Solar Financing Comparison
Compare the true cost of cash purchase, solar loan, lease, and PPA over 25 years — including Section 48E ITC eligibility for third-party-owned systems.
Urgent tax credit deadlines
- Section 30D EV credit (up to $7,500) — expires June 30, 2026 (12 days left).
- Section 48E solar ITC safe harbor — construction must start by July 4, 2026 (16 days left).
Cash / Loan — Post-25D Reality
Section 25D (the residential solar ITC) expired December 31, 2025 under the One Big Beautiful Bill Act (OBBBA). Cash and loan buyers in 2026 receive $0 in federal tax credits and pay the full system price. State and local incentives may still apply.
Lease / PPA — Section 48E Passthrough
Section 48E provides a 30% federal credit for qualifying clean energy projects that begin construction before July 4, 2026. Financing companies (leases / PPAs / ESAs) claim it and pass the savings to you via lower monthly payments or $0 down. The trade-off: you don't own the system.
25D vs 48E Quick Comparison
See the post-25D reality side-by-side. Numbers update live as you type — no submit button.
Used to contextualize your annual energy spend.
Cash/Loan uses the term & APR. Lease/PPA uses the escalator. Both paths update together.
Local incentives may further reduce costs.
Cash / Loan (Post-25D)
You own the system · no federal credit
- System Cost
- —
- Federal Tax Credit
- $0 (25D expired)
- Down Payment
- $0
- Monthly Payment
- —
- Year 1 Total
- —
- 20-Year Total Cost
- —
- 20-Yr NPV Cost
- —
- Ownership
- ✅ You own it
- Maintenance
- Your responsibility
- Federal Credit Benefit
- ❌ None
Lease / PPA (48E Passthrough)
Third-party owned · 30% credit passed through
- System Cost
- —
- Federal Tax Credit
- —
- Down Payment
- $0
- Monthly Payment
- —
- Year 1 Total
- —
- 20-Year Total Cost
- —
- 20-Yr NPV Cost
- —
- Ownership
- ❌ Third-party owned
- Maintenance
- ✅ Covered by provider
- Federal Credit Benefit
- ✅ 30% passed through
Bottom line: In this scenario, choosing lease/PPA saves you approximately $— in the first year thanks to the Section 48E credit passthrough — but you won't own the system. Cash/loan builds equity but costs full price since 25D expired.
System Details
Leave blank to estimate from system size
System Overview
25-Year Cost Comparison
Cash Purchase
Best ValuePay upfront — maximum long-term savings
- Upfront Cost
- —
- Federal ITC
- $0
- State Incentives
- —
- Net Cost
- —
- Effective $/W
- —
- 25-Yr Value
- —
Solar Loan
Best Value7.0% APR · 20 yr
- Down Payment
- —
- Monthly Payment
- —
- Total Interest
- —
- Total Loan Cost
- —
- Federal ITC
- $0
- 25-Yr Value
- —
Solar Lease
Best Value$0 down · you don't own the system
- Upfront Cost
- $0
- Initial Monthly
- —
- Escalator
- —
- 25-Yr Total Cost
- —
- §48E ITC
- —
- 25-Yr Value
- —
PPA
Best ValuePay per kWh · you don't own the system
- Upfront Cost
- $0
- Initial Monthly
- —
- PPA Rate
- —
- 25-Yr Total Cost
- —
- §48E ITC
- —
- 25-Yr Value
- —
Cumulative Cost Over 25 Years
| Year | Cash | Loan | Lease | PPA | No Solar |
|---|
Cash Purchase & Solar Loan
The residential solar tax credit (Section 25D) expired on December 31, 2025. Homeowners who purchase their systems in 2026 receive $0 in federal tax credits.
Lease & PPA (Third-Party Owned)
Third-party-owned systems may qualify for the Section 48E investment tax credit. The credit goes to the system owner (lessor/PPA provider), not the homeowner, but is typically reflected in lower payments.
State Incentives Applied
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Estimates are based on national averages and state-level data. Actual costs vary by installer, equipment, and local conditions. Section 48E ITC eligibility for third-party systems assumes construction begins before July 4, 2026 and FEOC-compliant equipment. State incentives based on DSIRE data as of May 2026.