In 2026, how you pay for solar changes whether you get the federal credit at all. Buy with cash or a loan and you own the system and keep the most lifetime savings — but you get no federal credit. Choose a $0-down lease or PPA and you pay nothing upfront; the federal credit belongs to the provider that owns the system, not to you.
The four ways to pay — compared
| Option | Upfront | Federal credit (2026) | Best for |
|---|---|---|---|
| Cash | Full cost | None | Max lifetime savings if you have the cash |
| Loan | $0–low | None (you own it) | Owning with little down, paying over time |
| Lease | $0 | 48E applies to the owner, not to you | No upfront cost, predictable payment |
| PPA | $0 | 48E applies to the owner, not to you | Paying only for the power produced |
So which should you choose?
If maximizing long-term savings matters most and you can cover the cost, buying still wins over the system's life — just without the federal credit now. If keeping cash in your pocket and a low, predictable payment matter more, a $0-down lease or PPA is the only structure in which the federal credit still applies at all in 2026 — and it applies to the system owner, not to you.
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See My Savings →Frequently asked questions
Is it better to lease or buy solar in 2026?
Buying with cash usually gives the most lifetime savings if you can afford the upfront cost, but owned systems get no federal credit in 2026. A $0-down lease or PPA costs nothing upfront and leaves the federal credit with the system owner rather than with you, which is what allows a $0-upfront structure. The right choice depends on your goals and tax situation.
Do I get the tax credit if I lease solar?
Not directly — but you benefit from it. With a lease or PPA the company that owns the system claims the commercial credit (48E), which is what makes a $0-upfront structure possible. If you buy the system yourself in 2026, there's no federal credit to claim.
Who maintains a leased solar system?
With a lease or PPA, the provider that owns the system is typically responsible for maintenance and repairs for the term — one of the trade-offs people weigh against the higher lifetime savings of owning.
Can I buy out a lease or PPA later?
Many lease and PPA agreements include buyout options at set points. Terms vary by provider, so it's worth confirming the buyout schedule before signing if eventual ownership matters to you.
This page is general information, not tax or legal advice. Federal and state solar incentives change and depend on your situation — confirm details with a licensed tax professional before deciding. Last reviewed: June 2026.