This is not a representation or guarantee of loan qualification, affordability of homeownership, eligibility for a federal tax credit, state tax credit or any other tax benefits of homeownership. See your tax advisor for details. Program, rates, fees, terms and conditions are subject to change.