Cash purchase
Maximum long-term savings
Highest ROI
Own the system outright
Builds home equity
Large upfront cost
Federal credit expired in 2026
ROOFTOP SOLAR
Own the panels.
Own the savings.
Important - 2026 update
The Section 25D 30% federal residential tax credit expired December 31, 2025. The information below reflects the current 2026 incentive landscape - not the pre-2026 landscape most rooftop solar sites are still showing.
What rooftop solar is
Rooftop solar - for homeowners who want to go further.
Rooftop solar means installing photovoltaic panels on your home's roof to generate electricity. A typical 6-10 kW residential system offsets 50-100% of an average home's annual electricity use and lasts 25-30 years.
The economics changed on January 1, 2026, when the 30% federal residential tax credit (Section 25D) expired. State credits, SRECs, net metering, and the Section 48E commercial credit (which installers use for leased systems) are all still in effect.
Sol Country doesn't install rooftop solar. We explain it honestly, help you figure out if it's right for your situation, and connect you with vetted local installers who compete for your business.
50-100% bill offset$15K-$30K installed25-year asset
Ownership options
Owned vs TPO (lease/PPA) - 2026
The tax credit landscape changed significantly on January 1, 2026. Here's what that means for each ownership type.
Owned (cash / loan)
Buy it outright - no federal credit in 2026
Federal credit: for 2026 owned installationsEXPIRED
State credits, SRECs, net metering, property tax exemptions - all still valid
You own the system and all production
Best long-term ROI - no ongoing payments after loan payoff
TPO (lease / PPA)
Lease or PPA - Section 48E credit through Dec 2027
Section 48E credit: available through December 31, 2027 for leased/PPA systems
Installer claims it and should pass savings to you through lower monthly payments
No upfront cost - but you don't own the system
25-year contract - can complicate home sale
The buy vs lease question has changed in 2026
Before January 1, 2026, the conventional wisdom was clear: buy your solar system with cash or a loan, claim the 30% federal tax credit, and own the asset outright. Leasing was considered the inferior option because you gave up the tax credit.
That calculus has changed.
The Section 25D Residential Clean Energy Credit was terminated by the One Big Beautiful Bill Act, effective December 31, 2025. Homeowners who purchase a solar system in 2026 receive no federal tax credit. The 30% credit is gone.
However, Section 48E - the commercial investment tax credit - still applies to solar systems owned by third parties (leasing companies and PPA providers) through 2032. Those companies can still claim the 30% credit and often pass a portion of that savings through as lower lease payments or better PPA rates.
What this means practically: A homeowner who leases or signs a PPA in 2026 may receive better economics than a homeowner who purchases outright, because the leasing company still gets the 30% credit while the outright buyer gets nothing.
Purchasing (cash or loan) in 2026
No federal tax credit. Full ownership of the system. Benefits from any future home value increase attributable to solar. SREC income in eligible states (MD, VA, DC) goes to you as the system owner.
Leasing in 2026
Leasing company retains the 30% 48E credit and may pass some of it through as lower monthly payments. You do not own the system. Selling your home requires either buying out the lease or transferring it to the new buyer.
Power Purchase Agreement (PPA) in 2026
Similar to a lease but you pay per kWh generated rather than a fixed monthly amount. Leasing company claims the 30% 48E credit. You pay less per kWh than your utility rate and keep the savings on any month solar over-produces.
Sol Country's honest take
Neither purchase nor lease is universally better in 2026 - it depends on your tax situation, credit score, and how long you plan to stay in your home. What IS different from prior years is that lease and PPA options are now more competitive relative to purchase than they were when the 25D credit existed.
Get quotes for both options before deciding. The math has changed.
See solar financing options →The right choice depends on how long you plan to stay and whether you want the asset.
Home assessment
Is your home a good candidate?
Four questions determine whether rooftop solar makes sense for your specific situation.
Question 1 of 4
Do you own your home?
Question 2 of 4
How old is your roof?
Question 3 of 4
What direction does your roof face?
Question 4 of 4
Is your roof shaded by trees or buildings?
Financing options
Four ways to pay for rooftop solar.
Get free quotes →
Solar loan
Own the system with $0 down
Own the panels
$0 down options
Builds equity
Interest over term reduces gain
Federal credit expired in 2026
Solar lease
Simplicity, no maintenance
$0 upfront
Maintenance covered
Section 48E credit (installer) through 2027
Don't own the panels
25-year contract
Annual escalator
Power purchase agreement
Pay only for what panels produce
$0 upfront
Pay per kWh generated
Maintenance included
Don't own the panels
Rate escalator built in
Lease vs buy - 25-year math
System cost
$23,200
25-yr savings (owned)
$56,298
Cash net gain
$33,098
Loan net gain
$7,151
Lease net vs no solar
$4,409
Assumes 14.0¢/kWh · 3.4% annual rate increase (BLS historical) · 0.5%/yr panel degradation · loan at 6.99% APR / 25 yr · lease at 2% escalator · no federal credit (expired Dec 31, 2025).
Incentives in 2026
What's still available after the federal credit expired.
See incentives for your address:
Check →State tax credits
Many states (NY, MA, SC, AZ, NM, others) offer credits between 10-25% of system cost - stackable with utility rebates.
SRECs
Solar Renewable Energy Credits: in NJ, MA, DC, MD, PA, OH, IL, you earn credits per MWh generated and sell them to utilities.
Net metering
Sell excess production back to the grid at retail or near-retail rates. Rules vary by state - 38 states have some form.
Property tax exemption
Most states exempt the added home value from solar from property tax reassessment.
Utility rebates
Some utilities offer one-time rebates ($500-$2,500) on top of state programs. Often first-come, first-served.
Section 48E (TPO only)
Commercial ITC, available through Dec 31, 2027 for leased/PPA systems. Installer claims it and reduces your monthly payment.
Beyond bill savings
Don't forget SRECs in Maryland, Virginia, or DC.
If you're a homeowner in one of these three states, SRECs can add hundreds of dollars a year to your solar payback - separate from your bill savings.
Full SREC guide →Why payback still works here
Colorado, Connecticut, Vermont, and Virginia still have strong net metering.
In these four states, exported solar is credited at full retail rate — meaning the grid effectively acts as a free battery and 5-7 year paybacks are still realistic on solar-only systems. This is a genuine, ongoing selling point for rooftop solar in these markets, and a big part of why California's switch to NEM 3.0 changed the calculus there.
How net metering works, state by state →HONEST GUIDE
Rooftop solar is one of the best investments you can make. Here's how to do it right.
A well-installed rooftop solar system pays for itself in 6-12 years and generates free power for 25+ years after that. The homeowners who regret solar made avoidable mistakes. Sol Country helps you avoid every one of them.
COMMON MISTAKE · INSTALLER RISK
Their company went bankrupt after installation.
Use installers with 10+ years in business and manufacturer-backed warranties. Sol Country only lists verified installers. Your equipment warranty survives any installer bankruptcy - verify it is manufacturer-backed, not installer-backed, before signing.
COMMON MISTAKE · UTILITY DELAYS
Waited 6 months for Xcel to connect the system.
In Colorado, Xcel has had backlogs of 4,000+ interconnection applications. Ask your installer for the current wait time before you sign a contract - not after. In 2026 the typical Colorado wait is 4-8 weeks for most installations.
COMMON MISTAKE · SYSTEM SIZING
Bought too small a system and wish they'd gone bigger.
Size for where you'll be in 5 years - not where you are today. Adding an EV, a heat pump, or a battery later means you'll want more panels. Sol Country's EV calculator shows exactly how much capacity you need if you plan to charge a car at home.
COMMON MISTAKE · NET METERING
Net metering credits reset to zero every year.
Most utilities including Xcel reset net metering credits annually - summer surplus doesn't automatically cover winter bills. A battery solves this. Without a battery ask your installer exactly when credits expire and how to maximize self-consumption.
COMMON MISTAKE · NO MONITORING
Panels underperformed for months before they noticed.
Install a home energy monitor alongside your solar system. The Emporia Vue 3 ($200) shows your exact production and consumption in real time - you'll know immediately if output drops before you lose months of savings without realizing it.
See energy monitors →COMMON MISTAKE · ROOF CONDITION
Had to remove panels for a roof repair - expensive.
Inspect your roof before installing solar. If your roof has less than 10 years of life remaining - replace it first. Removing and reinstalling solar panels costs $1,500-3,000 on top of the roof repair. Do the roof once and do it right.
COMMON MISTAKE · OVERSOLD SAVINGS
Installer promised $200/mo savings. Reality was $60/mo.
Sol Country uses your actual address, NLR sun hours, and EIA utility rates - not a salesperson's best-case estimate. Our savings estimates are conservative by design. Before signing any installer contract run your address through Find My Power to get an independent savings estimate to compare.
Get an independent estimate →BEFORE YOU SIGN ANYTHING
10 questions to ask every installer.
Print this list. Ask every question. Any installer who can't answer all 10 clearly is not the right installer.
- 01Are you licensed and insured in [my state]?Why it matters: Unlicensed installers void manufacturer warranties.
- 02How long have you been in business?Why it matters: Companies under 5 years have higher bankruptcy risk.
- 03Is my equipment warranty manufacturer-backed or installer-backed?Why it matters: Manufacturer-backed warranties survive company closures. Installer-backed warranties don't.
- 04What is the current interconnection wait time in my area?Why it matters: In some areas customers wait 3-9 months after install before generating power.
- 05When do my net metering credits expire?Why it matters: Most utilities reset credits annually - summer surplus doesn't always cover winter bills.
- 06What monitoring system is included?Why it matters: Without monitoring you won't know if panels are underperforming for months.
- 07Is my roof in good condition for the next 25 years?Why it matters: Removing panels for roof repairs costs $1,500-3,000.
- 08What is the realistic - not best-case - payback period?Why it matters: Best-case assumes maximum sun hours and no shading. Ask for the conservative estimate.
- 09What happens to my panels if I sell my house?Why it matters: Leased panels transfer to the buyer - and can make your home harder to sell.
- 10Who do I call for service in 10 years?Why it matters: Installer bankruptcies are common. Know your manufacturer service options.
Get started
Free competing quotes from vetted installers.
Sol Country connects you with multiple installers who compete for your business. No obligation. Completely free.
Compare quotes
EnergySage connects you with 3-5 installers who compete on price. Takes 2 minutes.
Get free quotes →Run the numbers first
Find My Power calculates your exact savings before you talk to anyone.
Find my power →Get free quotes
See what solar costs
at your address.
Sol Country partners with EnergySage to connect homeowners with vetted local installers. Get 3-5 competing quotes with no obligation - from installers who have been screened for licensing, insurance, and customer reviews. Sunrun and SunPower (Complete Solaria) are among the largest active residential solar installers in the US as of 2026.
Vetted installers
Every installer screened for licensing, insurance, and customer reviews
No obligation
Get quotes without committing to anything. No pushy sales calls.
Competing quotes
3-5 installers compete for your business - driving prices down for you
Get free quotes →
Sol Country earns a commission on referrals at no cost to you. Quotes are always free.
Solar financing
Most homeowners pay
$0 upfront.
Solar loans let you start saving immediately with no upfront cost. Monthly loan payments are typically less than your current electricity bill - you save from day one while building equity in your home.
Colorado example - 6kW system:
System cost$18,000
Federal ITC (30%)-$5,400
Net cost$12,600
Loan payment (~5%, 20yr)~$83/mo
Current Xcel bill~$120/mo
Monthly savings from day 1~$37/mo
Largest US solar lender
Goodleap
America's largest solar lender. Fixed rates from 2.99%. Pre-qualify in under 2 minutes with no hard credit pull. Available in all 50 states.
RatesFrom 2.99% APR
Terms5, 10, 15, 20, 25 years
Pre-qualifyNo hard credit pull
StatesAll 50
Clean energy specialist
Mosaic
Solar loans in 30+ states. Strong rates for Colorado and California customers. Mosaic specializes exclusively in clean energy financing.
RatesFrom 3.99% APR
States30+ states
SpecialtySolar + storage only
Pre-qualifying does not affect your credit score. Sol Country earns a commission on funded loans at no cost to you.
Not sure rooftop is right for you?
Find My Power analyzes your address and compares all six energy paths - not just rooftop solar.
Find my power →Sources
Primary sources for this article
- DSIRE — Database of State Incentives for Renewables & Efficiency (NC Clean Energy Technology Center)
- NLR PVWatts Calculator — U.S. Department of Energy
- U.S. Energy Information Administration — State electricity data
- OpenStates — Legislative tracking
- WattTime — Grid carbon intensity
Sol Country reviews these sources on a rolling basis. See our editorial standards for how we source and update data.