While some of the wording may be vague - you have to pay attention to the wording.
Leased equipment does not belong to you - so it can't be considered to be a home improvement.
<a rel="nofollow" target="_blank" href="
https://www.irs.gov/pub/irs-drop/n-13-70.pdf">https://www.irs.gov/pub/irs-drop/n-13-70.pdf</a>
This is old, but still applicable. Look at page 6 of 12 and Question & Answer to #15
"For purposes of both credits, costs are treated as being paid when the original installation of the item is completed,"
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https://www.irs.gov/pub/irs-pdf/i5695.pdf">https://www.irs.gov/pub/irs-pdf/i5695.pdf</a>
If you are leasing you aren't paying the cost of the equipment.
"If you made energy saving improvements to more than one home that you used as a residence during 2017" Leased items don't count as improvements to your home.
"You must reduce the basis of your home by the amount of any credit allowed"
Purchased solar panels increase the basis of your house so the basis would also be reduced by the amount of the credit. Again, leased panels don't qualify as improvements.
If you had a lease-purchase agreement, the equipment would eventually qualify as being purchased and be considered a permanent improvement to your home.
