When the federal solar tax credit expired at the end of 2025, people assumed the opportunity for major solar savings was gone. The truth is far more encouraging: homeowners can still save 30% on solar in 2026, even without the previous incentive. Thanks to a new financial option, third-party solar financing, the same level of savings is still available and more accessible.

We’ll break down exactly how it works, who qualifies, and why this alternative may actually be simpler than relying on the old tax credit.

Did the Residential Solar Tax Credit Really End?

Yes, the 30% federal Residential Clean Energy Credit officially ended on December 31, 2025, but homeowners still have access to solar savings without the tax credit.

Understandably, many believed this meant residential solar would no longer be affordable, but that’s not the case. Even without the incentive, homeowners can still save 30% on solar energy costs due to a new prepaid solar lease structure that delivers savings upfront.

And with utility rates continuing to rise year after year, the financial benefits of going solar remain as relevant as ever.

You Can Still Save 30% on Solar

A new prepaid solar lease program offers homeowners the same 30% savings previously available through the federal incentive. Instead of waiting for tax season, the savings apply immediately.

Here’s why homeowners can still save:

• Homeowners pay 70% of the system cost.
• A financing partner pays the remaining 30%.
• The discount is applied upfront, instantly reducing the overall cost.

This structure makes third-party solar financing a practical solution for homeowners who didn’t qualify for the tax credit

How the Prepaid Solar Lease Program Works (Simple Breakdown)

This structure makes it extremely straightforward for homeowners to still save 30% on solar in 2026. Here’s the breakdown:

• You pay 70% of the system cost upfront.
• The program provider covers the remaining 30%.
• They own the system for six years during the prepaid lease period.
• You receive full energy savings from day one.
• After six years, the system transfers to you for free.
• No interest. No loan. No buyout.

This program gives homeowners the same level of savings as the old tax credit, but without requiring tax liability or complicated eligibility rules.

Tax Credit vs. Prepaid Lease Program

Here’s a clear comparison showing why homeowners can still save 30% on solar in 2026:

Feature	Federal 30% Tax Credit	Prepaid Lease 30% Savings
Upfront Cost	Full system cost	70% of system cost
When You Save	During tax season	Immediately
Who Owns the System	Homeowner	Provider (first 6 years)
Ownership Transfer	N/A	Free after 6 years
Qualifications	Based on tax liability	Broad eligibility
Ideal For	Tax filers	Homeowners who didn’t qualify or missed the deadline

How Long-Term Savings Compare

Beyond the immediate 30% discount, solar continues to deliver strong long-term value.

• Solar still offsets rising electricity rates.
• A 30% upfront reduction shortens the payback period.
• After six years, all savings belong entirely to the homeowner.
• No interest from solar loan.
• Solar stabilizes electricity costs as rates continue climbing.

Steps to Get Started

Here’s the simple process for homeowners who want to take advantage of this 30% savings option:

1. Request a personalized savings estimate.
2. Review your 70/30 cost breakdown.
3. Approve your prepaid lease structure.
4. Schedule installation.
5. Enjoy lower, predictable energy bills and full system ownership after six years.

This simple process makes it easier than ever for homeowners to secure significant solar savings, regardless of the expiration of the tax credit.

FAQs About the Prepaid Lease Solar Program

What is a prepaid solar lease?

It’s a program where you pay upfront for the benefit of your solar system while the provider temporarily owns it for six years. After that, ownership transfers to you for free.

Do I still have the option to use solar power during the lease?

Yes, you receive full energy savings from the very first day.

Is there a buyout cost after six years?

No. Ownership transfers automatically and at no additional cost.

Do I qualify if I didn’t qualify for the old 30% tax credit?

Yes. The prepaid lease structure doesn’t depend on tax liability.

Does the prepaid lease affect my property taxes or home sale?

Terms are typically straightforward, and systems can generally transfer to a new homeowner.

Can I combine this with other incentives?

Depending on your utility or region, additional incentives may still apply.

What if utility rates continue rising?

Your solar savings increase as utility rates rise, especially once you fully own the system.

Solar Still Makes Sense in 2026

The end of the federal tax credit didn’t end solar savings. This third-party solar financing option provides homeowners with a way to save 30% in 2026, avoid uncertainty, and transition toward ownership without waiting for tax incentives. 

A simple, flexible approach to today’s energy needs.