Solar lease vs PPA vs buying in 2026
Not as a homeowner who buys a system. The Section 25D residential credit ended for systems installed after December 31, 2025. A leasing company that owns the system may still claim a business credit under Section 48E, subject to construction and placed-in-service deadlines, and can pass part of that value on through a lower rate.
| Cash | Loan | Lease / PPA | |
|---|---|---|---|
| Upfront cost | Full | Low/none | None |
| Who owns it | You | You | Provider |
| Federal credit | Ended (25D) | Ended (25D) | Provider may claim (48E) |
| Lifetime savings | Highest | Medium | Lower, but immediate |
| Maintenance | You | You | Usually provider |
This is general information, not tax or financial advice. Confirm current rules with a tax professional.
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Frequently asked questions
Can I still get the 30% solar tax credit in 2026?
Not as a homeowner who buys a system. The Section 25D residential credit ended for systems installed after December 31, 2025. A leasing company that owns the system may still claim a business credit under Section 48E, subject to construction and placed-in-service deadlines, and can pass part of that value on through a lower rate.
Is leasing or a PPA better than buying now?
Buying usually gives the most lifetime savings if you have cash or a low-rate loan and plan to stay. A lease or PPA has no upfront cost and may reflect a federal credit you can no longer claim, but you do not own the system, and the escalator and transfer terms matter.
What should I check in a solar lease or PPA?
Check the annual escalator (0% to 2.99% is common), the contract length, who services the system, what happens when you sell the home, buyout options, and the financial strength of the company that owns the contract.