The federal tax credit
is gone. Solar still
makes sense. Here's why.
The 30% federal residential solar tax credit expired December 31, 2025. But lease and PPA programs still access the commercial ITC — and pass those savings to you. Sol Country explains every option.
The credit expired.
The savings didn't.
The Section 25D federal residential solar tax credit — which gave homeowners 30% off their solar installation — expired on December 31, 2025. This affects homeowners who purchase their own system with cash or a loan.
It does not affect lease programs (Palmetto LightReach), PPAs (Power Purchase Agreements), community solar subscriptions, or balcony solar kits. Lease and PPA providers still own the systems and claim the commercial ITC — passing those savings to you through lower monthly payments.
- Cash purchase of rooftop solar
- Solar loan (homeowner-owned)
- DIY solar installations
- Lease programs (LightReach)
- Power Purchase Agreements
- Community solar subscriptions
- Balcony solar kits
- Battery storage (separate credit)
- Heat pump HEAR rebates
Many states still offer solar tax credits independent of the federal program. Colorado, Maryland, and Massachusetts all have active state incentives. Sol Country checks your state's credits automatically in Find My Power.
Loan. Lease. PPA.
Which is right for you?
Three ways to go solar in 2026. Each has different upfront costs, long-term value, and flexibility. Sol Country breaks down the honest math on all three.
| Solar Loan | Cash Purchase | Lease (LightReach) | PPA | |
|---|---|---|---|---|
| Upfront cost | $0 down | $15,000–25,000 | $0 down | $0 down |
| Federal tax credit | No (expired 12/31/25) | No (expired 12/31/25) | Provider claims — passed to you | Provider claims — passed to you |
| Monthly payment | $80–150/mo typical | None | ~$89–130/mo (LightReach) | Per kWh produced |
| Long-term savings | Highest | Highest | Moderate | Moderate |
| System ownership | You own it | You own it | Provider owns | Provider owns |
| Flexibility | Transfer with house | Transfer with house | Transfer or buyout | Transfer or buyout |
| Best for | Homeowners building equity | Best long-term ROI buyers | Want $0 down + no risk | Pay per production model |
The best solar financing
options in 2026.
Does solar still make sense
without the tax credit?
Short answer: yes — especially in high-rate states. Use this calculator to see your break-even point with and without the credit.
Difference: 3.9 more years to payback without the credit. A $0-down lease avoids this entirely — no upfront cost, provider takes the credit.
Loan vs lease vs PPA.
And what the credit change means.
Honest answers to the questions homeowners are asking Sol Country most in 2026.
Get your financing
options in 30 seconds.
Find My Power checks your address, your utility rate, and your state's available incentives — then shows you which financing option makes the most sense for your situation.