Solar financing in 2026: the credit died, the math didn't
The 30% federal purchase credit is gone — it ended December 31, 2025. Companies still advertising it are selling you last year. Here's what actually works now, compared honestly.
Cash, loan, lease, PPA — side by side
Every quote we deliver prices your options together, with total cost of ownership over 25 years. Here's the honest shape of each.
| Path | Who owns it | Federal credit in 2026? | The honest trade-off |
|---|---|---|---|
| Cash purchase | You | No — 25D expired 12/31/2025 | Best lifetime savings and home-sale simplicity; biggest upfront check. Payback is longer than it was in 2025 — we'll show you the real curve. |
| Solar loan | You | No | Ownership without the upfront hit. Watch dealer fees buried in "low APR" offers — we disclose them as a line item, always. |
| Lease | Leasing company | Indirectly — company claims 48E (in service by end of 2027), reflected in your rate | Low or zero money down and the last federal-credit pathway. Check the escalator clause and home-sale transfer terms before signing anything. |
| PPA | PPA provider | Indirectly — same 48E pathway | You buy the power, not the panels, at a set per-kWh rate. Simple, but compare that rate honestly against your utility's — including escalators. |
Our commitment: we don't steer you to whichever option pays us most. Your quote shows all viable paths with the same 25-year math, dealer fees and escalators included. Unusual in this industry; normal in construction.
Incentives that survived into 2026
- 48E via lease/PPA — the financing company's credit, passed through as lower payments (systems generally in service by end of 2027; timelines tightened July 2026).
- Texas property-tax exemption — the home value solar adds is exempt from property taxes statewide. (Texas has no state income tax, so there's no state credit — the real action here is buyback plans and utility programs.)
- Utility rebates & programs — including battery incentives and demand-response payments in some territories.
- Property tax exemptions — many states exclude solar's added value from property tax assessment.
- Net metering / export credits — utility-dependent; shapes whether a battery belongs in your design.
Every incentive on your quote is verified against current law on the day we write it — not recycled from last year's sales sheet.
The "is it still worth it?" question
Fair question in 2026. Rising electric rates and falling equipment costs are doing quiet work in solar's favor, but payback periods are real and market-dependent. We wrote up the full, honest picture:
What just changed for leases and PPAs?
A quiet but important deadline passed on July 4, 2026. Under the 2025 tax law, lease and PPA providers keep their 30% commercial credit on two tracks: projects they began (or bought equipment for) before that date have a multi-year window to come online, while anything started after it must be in service by December 31, 2027. Translation for homeowners: third-party options still carry federal-credit value, but availability now depends on your provider's pipeline — and the economics won't improve with waiting, since a separate depreciation benefit steps down in 2027.
What we do about it: when a lease or PPA is on your shortlist, we confirm the provider's credit eligibility for your project's timeline before you sign, and we put the four numbers that decide whether the deal is good — rate, escalator, term, transfer terms — on page one of the comparison. If the pass-through savings aren't real, buying usually wins, and we'll show you that math side by side.
Financing questions, answered
What solar incentives are still available in 2026?
The federal purchase credit (25D) expired 12/31/2025. Still available: the 48E pathway through leases/PPAs (on deadlines that tightened in July 2026 — generally in service by end of 2027), state credits and rebates where offered, utility programs, property tax exemptions in many states, and net metering or export credits depending on your utility. The mix depends heavily on where you live.
Is buying or leasing better in 2026?
It genuinely depends now. Buying keeps ownership and full long-term savings but no federal credit. Leases/PPAs carry the last federal-credit pathway and lower early costs — but check contract length, escalators, and home-sale transfer terms. We quote both with your actual numbers.
Does solar still pay for itself without the tax credit?
In many markets yes — longer payback than 2025, offset by rising electric rates, cheaper equipment, and state/utility incentives. In weaker markets it's tighter, and we'll say so. The only honest answer is your rates, roof, and usage — which is what the free quote is for.
See all four paths priced for your home
One visit, one itemized quote, every viable option side by side over 25 years. Then the decision is yours — no follow-up pressure calls.
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