Solar Resources · Financing & Comparisons · Updated for 2026
How to Pay for Solar: Financing Options
Cash, a solar loan, or a lease or PPA. The MySolarFY hub for how you pay for solar, what each path costs, and who ends up owning the system.
The short answer
You can pay for solar with cash, a loan, or a lease or PPA. Cash saves the most and owns the system; a loan owns it with little down but watch the dealer fee; a lease or PPA can mean no up-front cost but smaller savings. The right pick shifted in 2026: the federal 25D tax credit ended December 31, 2025, so buying no longer carries a federal-credit edge.
What this financing hub covers
This is the MySolarFY hub for how you pay for solar. Financing decides your up-front cost, who owns the panels, who keeps the incentives, and how much you save over 20 or 25 years. We lay out the three ways to pay side by side, then link to the deeper guides that run the numbers, so you can weigh the cost against the savings before you talk to anyone. The honest headline for 2026: the math changed. The federal residential solar tax credit (Section 25D) ended December 31, 2025, so a cash or loan buyer no longer gets that 30 percent credit, and the buy-versus-lease decision now turns on ownership, your electric rate, and any state or utility incentives.
Sources: the IRS Residential Clean Energy Credit (Section 25D), which ended December 31, 2025 (irs.gov), and loan dealer-fee ranges from the CFPB Issue Spotlight: Solar Financing, as of August 2024. MySolarFY is a free matching service, not a lender, and does not provide tax advice.
Start with the financing cornerstone
The core comparison first, with the ownership, incentive, and lifetime-cost math laid out. We are adding more financing guides to this hub, and new ones link in here as they go live.
Start here
Solar loan vs lease vs cash: how to pay for solar in 2026 →
The three ways to pay compared on ownership, incentives, and lifetime cost, plus the hidden dealer fee and the 2026 tax-credit change that shift the buy-versus-lease math. A worked cash-vs-loan-vs-lease example with every assumption shown.
Compare your options
Solar lease vs PPA: what’s the difference in 2026? →
The one real difference between a lease and a PPA, the escalator clause to flag in both, who keeps the tax incentives, and how third-party ownership compares to owning your system this year.
How financing works
How do solar loans work? A 2026 homeowner’s guide →
The two kinds of solar loan, what APR and term do to your cost, the hidden dealer fee that makes a “$0-down” loan cost more than cash, and the 2026 tax-credit change that broke a common loan structure. A worked same-system example with every assumption shown.
Related financial reading
Financing is only half the decision; the other half is what solar costs and whether it pays back for your home. These sourced cost and savings guides run the numbers that sit under any financing choice.
How much solar panels cost in 2026
The real 2026 price per watt and total system cost, with price tables, a worked payback example, and honest 2026 tax-credit facts.
Are solar panels worth it? The financial case
Payback period, return on investment, and how to weigh the up-front cost against decades of savings before you finance anything.
How long is the solar payback period?
How long until solar pays for itself in 2026: the simple formula, a rate-by-sun payback matrix, and why the range runs from about 6 to 16 years.
How much can solar save over 20 years?
A year-by-year cumulative-savings table for an owned 8 kW system: roughly $8,000 to $55,000 net over 20 years, with every assumption shown.
What the federal tax credit change means in 2026
The federal solar tax credit (Section 25D) ended December 31, 2025. What that means for a 2026 buyer, and what still cuts your cost now.
The three ways to pay for solar, side by side
How you pay changes the up-front cost, who owns the system, and how much you keep. This is a general comparison, not a quote; the right fit depends on your budget, your tax situation, and how long you plan to stay in the home.
| Way to pay | Up-front cost | Who owns the system | Long-run savings |
|---|---|---|---|
| Cash | Highest | You | Highest; no interest, you keep every dollar saved |
| Solar loan | Low to none, then monthly payments | You | High; you keep the savings, minus loan interest and any dealer fee |
| Lease | Little or none, where available | A third party | Smaller; a fixed monthly payment that can include an annual escalator |
| PPA | Little or none, where available | A third party | Smaller; you pay a per-kWh rate that can rise each year |
General comparison for 2026, not a quote or an offer. A lease or PPA can include an annual price escalator and may save less over time than owning with cash or a loan. Many solar-specific loans carry a hidden dealer fee, often 10 to 30 percent of the cash price, baked into the loan principal (CFPB, as of August 2024), so the financed price can run well above the cash price. The federal residential tax credit (Section 25D) ended December 31, 2025, so it does not offset any of these paths in 2026. See the full breakdown in our solar loan vs lease vs cash guide.
A quick illustration, and why your state still decides it
Take a $31,000 cash system. Put it on a solar loan carrying a 22 percent dealer fee (the midpoint of the CFPB’s 10 to 30 percent range) and the financed amount climbs to roughly $37,800 before any interest, so the loan buyer pays about $6,800 more than the cash buyer for the same panels. That gap is the single biggest reason to compare the cash price with the financed price in writing. This is our own illustrative figure, not a quote. (Source: CFPB Issue Spotlight: Solar Financing, as of August 2024.)
The savings side, though, is local. Your electric rate and your utility’s net-metering rule decide how fast any of these paths pays back, which is why the same system pays back differently in a high-rate state like Connecticut than in New Jersey or Maryland, where SRECs add their own credit. Check your state before you weigh a financing offer.
What to check before you sign, by financing type
Each path has one thing worth pinning down in writing before you commit. This is a checklist, not a quote.
| Financing type | The one thing to verify in writing |
|---|---|
| Cash | The itemized system price, so you can compare quotes on the same equipment and scope. |
| Solar loan | The cash price versus the financed price. A large gap points to a hidden dealer fee baked into the principal (CFPB, as of August 2024). |
| Lease | The annual escalator percentage, and how the agreement transfers if you sell the home. |
| PPA | The per-kWh rate and its yearly increase, so you can model the payment in year 10 and year 20, not just year one. |
General guidance for 2026, not a quote or an offer. Terms, fees, and escalators vary by lender, installer, state, and utility. The federal residential tax credit (Section 25D) ended December 31, 2025.
How to compare solar offers and installers
Financing decides how you pay; comparison decides who you pay and whether the price is fair. Once you know the ways to pay, these neutral guides show how to line up bids, read the paperwork, and weigh a national brand against a local crew before you sign.
Why compare solar quotes online
Two installers can price the same system thousands of dollars apart, so comparing quotes online first is the cheapest way to avoid overpaying. See what a fair price-per-watt spread looks like.
National vs local solar companies
How big national installers and local solar companies tend to differ on price, warranty support, and who answers when you call, so you can weigh the trade-offs for your home.
How to compare solar installers
The questions to ask, the licenses and warranties to check, and how to line up bids on the same equipment and scope so you are comparing like for like, not just monthly payments.
How to read a solar quote
What every line on a solar proposal means, from system size and price per watt to the financing terms, so you can spot the cash price, any dealer fee, and any escalator before you sign.
More MySolarFY guides
This financing hub sits under our main resource library. Head back up for the full set of solar guides, or jump to the sibling hubs that pair with the money side.
Go up to all MySolarFY solar resources. New to solar? Our sibling hub Solar Basics explains how panels work, and the Solar Cost and Savings Guide runs what a system costs and how it pays back. To see how we source these numbers, read our data and methodology.
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Solar incentives, net-metering credits, installer availability, and electric rates change by utility and location. Enter your ZIP and we’ll match you with licensed installers who serve your area.
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Solar financing, common questions
What is the best way to pay for solar in 2026?
There is no single best way; it depends on your budget and how long you plan to stay. Paying cash costs the most up front and saves the most over time because you own the system and pay no interest. A solar loan lets you own it with little or nothing down, so you keep the state and utility incentives, but watch for a hidden dealer fee. A lease or PPA can mean no up-front cost where available, but the savings are smaller because a third party owns the system. The decision shifted in 2026 because the federal residential tax credit (Section 25D) ended December 31, 2025, so buying no longer carries a federal-credit edge. (Source: IRS Residential Clean Energy Credit, irs.gov.)
Is it better to get a solar loan or a solar lease?
A loan is usually better if you want to own the system, since you keep the incentives and build equity, while a lease hands ownership and those benefits to a third party. The loan’s risk is cost: many solar loans carry a hidden dealer fee, often 10 to 30 percent of the cash price, baked into the principal (CFPB, as of August 2024), so the financed price can run well above the cash price. A lease avoids that fee and the maintenance, but you never own the system and the payment often escalates each year. Compare the total cost of each, not the monthly payment alone.
Is the 30% federal solar tax credit gone for 2026 buyers?
Yes. The federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, so a homeowner who installs solar in 2026 cannot claim that 30 percent federal credit, whether they pay cash or finance. On a lease or PPA the third-party owner, not you, would claim any incentive tied to ownership. Some state and local incentives, net-metering credits, and SRECs may still apply depending on where you live. MySolarFY does not provide tax advice; confirm your situation with a tax professional. (Source: IRS Residential Clean Energy Credit, irs.gov.)
Can I really get solar with no money down?
Sometimes. Some homeowners qualify for a $0-up-front loan or a lease or PPA where those options are available, so there is no out-of-pocket cost at installation. That does not mean solar is free: a loan is repaid with interest and can carry a dealer fee, and a lease or PPA is a monthly payment that can rise each year through an escalator, with total payments that may exceed the cost of buying with cash. Whether you qualify depends on your state, your utility, and your credit. (Source: CFPB Issue Spotlight: Solar Financing, as of August 2024.)
What is a solar dealer fee?
A dealer fee is a hidden charge that many solar-specific lenders add to the loan principal to buy down a low advertised interest rate. The Consumer Financial Protection Bureau reports these fees, also called program, platform, or finance fees, typically run 10 to 30 percent of the system’s cash price and can exceed 50 percent, and that they are often left out of the stated APR (CFPB Issue Spotlight: Solar Financing, as of August 2024). Because the fee sits in the principal rather than the rate, a loan can look cheap on APR while the financed price runs far above the cash price. Always ask for the cash price in writing and compare it to the financed price.
Financing figures on this page are illustrative national references with their sources noted, not a quote or a guarantee for your home. A lease or PPA can carry an annual price escalator and total payments may exceed the cost of buying the system with cash or a loan. Many solar loans carry a dealer fee baked into the principal, so compare the cash price to the financed price. The federal residential tax credit (Section 25D) ended December 31, 2025. MySolarFY is a free matching service, not an installer or a lender, and does not provide tax advice; confirm any tax question with a qualified professional. Written and reviewed by the SolarFY Editor. Last reviewed July 2026.