Solar Financing: Cash, Loan, or Lease?
Short answer: how you pay for solar changes who owns the system, what incentives apply, and how the math works out. Here’s what changed for 2026 and how the three main paths compare.
Quick answer: Cash and loan purchases mean you own the system outright. Leases and power purchase agreements (PPAs) mean a third party owns it and you pay for the power or the lease. Federal tax-credit rules for owned residential systems changed for 2026 — we’ll walk through current eligibility for your specific situation during your evaluation.
This is one area where the rules genuinely changed heading into 2026, so it’s worth being precise rather than repeating older, outdated information you may have seen elsewhere.
The three main paths
| Option | Who owns the system | Monthly payment | Maintenance responsibility |
|---|---|---|---|
| Cash purchase | You | None after purchase | You, though usually covered by warranty for years |
| Solar loan | You | Loan payment | You, though usually covered by warranty for years |
| Lease or PPA | Third-party financier | Fixed lease payment or per-kWh rate | Financier/installer typically responsible |
What changed for 2026
The federal residential solar tax credit that many homeowners are familiar with, worth 30% of system cost for owned systems, ended for installations after December 31, 2025, under recent federal legislation. That means homeowners purchasing a system with cash or a loan in 2026 should not expect that specific 30% federal credit to apply the way it did in prior years. Third-party ownership structures like leases and PPAs may still connect to different federal incentives available to the financing company, which can sometimes affect the price or terms offered to you, but the details depend on the specific program and provider.
What this means practically
The honest answer is that financing decisions now depend more heavily on your specific financial situation, local utility rates, and the terms a particular lender or lease provider is offering, rather than a blanket federal discount that applied uniformly in past years. We review current, accurate incentive information — state, utility, and any applicable federal programs — as part of every free evaluation, rather than relying on outdated figures.
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Frequently asked questions
Is the 30% federal solar tax credit still available in 2026?
For homeowner-owned residential systems purchased with cash or a loan, the federal residential solar tax credit (Section 25D) ended for installations after December 31, 2025. We review current, accurate incentive information specific to your situation during your evaluation.
What’s the difference between a solar loan and a lease?
With a loan, you own the system and are responsible for a loan payment; with a lease or PPA, a third party owns the system and you pay a fixed lease amount or a rate per kWh produced, without owning the equipment.
Do leases or PPAs still have access to any tax incentives?
Third-party ownership structures can sometimes connect to different federal programs available to the financing company, which may affect pricing, but this varies by provider and isn’t the same as the homeowner-owned tax credit that changed for 2026.
Which financing option is best for my home?
It depends on your financial situation, how long you plan to stay in the home, and current lender or lease terms. We review your specific numbers, including up-to-date incentive information, during your free evaluation rather than giving a one-size-fits-all answer.
Do I need to own my system to benefit from net metering?
No, net metering applies to the system generating power at your home regardless of the ownership structure, though the specific billing arrangement can differ under a lease or PPA versus outright ownership.
Related guides
- How does net metering work in Florida?
- Do solar panels increase home value?
- Home solar, battery and EV charging in Florida
- Solar systems
- Battery storage
- Florida solar by city
Figures on this page are typical industry averages for planning purposes and assume Florida’s 14.5¢/kWh average residential rate and 5.5 peak-sun hours per day. Your actual numbers will differ based on your utility, roof, and system — request a free evaluation for figures specific to your home.