Solar Leasing vs Buying Outright
Lease, PPA or Own Your System? (2026)

Three ways to get rooftop solar

SEDA's Solar ATAP page sets out the modes of purchase side by side. Solar ATAP is the continuation of the Net Energy Metering (NEM) programme, which concluded at the end of June 2025. The table summarises what it says about each.

How solar leasing works

With a lease, a solar investor puts the system on your roof, its contractors install it, and you pay a fixed monthly amount for the use of the system. You still get the benefit of the electricity it generates on your bill, and the investor looks after maintenance and performance. The attraction is obvious: little or nothing to pay at the start, and no worries about servicing.

The trade-offs are also clear. You pay the lease for its whole term whatever your bill does, the saving each month is the difference between what solar saves you and the lease payment, and SEDA itself describes the payback as longer than buying. SEDA's summary says the system is owned by the site owner after the lease period ends; read the handover clause in your contract, including the condition the system is handed over in.

How a PPA differs from a lease

A PPA is not a lease. Under a PPA the system is owned by the investor and you buy the electricity it produces at an agreed rate per kWh. Any upfront payment is negotiable. Your payment rises and falls with how much the system generates, while a lease payment stays fixed. SEDA also notes that providers may offer a hybrid of both.

Buying outright, or with a loan or card

SEDA's page confirms that households can buy the system outright with cash, a personal loan or a credit card. With cash you pay once; with a loan or card the monthly payment depends on the system cost and the interest rate. Either way the homeowner owns the system, and maintenance and performance follow the manufacturer's terms. Our solar panel cost guide prices systems by size and explains how payback works.

Because you keep all the savings, buying gives the shortest payback. Our cost guide notes that a household with RM400+ monthly bills typically reaches payback closer to 5–6 years, while a modest RM150 monthly bill may take 8–10 years.

How lease and PPA payments are collected

SEDA describes two collection methods. In a direct contract, it is a two-party agreement between you and the investor, who collects payment from you. In the tripartite SARE arrangement, you, the investor and TNB are all parties, and payment is collected through your electricity bill; SEDA states that TNB charges a 2 sen/kWh service fee under this arrangement and that non-payment of an outstanding amount can lead TNB to disconnect the supply. Know which method your contract uses before you sign.

Check the provider is registered

Leasing and PPA providers are solar PV investors, and SEDA runs a separate registration and directory for them, the Registered Solar PV Investor (RPVI), distinct from the Registered PV Service Provider (RPVSP) scheme for installers. Our guide to choosing a solar installer explains the difference and how to check SEDA's directories before signing anything.

Questions to ask before signing a lease or PPA

1. How long is the term, and what is the total you will pay over it?
2. What happens at the end: do you own the system, is it removed, or is there a renewal?
3. Is payment by direct contract or through the TNB bill, and what fees apply?
4. What if you sell or rent out the house during the term? Can the contract be transferred?
5. Who pays if the roof needs repairs and the panels must be removed and refitted?
6. What maintenance and performance does the investor commit to, and what if generation falls short?
7. What does it cost to end the contract early?

Sort out the roof first

Whichever route you choose, the roof has to outlast the panels on it. Our solar cost guide warns that installing panels on a roof that needs re-tiling within 3 years means dismounting and remounting the array, adding RM3,000 – RM8,000 in extra cost. Under a lease, check who pays for that. Leaks around mounting points are another common problem; our solar panel roof leak guide covers them.

Which option suits which household

• Buying suits owners who plan to stay, have the cash or a sensible loan, and want the full savings and the shortest payback.
• Leasing suits households who want solar without an upfront payment and value maintenance being handled, and who accept a longer payback.
• A PPA suits those who only want to pay for what the system produces and do not want to own equipment.
• None suits a heavily shaded roof, a roof due for replacement soon, or a very low bill; fix the roof or reduce usage first.

For strata homes, roof access and approvals come first; our condo and townhouse solar guide explains the issues.

Outright purchase costs for comparison

No ClickBina guide publishes lease or PPA rates, which vary by provider and contract. For comparison, these are the outright installed costs on our solar cost guide (indicative 2026).

If panels are already on the roof and it leaks, ClickBina leak detection is a separate paid visit at RM300 – RM800.

How ClickBina can help

Roof and solar-related works are quoted case by case. WhatsApp us your job details for a quote: the house type, the roof, your monthly bill, and whether you are comparing a lease offer with buying. We reply within the hour, the price we agree is a flat price with no hidden charges, and a site visit is RM150, waived if you go ahead.

Sources & methodology

• SEDA Malaysia — Solar ATAP, mode of purchase — outright purchase, solar leasing and PPA; payment collection methods; TNB service fee; RPVI.
• ClickBina solar panel cost guide — installed cost by system size, payback, remounting cost.
• ClickBina solar installer guide — RPVSP and RPVI registration.
• ClickBina solar panel maintenance guide — leak detection and site visit wording.

How we estimated prices: every RM figure on this page is quoted unchanged from the ClickBina guides named above. They are indicative ranges for 2026, not fixed rates; no lease or PPA rate is published.