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Section 25D expired December 31, 2025. Homeowners who buy solar with cash or a loan get $0 federal tax credit. But a hybrid financing structure called Propel passes the commercial ITC (Section 48) back to you as a built-in discount.
For nearly 20 years, the Section 25D Investment Tax Credit let homeowners deduct 30% of their solar installation cost from their federal taxes. That era ended on December 31, 2025. Here is the timeline:
The bottom line for homeowners
If you buy solar with cash or a traditional loan in 2026, your federal tax credit is $0. Not 22%. Not 10%. Zero.
But the commercial ITC survived
Section 48/48E (the commercial Investment Tax Credit) is still available for third-party system owners — financing companies, leasing companies, and commercial entities — for projects that begin construction before July 4, 2026.
The key insight
The ITC did not disappear. It just moved from homeowners to commercial entities. The question is: can a homeowner still access it? The answer is yes — through a structure called Propel.
With the residential ITC gone, your financing choice matters more than ever. Here is an honest comparison of your three options.
Advantages
Drawbacks
Best for: Homeowners with cash who plan to stay 15+ years and can absorb full cost.
Advantages
Drawbacks
Best for: Homeowners who want $0-down solar and are OK never owning the system.
Advantages
Drawbacks
Best for: Homeowners in ME or TX who want $0-down, ITC benefit, and full ownership.
Propel is not a marketing gimmick. It is a structured finance mechanism that uses the same tax code provisions that power commercial solar projects. Here is exactly how it works, step by step.
Concert Finance (the third-party owner) buys the panels, inverter, and installation. You pay $0 upfront.
Because Concert Finance is a commercial entity that owns the system, they qualify for the Section 48/48E Investment Tax Credit — the same credit that makes commercial solar projects work.
The ITC savings are baked into your deal through the Propel factor — 0.701 in Maine, 0.749 in Texas. You only finance ~70-75% of the system cost.
Your Propel payment is fixed for the entire term. No escalators. No surprises. And it is designed to be less than what you currently pay your utility.
The panels become yours. The monthly payment ends. You keep all the energy savings for the remaining 20+ years of panel life.
This is 100% legal and well-established
Section 48 was designed for exactly this structure. Third-party ownership is the same mechanism that makes commercial solar farms, corporate PPA agreements, and community solar projects work. Concert Finance is a licensed, regulated financing entity. The IRS has issued clear guidance on third-party ownership structures qualifying for the ITC.
Real Propel pricing from the two states where it is currently available. These are representative examples — your specific numbers depend on system size, roof, and usage.
9 kW System
Savings grow every year as CMP rates increase. Your Propel payment stays fixed.
10 kW System
TX has lower rates but excellent sun. Savings accelerate as ERCOT rates rise.
Your savings grow every year. Your payment does not.
Utility rates have increased an average of 3-5% annually over the past decade. Your Propel payment is locked for the entire term. By year 3, your monthly savings are significantly larger than day 1. By year 5, you own the system outright and your electric cost drops to near zero.
Propel is currently available in Maine and Texas only. These are the two states where NuWatt has partnered with Concert Finance to offer the hybrid ownership structure. We are actively working to expand to additional states.
The best $0-down option is currently a solar lease or PPA. These give you immediate savings because the third-party owner claims the Section 48 ITC. However, you do not own the panels and typically face escalating payments over a 20-25 year contract.
If Propel becomes available in your state, we will update this page immediately.
Regardless of financing method, these state-level programs remain active and can significantly reduce your costs:
The Section 48 commercial ITC is available for projects that begin construction before July 4, 2026. After that date, even Propel's hybrid structure may not include the 30% benefit.
“Begin construction” under IRS rules means either physical work of a significant nature has started, or you have incurred at least 5% of the total project cost. NuWatt and Concert Finance manage this timeline for you — but you need to start the process well before July 4.
We recommend starting your Propel application no later than May 2026 to ensure adequate time for design, permitting, and safe-harbor documentation.
Yes. Section 25D (the residential solar Investment Tax Credit) expired December 31, 2025 under the One Big Beautiful Bill Act signed July 4, 2025. If you purchase solar with cash or a traditional loan in 2026, your federal tax credit is $0. There is no phase-down — it is fully repealed.
Yes, through Propel hybrid financing (currently available in Maine and Texas). A third-party financing company (Concert Finance) owns the system and claims the Section 48 commercial ITC. They pass the 30% savings to you through a reduced financed amount. You own the system at year 5.
No. Unlike a lease, Propel transfers full ownership to you at year 5. Your monthly payment is fixed — no escalators. You are not paying for energy usage (like a PPA). You are financing a system that becomes yours.
Section 48/48E requires that construction begins before July 4, 2026. After that date, even the commercial ITC may not be available. If you are considering Propel, you need to have your project underway before this deadline.
Yes. State-level programs are separate from the federal ITC and remain active. Examples include Efficiency Maine rebates, SMART incentives in Massachusetts, ADI/SREC-II in New Jersey, REF rebates in Rhode Island, and Energize CT programs. These stack on top of Propel or any other financing method.
Section 25D was the residential ITC — homeowners who bought solar could claim 30% on their personal tax return. It expired Dec 31, 2025. Section 48/48E is the commercial/third-party ITC — businesses and financing companies that own solar systems can claim 30% (or more with bonus credits). Propel uses Section 48 by having a financing company own the system temporarily, then transfer ownership to you.
Propel is available in Maine and Texas. Check your eligibility and see your estimated savings in under 2 minutes.
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