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No federal tax credit for cash or loan purchases. PPA and lease let the financing company claim 48/48E at 30% — but only until July 4, 2026. Here is a complete comparison for Vermont homeowners.
Cash
$30,500
best 25-yr return
Loan
6-8%
APR typical
PPA/Lease
$0 down
48/48E available
GMP Battery
$55/mo
add-on option
Side-by-side comparison of all Vermont solar financing options for a typical 10 kW system at $3.05/W.
| Feature | Cash | Loan | PPA | Lease |
|---|---|---|---|---|
| Upfront Cost | $30,500 | $0-5,000 down | $0 | $0 |
| Monthly Payment | $0 | $230-320/mo | $140-200/mo | $130-190/mo |
| Federal ITC | $0 (25D expired) | $0 (25D expired) | 30% (48/48E — company claims) | 30% (48/48E — company claims) |
| System Ownership | You own | You own | Company owns | Company owns |
| NM Credits Go To | You | You | Company (usually) | Company (usually) |
| Maintenance | Your cost | Your cost | Company covers | Company covers |
| 25-Year Total Cost | ~$30,500 | ~$42,000-53,000 | ~$42,000-60,000 | ~$39,000-57,000 |
| Payback Period | ~13 years | ~15-18 years | Immediate savings | Immediate savings |
| Home Sale Impact | Increases value | Increases value | Lease transfer needed | Lease transfer needed |
| Deadline | None | None | July 4, 2026 (48/48E) | July 4, 2026 (48/48E) |
Based on 10 kW system at $3.05/W average. Loan assumes 7% APR, 15-year term. PPA/Lease rates vary by provider. 48/48E deadline requires construction beginning by July 4, 2026.
Detailed breakdown of each financing path including pros, cons, monthly payments, and total cost.
Pay upfront, own the system outright. No federal tax credit (25D expired). All savings and NM credits go to you.
Monthly Payment (10 kW)
$0 (paid upfront)
25-Year Total Cost
~$30,500
Pros
Cons
Finance through a VT credit union or bank. You own the system and keep all NM credits.
Monthly Payment (10 kW)
$230-320/mo (15-20 year terms)
25-Year Total Cost
~$41,000-51,000 with interest
Pros
Cons
A financing company owns the system on your roof. They claim the 48/48E ITC (30%), you buy power at a fixed rate below utility price.
Monthly Payment (10 kW)
$140-200/mo (fixed PPA rate)
25-Year Total Cost
~$42,000-60,000
Pros
Cons
Similar to PPA — financing company owns the system. Fixed monthly payment regardless of production.
Monthly Payment (10 kW)
$130-190/mo (fixed lease)
25-Year Total Cost
~$39,000-57,000
Pros
Cons
Add GMP's battery lease to any solar installation. $55/month for 2 Tesla Powerwalls or 2 Enphase IQ Battery 10C units.
Monthly Payment (10 kW)
$55/mo (battery lease only, add to solar)
25-Year Total Cost
~$6,600 for 10-year term (battery only)
Pros
Cons
The Section 48/48E ITC at 30% is only available for third-party owned systems (PPA/lease) that begin construction before July 4, 2026. With Vermont's CPG requirement adding 2-4 weeks to permitting, you need to sign a PPA or lease by April-May 2026.
After July 4, 2026: No financing option will include any federal tax credit. PPA/lease rates will likely increase to account for the lost ITC.
Quick decision framework based on your financial situation and goals.
Common questions about financing solar in Vermont without federal tax credits.
It depends on your priorities. Cash purchase offers the highest 25-year return (~$30,500 cost, 13-year payback, 12+ years free electricity). A credit union loan lets you go solar with $0-5,000 down but interest (6-8% APR) significantly increases total cost. PPA/Lease offers $0 down and immediate savings, with the financing company claiming the 48/48E ITC at 30% — but you do not own the system. PPA/Lease has a July 4, 2026 deadline.
Not directly. Section 25D (homeowner ITC) expired Dec 31, 2025. You receive $0 whether you pay cash or take a loan. The only way to access any federal credit is through a PPA or lease, where the financing company owns the system and claims Section 48/48E at 30%. The company passes some savings through as a lower rate. This requires construction to begin before July 4, 2026.
A typical VT solar loan runs 6-8% APR over 15-20 years. For a 10 kW system ($30,500), that means monthly payments of $240-$330 and a total cost of $42,000-$53,000 over the loan term. With no federal ITC to offset, the interest significantly increases your total cost. Vermont credit unions (VSECU, NEFCU) often offer competitive rates. Some national solar lenders also operate in VT.
In a PPA (Power Purchase Agreement), you pay a fixed rate per kWh for electricity the system produces — like buying power at a discount. In a lease, you pay a fixed monthly amount regardless of production. Both involve a third-party company owning the system on your roof. Both allow the company to claim the 48/48E ITC at 30%. The main difference is billing structure: variable (PPA) vs. fixed (lease).
HEAR rebates are for heat pumps, not solar panels. Vermont has $29.2M allocated but has not launched the program. If you plan to install both solar and a heat pump, you could wait for HEAR to help with the heat pump portion. However, net metering rates decline annually and the 48/48E deadline (July 4, 2026) is approaching. Consider installing solar now and adding a heat pump later when HEAR launches.
The GMP battery lease ($55/month for 2 Powerwalls or Enphase batteries, 10-year term) can be added to ANY solar financing option. Cash + battery lease is a popular combination: you own the solar, GMP owns the batteries. Total monthly cost: $0 for solar (paid upfront) + $55 for batteries = $55/month. This gives you backup power, VPP participation, and increased self-consumption.
The PPA or lease agreement must be transferred to the new homeowner. Most contracts include a transfer clause, but the buyer must qualify and agree to assume the contract. Some buyers see this as a negative (they inherit a 20-25 year obligation), while others view it positively (immediate electricity savings). If the buyer declines, you may need to buy out the remaining contract, which can cost thousands.
Cash is better for total savings. With no ITC to offset the cost, a loan's interest (6-8% APR) adds $12,000-23,000 over the term. Cash gives you a 13-year payback and ~$20,000+ in net savings over 25 years. However, cash requires ~$30,500 upfront. If you cannot afford that, a credit union loan at the lowest available rate is the next best option. Avoid dealer fees and hidden markups in solar-specific loans.
Pair your financing decision with deeper data on VT solar programs.
Know your cost before choosing financing
Read moreFull analysis of post-ITC economics
Read moreAdd battery to any financing option
Read moreNM credits affect every financing option
Read moreSales + property tax savings for all options
Read moreCompare financing for your specific roof
Read moreGet a personalized quote showing cash, loan, and PPA/lease options for your specific roof and utility. Includes GMP battery program details.
PPA/lease 48/48E deadline: July 4, 2026. Cash requires no deadline but NM rates decline annually. Act soon for best economics.