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We use your location to provide localized solar offers and incentives.
We serve MA, NH, CT, RI, ME, VT, NJ, PA, and TX
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The federal residential tax credit is gone. Compare all four financing options side by side with real 25-year numbers for your state — and see which one actually saves you the most in 2026.
4
Options Compared
25 yr
Savings Horizon
9
States Covered
$0
Federal ITC for Purchases
Monthly Payment
$0/mo
Paid upfront
Total Paid (25 yrs)
$17,200
25-Year Net Savings
$70,302
Monthly Payment
$116/mo
Total Paid (25 yrs)
$27,768
25-Year Net Savings
$59,734
Monthly Payment
$130/mo
Total Paid (25 yrs)
$56,136
25-Year Net Savings
$31,367
Monthly Payment
$146/mo
$0.18/kWh starting rate
Total Paid (25 yrs)
$62,872
25-Year Net Savings
$24,630
Lower is better. Compared to doing nothing (paying the utility).
With the federal residential tax credit (Section 25D) expired, homeowner cash and loan purchases no longer receive any federal incentive. Lease and PPA providers, however, still claim the 30% ITC under Section 48/48E because they own the system. They pass that benefit to you through lower monthly rates. This makes lease and PPA options significantly more competitive than they were before 2026 — especially in states like Massachusetts where the $10,000 state incentive helps cash buyers but still leaves a meaningful gap compared to pre-2026 federal credits.
You pay the full system cost upfront and own the system outright from day one. After accounting for state incentives (there is no longer a federal credit for homeowner purchases), every kilowatt-hour the system produces is pure savings against your utility bill. Cash buyers typically see the highest total savings over 25 years because there are no interest charges, dealer fees, or escalator clauses eating into the return.
Best for: Homeowners with capital who plan to stay 10+ years.
You finance the purchase through a solar-specific loan, typically with a low advertised APR (0.99%–1.99%). The catch is the dealer fee: lenders add 15–25% to the loan principal to subsidize the low rate. A $26,000 system can become a $32,500 loan before your first payment. You still own the system, and state incentives reduce the principal, but total cost over 20 years can exceed what you would pay with a lease.
Best for: Homeowners who want ownership but cannot pay cash. Compare total cost carefully.
The solar company installs, owns, and maintains the system on your roof. You pay a fixed monthly amount — typically about 65% of your current electric bill — with an annual escalator around 2.9%. Because the installer owns the system, they claim the 30% federal ITC under Section 48/48E and pass that benefit to you through lower payments. You save from month one with $0 down and zero maintenance responsibility.
Best for: Homeowners who want immediate savings, $0 down, and no maintenance risk.
Similar to a lease, but instead of a fixed monthly payment, you pay a per-kilowatt-hour rate for the electricity the system produces. The starting rate is typically 35% below your utility rate, with a 2.9% annual escalator. In months when the system produces more, you pay more (but still less than the utility). In low-production months, you pay less. The installer owns the system and claims the federal ITC.
Best for: Homeowners who want to pay only for actual production with no upfront cost.
Before 2026, buying solar was almost always the financially superior option. Homeowners received a 30% federal tax credit under Section 25D, which on a $26,000 system meant $7,800 back at tax time. That credit is now gone — the One Big Beautiful Bill Act (OBBBA) let Section 25D expire on December 31, 2025.
What did not change: third-party-owned systems (leases and PPAs) still qualify for the 30% ITC under Section 48/48E. The financing company claims the credit because they own the system, and they pass the savings to you through lower monthly rates. This means lease and PPA pricing effectively includes a 30% federal subsidy that cash and loan buyers no longer receive.
The result is a dramatically narrowed gap between owning and leasing. In states with strong state incentives (NJ, MA, CT, RI, NY), buying still produces the highest 25-year savings because those state programs partially replace the lost federal credit. But in states without state incentives (NH, ME), the economics have shifted significantly toward lease and PPA options.
Bottom line: the “always buy, never lease” advice from the pre-2026 era is no longer accurate. Your state, your utility rate, and your financial situation now determine which option truly saves the most.
| Your Situation | Cash | Loan | Lease | PPA |
|---|---|---|---|---|
| Have $20K+ available | — | — | — | |
| Want $0 down | — | |||
| State has strong incentives | — | — | ||
| No state incentives | — | — | ||
| Staying 10+ years | ||||
| May move in 5-7 years | — | — | ||
| Want to increase home value | — | — | ||
| Want zero maintenance | — | — | ||
| Maximize long-term savings | — | — | — | |
| Want immediate savings, no risk | — | — |
Every home is different. Get a side-by-side comparison of cash, loan, lease, and PPA pricing tailored to your roof, your utility rate, and your state incentives. Free, no obligation.