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Get a Free QuoteThe most surprising finding in 2026 solar economics: financing through Propel can actually cost less than paying cash. With no residential tax credit available for cash buyers, Propel's ability to capture the 30-50% ITC through TPO changes the math entirely.
$30,000
Cash cost (no ITC available in 2026)
$18K-$21K
Propel principal (after ITC reduction)
30-50%
ITC that only TPO can capture in 2026
Quick Answer
In 2026, Propel can be cheaper than paying cash for solar. Here is why: cash buyers pay the full $30,000 for a 10 kW system with no federal tax credit (Section 25D expired). Propel captures the 30-50% Section 48E ITC through TPO, reducing the financed amount to $15,000-$21,000. Even after 25 years of interest at 8.49-10.49% (rates effective May 25, 2026), the total Propel cost ($46,800-$66,500 depending on ITC percentage) is often comparable to or lower than the $30,000 cash price. And with Propel, you keep your $30,000 invested rather than tied up in roof panels. Cash wins on simplicity and immediate ownership; Propel wins on total cost and capital efficiency.
For decades, the conventional wisdom was clear: if you can afford to buy solar with cash, that is the cheapest option. Pay once, own forever, no interest. This was true when the 30% residential ITC (Section 25D) was available — cash buyers claimed the tax credit, reducing their effective cost to approximately $21,000 on a $30,000 system.
In 2026, the math has fundamentally changed. Section 25D expired. Cash buyers pay $30,000 and receive zero federal tax credit. But the commercial ITC under Section 48E is alive and well — available only through third-party ownership structures like Propel. This creates a scenario where financing is genuinely cheaper than paying cash.
At 40% ITC, Propel costs approximately $13,500 more in total payments than cash. But you kept your $30,000 — which at 7% annual returns grows by approximately $132,000 over 25 years. The net financial position with Propel is dramatically better.
Understanding the ITC landscape is essential to this comparison. Here is how the tax credits work in 2026 and why they create such a significant gap.
The residential clean energy tax credit (Section 25D) provided a 30% tax credit directly to homeowners who purchased solar. It expired at the end of 2024. In 2026, individual homeowners who buy solar (cash, HELOC, or personal loan) receive zero federal tax credit. This was the tax credit that made cash purchases the obvious financial winner for decades.
The commercial ITC under Section 48E is available to businesses and commercial entities that own solar systems. When a TPO company (like Concert Finance's tax equity partner) owns the system on your roof, they claim this credit and pass the savings to you through reduced costs.
ITC Stack Available Through Propel:
This ITC gap is the single most important factor in the Propel vs cash comparison. A $30,000 cash purchase with $0 ITC vs a Propel system with $9,000-$15,000 ITC captured — that is a $9,000-$15,000 head start for Propel before interest is even considered. Even at a higher APR, the lower principal makes Propel competitive with or cheaper than cash.
Beyond the ITC advantage, there is a second financial dimension: opportunity cost. When you pay $30,000 cash for solar, that money is locked in roof panels. If you use Propel instead, your $30,000 stays available for investment.
| Year | At 5% Return | At 7% Return | At 9% Return |
|---|---|---|---|
| Year 5 | $38,288 | $42,077 | $46,158 |
| Year 10 | $48,867 | $59,015 | $71,039 |
| Year 15 | $62,368 | $82,759 | $109,328 |
| Year 20 | $79,599 | $116,090 | $168,265 |
| Year 25 | $101,591 | $162,821 | $258,954 |
Assumes compound annual growth with no additional contributions. Real returns vary. Past performance does not guarantee future results.
Cash Purchase Path
Propel Path (40% ITC)
The Propel homeowner ends up approximately $118,000 better off by keeping the $30,000 invested and financing through Propel. This is the power of opportunity cost combined with ITC capture.
Important caveat: this analysis assumes disciplined investment of the $30,000. If the money would sit in a savings account or be spent on other things, the opportunity cost advantage diminishes significantly. The comparison is most relevant for homeowners who would invest the funds in a diversified portfolio.
Despite the ITC math, cash purchase has genuine advantages that matter to some homeowners. This analysis would not be complete without acknowledging them.
Cash purchase is the simplest solar transaction. Pay the installer, own the system, done. No loan payments for 25 years, no TPO phase, no third-party investor, no ESA. For homeowners who value simplicity and dislike debt of any kind, this is significant.
Day-one ownership with no strings attached. No waiting until year 5, no TPO company involved, no loan servicer. The system is 100% yours from the moment the installer leaves. For appraisals, home sales, and peace of mind, immediate ownership is valuable.
Cash buyers can install any panels, inverters, and batteries they choose. Want premium REC Alpha panels with Enphase microinverters and a Tesla Powerwall? Cash makes it possible. Propel is limited to Silfab 440W panels with the inverter specified by the installer.
Zero interest. Your $30,000 buys $30,000 of solar equipment — period. With Propel, even at a reduced principal, you pay interest for 25 years. If interest rates bother you philosophically or if you have a strong aversion to debt, cash eliminates this entirely.
Cash purchases are not tied to the Section 48E construction deadline of July 4, 2026. You can buy at any time without worrying about missing a tax credit window. This removes urgency and allows you to shop for the best deal on your own timeline.
Cash works everywhere. Propel is limited to Maine and Texas (with waitlist states). If you are in a state where Propel is not available, cash is always an option regardless of geography.
The ITC percentage significantly affects the comparison. Here is how Propel compares to cash at three different ITC levels for a $30,000 system.
$15,000
Propel principal
~$37,000
Propel 25yr total
$30,000
Cash total
Propel +$7K
But you keep $30K invested
$18,000
Propel principal
~$44,400
Propel 25yr total
$30,000
Cash total
Propel +$14.4K
But you keep $30K invested
$21,000
Propel principal
~$51,800
Propel 25yr total
$30,000
Cash total
Propel +$21.8K
But you keep $30K invested
In all three scenarios, cash has a lower total payment. But in all three scenarios, the Propel homeowner who invests the $30,000 comes out ahead when considering net financial position. The higher the ITC percentage, the smaller the gap — and at 50% ITC, the total payment difference is only $7,000 spread over 25 years.
Your specific ITC percentage, system size, and local electricity rates determine exactly how Propel compares to cash for your situation. Get a free Propel quote to see the real numbers.
NuWatt provides this guide as an independent informational resource. Propel is a product of Concert Finance / SolSource.