Solar Financing Options in 2026: PPAs, Prepaid Leases, Loans and New Ways to Go Solar

When the former 30% federal homeowner solar tax credit ended after 2025, many homeowners wondered whether solar would still make financial sense in 2026.

The first half of 2026 is providing a clearer picture.

Solar did not disappear after the homeowner credit ended. Instead, the way homeowners pay for solar began changing quickly.

Cash purchases and solar loans remain available, while leases, power purchase agreements and newer prepaid third-party ownership structures are receiving more attention.

For homeowners, that means the financing agreement can now have almost as much effect on the final economics as the solar equipment itself.

The 30% Homeowner Solar Tax Credit Ended After 2025

The former Residential Clean Energy Credit under Section 25D allowed qualifying homeowners to claim a federal credit equal to 30% of qualifying residential clean-energy expenditures.

That changed under federal law.

The IRS confirms that homeowners cannot claim the Section 25D credit for qualifying expenditures made after December 31, 2025.

That means a homeowner purchasing and installing a qualifying system in 2026 should not subtract the former 30% homeowner credit when calculating the project's net cost.

NationPro USA explains the change in its California solar guide after the federal tax credit .

How Much Did Losing the 30% Credit Change the Math?

The effect depends on the cost of the individual project.

EnergySage previously illustrated the former credit using an approximately $30,000 residential solar project.

Thirty percent of $30,000 is $9,000.

That is where the frequently cited "$9,000 more expensive" example comes from.

It should not be treated as a fixed $9,000 increase for every homeowner. A smaller project would have had a smaller tax credit, while a larger qualifying project could have had a larger one.

Solar-Only Pricing Held Steady Through the First Half of 2026

The loss of the homeowner tax credit did not produce an immediate jump in quoted solar-only installation prices on the EnergySage Marketplace.

EnergySage reported that solar-only pricing averaged approximately $2.62 per watt before incentives during the first half of 2026.

That was unchanged from the second half of 2025.

Compared with the first half of 2025, EnergySage reported solar-only pricing was approximately 1% lower.

This does not mean homeowners face the same net cost they did when the 30% homeowner credit was available.

It means installer quote pricing itself remained relatively stable while financing structures began changing.

Third-Party Solar Ownership Expanded Quickly in 2026

One of the clearest shifts in the first half of 2026 was the growth of third-party ownership, commonly called TPO.

Under a TPO arrangement, a solar financing company or provider owns the solar system installed at the property.

The homeowner receives the benefit of the electricity through a lease or Power Purchase Agreement rather than purchasing the system directly at installation.

EnergySage reported that the share of installers quoting TPO options on its Marketplace rose from approximately 14% at the beginning of the first half of 2026 to roughly 41% by the end of the period.

Some of that increase reflects the fact that EnergySage only added TPO options to its Marketplace in mid-2025, so the change should not be interpreted as a tripling of the entire U.S. TPO market.

It does show that more installers using that marketplace were presenting homeowners with third-party financing choices.

Why Can Third-Party Ownership Still Have Federal Tax Benefits?

The homeowner Section 25D credit and business clean-energy tax provisions are different parts of federal tax law.

When a qualifying third-party provider owns a solar facility, that business may be eligible for applicable commercial clean-electricity tax treatment, including Section 48E, if the project satisfies current federal requirements.

The homeowner does not personally claim that business credit.

Instead, a provider may account for available tax benefits when setting the economics of a lease or PPA.

Current federal rules also impose timing and qualification requirements on applicable solar facilities, so homeowners should not assume every third-party solar contract receives the same tax treatment.

What Is a Prepaid Solar Lease or Prepaid PPA?

A traditional solar lease or PPA usually involves recurring payments.

A prepaid version changes the payment structure.

Instead of making the normal monthly lease or PPA payments over many years, the homeowner pays the contracted amount upfront according to the agreement.

The third-party provider initially owns the system.

Depending on the contract, a future ownership option may become available after a defined period.

EnergySage says many current prepaid products provide a path to ownership around year six, but the exact timing, transfer price and ownership conditions are contract-specific.

NationPro USA covers the structure in more detail in its prepaid solar PPA guide .

What EnergySage Found About Prepaid Solar Pricing

EnergySage's first-half 2026 marketplace data compared financing products based on the average price per kilowatt-hour associated with quoted systems.

Cash Could Still Beat a Traditional Monthly PPA in Some Comparisons

The report does not say every TPO structure is cheaper than buying solar.

EnergySage reported that while a traditional PPA averaged 32% below a solar loan on a price-per-kWh basis, a cash purchase averaged approximately 33% below a traditional non-prepaid PPA.

That is a good example of why homeowners should compare the actual contract rather than choosing a financing label.

Cash, loans, traditional PPAs, leases and prepaid structures each distribute costs, ownership and responsibilities differently.

How the Main 2026 Solar Payment Options Compare

California Had the Largest PPA-to-Utility Price Gap in the EnergySage Data

High California electricity prices make financing structure especially relevant for homeowners in the state.

EnergySage reported that average PPA rates were below utility electricity rates in every qualifying state represented in its first-half 2026 comparison.

The widest difference appeared in California, where the average quoted PPA rate was approximately 59% below the utility electricity rate used in the EnergySage comparison.

That does not mean every California homeowner will lower their total electric bill by 59%.

An individual result depends on the utility, rate plan, system production, remaining grid purchases, contract terms, escalator, battery operation and household electricity use.

NationPro USA's California electricity rates guide provides more context on current utility pricing.

Why Price per kWh Is Useful When Comparing Solar Financing

Solar financing products can be difficult to compare when one proposal shows a cash price, another shows a monthly loan payment and another shows a PPA electricity rate.

Comparing the cost of electricity over the agreement can help put those offers into a more consistent format.

But price per kWh should not be the only consideration.

Homeowners should also review:

• who owns the system
• total upfront payment
• monthly payment where applicable
• interest rate and loan term
• dealer or financing fees
• PPA or lease escalator
• system maintenance responsibilities
• warranty coverage
• home-sale transfer requirements
• future purchase or ownership terms
• expected annual solar production
• remaining utility charges

Prepaid Solar Is Not Automatically the Right Option for Every Homeowner

Lower average marketplace pricing does not make one financing structure the correct choice for everyone.

A homeowner who wants immediate equipment ownership may prefer cash or a loan.

Someone who wants to preserve cash may prefer a traditional PPA or lease.

A homeowner interested in third-party economics with a potential later path to ownership may want to compare prepaid structures.

How long the homeowner expects to remain in the property can also change the decision.

NationPro USA's homeowner solar planning guide covers ownership, financing, warranties and system design questions to review before signing.

Battery Interest Reached a New High in the EnergySage Marketplace

Financing changes are happening at the same time that more solar shoppers are considering home battery storage.

EnergySage reported that self-reported homeowner interest in battery storage reached 76% during the first half of 2026, the highest level recorded in its marketplace data.

Actual battery attachment was lower at approximately 31%.

A battery can store available solar electricity for later use, which can be useful for households facing Time-of-Use pricing or lower compensation for solar electricity exported to the grid.

Correctly configured storage can also provide backup electricity during outages.

Learn more in NationPro USA's home battery storage and solar guide .

Solar Financing Should Be Compared With the Utility Alternative

Homeowners sometimes evaluate solar only by looking at the installation price.

But the alternative also has a cost.

A homeowner who does not install solar will normally continue purchasing electricity from the utility.

A useful comparison therefore looks at both sides:

• the full cost of the solar agreement
• expected solar production
• expected grid electricity purchases after solar
• current utility pricing
• reasonable future utility-rate scenarios
• financing or contract costs
• battery expenses where applicable
• expected length of homeownership

That gives a homeowner a more useful comparison than simply asking whether a solar system looks expensive today.

Questions to Ask Before Signing a Solar Financing Agreement

Before accepting any solar financing product, homeowners should ask:

1. Who owns the solar equipment on day one?
2. What is the total amount I will pay under the agreement?
3. Are there dealer fees, escalators, transfer fees or other charges?
4. Who receives federal, state or local incentives?
5. Who is responsible for monitoring and maintenance?
6. What happens if I sell the home?
7. Can I purchase the system later, and how is the purchase price calculated?
8. What happens at the end of the agreement?
9. Does the proposal assume future utility-rate increases?
10. How does this option compare with cash, a loan and other available structures?

NationPro USA Helps Homeowners Compare Solar Financing Options

The end of the homeowner federal tax credit did not reduce solar financing to one option.

In many cases, it did the opposite.

Homeowners now need to compare system ownership, financing cost, PPA rates, prepaid structures, utility pricing and battery storage more carefully.

NationPro USA can review a home's electricity usage, utility rate, roof, battery needs and available payment structures so the homeowner can compare multiple approaches using the same household energy profile.

The goal is not to assume that cash, a loan, PPA or prepaid agreement is automatically better.

The goal is to compare the actual numbers and contract terms for the home.

Solar Financing Options 2026 FAQs

Is the 30% federal homeowner solar tax credit available in 2026?

No. The IRS states that the Section 25D Residential Clean Energy Credit is not available for qualifying expenditures made after December 31, 2025.

What solar financing options are available in 2026?

Common options include a cash purchase, solar loan, traditional solar lease, traditional Power Purchase Agreement, prepaid solar lease and prepaid PPA. Availability varies by market, provider and property.

What is a prepaid solar PPA?

A prepaid PPA is a third-party-owned solar agreement where the contracted solar-energy obligation is paid upfront rather than through normal recurring PPA payments. The provider initially owns the system, and future ownership may be available according to the agreement.

What is a prepaid solar lease?

A prepaid solar lease uses third-party ownership but replaces normal recurring lease payments with an upfront prepayment. Ownership-transfer provisions depend on the individual contract.

Are prepaid PPAs 57% cheaper for every homeowner?

No. The 57% figure comes from EnergySage's first-half 2026 marketplace comparison of average price per kilowatt-hour for prepaid PPAs versus cash purchases. It is not a guaranteed project discount or household bill reduction.

Why can a third-party solar owner still receive federal tax treatment?

Qualifying businesses that own eligible clean-electricity facilities may be able to use separate business tax provisions such as Section 48E. The homeowner does not claim the provider's business credit, and project eligibility depends on current federal requirements.

Is a solar PPA always cheaper than buying solar?

No. EnergySage's first-half 2026 data found traditional PPAs cheaper than loans on an average price-per-kWh basis, while cash purchases were cheaper than traditional non-prepaid PPAs in the same marketplace comparison.

Why are prepaid PPAs receiving more attention in 2026?

The homeowner Section 25D credit ended after 2025, while qualifying third-party-owned projects may still have access to separate business tax provisions. That has increased interest in financing structures that use third-party ownership.

Does battery storage change solar financing?

It can. Adding storage changes project price and system design, and homeowners may finance solar and storage together or separately depending on the provider. Battery economics also depend on utility rates, usage patterns and available programs.

How should I choose between cash, a loan, lease or PPA?

Compare the total cost, ownership structure, financing rate, contract length, maintenance responsibilities, transfer rules, expected electricity production and remaining utility costs. The right structure depends on the homeowner's financial goals and property.