Compare Financing

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 48E phase-out completes December 31, 2027 — projects must be placed in service by then (515 days left).

See the full deadline tracker

Data verified June 2026 — see our tax credit accuracy standards.

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 provided a 30% federal credit for qualifying clean energy projects that began construction before July 4, 2026 (IRS Notice 2025-42). That construction-start deadline has now passed, so new lease/PPA/ESA projects no longer receive 48E passthrough — only grandfathered projects (construction begun by that date) still benefit via lower monthly payments or $0 down. The trade-off: you don't own the system.

The 2026 financing inversion

As of January 1, 2026, the federal residential credit (25D) has ended — cash and loan buyers receive 0% federal credit. Lease/PPA providers COULD retain up to 30% via Section 48E and pass part through — but the construction-start deadline expired July 4, 2026 (IRS Notice 2025-42), so only grandfathered projects (construction begun by that date) still benefit. New lease/PPA projects no longer receive 48E passthrough.Read the full inversion analysis →

New

25D vs 48E Quick Comparison

See the post-25D reality side-by-side. Numbers update live as you type — no submit button.

System Cost ($)

Monthly Electricity Bill ($)

Used to contextualize your annual energy spend.

Loan Term (years)

Loan APR (%)

PPA Escalator (%/year)

Cash/Loan uses the term & APR. Lease/PPA uses the escalator. Both paths update together.

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 · 48E deadline passed (no credit for new projects)

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: ⚠️ None (deadline passed)

Bottom line: In this scenario, lease/PPA runs about $— less in the first year than cash/loan — but you won't own the system. Note: the Section 48E construction-start deadline expired July 4, 2026 (IRS Notice 2025-42), so new lease/PPA projects no longer receive 48E passthrough; the figures above exclude 48E. Cash/loan builds equity but costs full price since 25D expired.

System Details

System Size (kW) *

ZIP Code *

Monthly Usage (kWh) optional

Leave blank to estimate from system size

System Overview

Location: —System Cost: —Annual Production: —Utility Rate: —State Incentives: —

25-Year Cost Comparison

Cash Purchase

Pay upfront — maximum long-term savings

Upfront Cost: —
Federal ITC: $0
State Incentives: —
Net Cost: —
Effective $/W: —
25-Yr Value: —

Solar Loan

7.0% APR · 20 yr

Down Payment: —
Monthly Payment: —
Total Interest: —
Total Loan Cost: —
Federal ITC: $0
25-Yr Value: —

Solar Lease

$0 down · you don't own the system

Upfront Cost: $0
Initial Monthly: —
Escalator: —
25-Yr Total Cost: —
§48E ITC: —
25-Yr Value: —

PPA

Pay 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

Cash Purchase Solar Loan Lease PPA Utility Bill (no solar)

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Enter your system size and ZIP code to compare cash, loan, lease, and PPA financing side-by-side.

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 began before July 4, 2026 (a Saturday; under IRC 7503, weekend federal tax deadlines roll to the next business day — now passed) and FEOC-compliant equipment. State incentives based on DSIRE data as of May 2026.

2026 Market Shift

2026 financing inversion: why lease/PPA now undercuts cash

Source: Solar Brief financing analysis (2026) · SEIA Q1 2026 US Solar Market Insight. The numbers below are why the calculator above keeps showing lease/PPA ahead of cash in 2026.

Lease / PPA (California)

$0.18–$0.22/kWh

Effective rate after 48E passthrough

Cash purchase

~14 yr payback

No 25D credit — full system cost on the homeowner

The mechanism: 48E tax credit passthrough to lease/PPA customers

Section 25D (the residential credit cash buyers used) expired December 31, 2025. Section 48E survived under the OBBBA — but only Third-Party Ownership providers (leases and PPAs) could monetize it, and only for projects that began construction before July 4, 2026 (IRS Notice 2025-42). That construction-start deadline has now passed, so new lease/PPA projects no longer capture a 48E credit to pass through; only grandfathered projects still reflect the lower effective rate. Cash buyers, with no 25D to offset the upfront cost, carry the full price. Review the July 4, 2026 construction-start deadline →

Read both sides. Lease/PPA wins on effective rate in 2026, but homeowner sentiment (Reddit r/solarenergy community thread (2026)) repeatedly flags lease/PPA contract complexity and confusion — escalators, buyout terms, and home-sale transfer rules can erode the headline advantage. Decode any contract before signing. See the full 2026 market context →