Solar financing in 2026 looks nothing like it did a year ago. The federal 30% tax credit that made buying solar panels an easy financial decision is gone for homeowners who purchase systems outright. That changes the math significantly — and for many Georgia homeowners, leasing now makes more sense than it ever has before.
This guide breaks down exactly what changed, what each option costs, and how to decide which path is right for your home.
What Changed in 2026
The economics of solar leases shifted in 2026. When the federal solar tax credit expired for purchased systems after December 31, 2025, solar leases and power purchase agreements became the only residential solar installations that still qualify for the credit — even though it goes to the solar company, not directly to you. Competitive providers should pass those savings along as lower monthly rates, which puts leases on a more level playing field with ownership than they’ve been in the past.
In plain terms: if you buy solar in 2026 with cash or a loan, you get no federal tax benefit. If you lease, the solar company claims the credit and (ideally) passes the savings to you through lower payments.
The Three Options in 2026
Option 1: Buy with Cash
You own the system outright. No monthly payment, maximum long-term savings, adds value to your home. The catch: no federal tax credit, so you’re paying full price — typically $28,000–$38,000 for an average Georgia home.
Best for: Homeowners with capital who plan to stay in the home 15+ years and want maximum lifetime ROI.
Option 2: Buy with a Solar Loan
You own the system but finance it over 10–25 years. Monthly payment replaces your electric bill. Still no federal tax credit in 2026.
Solar loans require a credit check and may involve origination fees that slightly reduce overall net savings. Components like string inverters may also need replacement after 12–15 years, costing the owner between $1,500 and $3,000.
Best for: Homeowners who want ownership benefits without large upfront cash outlay and have good credit.
Option 3: Lease or PPA
A solar company owns the panels, installs them on your roof, and charges you a fixed monthly rate (lease) or per-kilowatt-hour rate (PPA). The leasing company claims the tax credit and the homeowner benefits from lower payments.
Solar companies are offering more lease options now, including prepaid leases, which avoid lease financing costs while still taking advantage of the remaining federal tax credit — assuming companies pass the savings on to the customer.
Best for: Homeowners who want $0 down, immediate savings, and no maintenance responsibility.
Side-by-Side Comparison
| Cash Purchase | Solar Loan | Lease / PPA | |
|---|---|---|---|
| Upfront cost | $28K–$38K | $0 | $0 |
| Federal tax credit | ❌ | ❌ | ✅ (goes to company) |
| You own the system | ✅ | ✅ | ❌ |
| Adds home value | ✅ | ✅ | ⚠️ Can complicate sale |
| Maintenance responsibility | Yours | Yours | Company’s |
| Long-term savings | Highest | High | Lower |
| Monthly payment | None | Yes | Yes |
| Best for | Capital-rich, long-term | Good credit, no cash | No cash, want simplicity |
The Lease Escalator Problem
This is the most important thing to understand before signing any lease: many contracts include annual payment increases.
Many leases include payment increases of 1–3% per year, which can eat into your savings over time. Push for the lowest escalator possible — ideally at or below the long-term electricity inflation rate of 2.8% per year.
A 3% annual escalator on a $150/month lease means you’ll be paying $242/month by year 20. That can wipe out your savings entirely if electricity rates don’t rise at the same pace. Always ask for a zero-escalator or flat-rate lease if possible.
What About Selling Your Home?
A leased solar panel system can complicate selling your home because the buyer may need to assume your lease, or you’ll need to buy out the contract early.
Owned systems are much cleaner — research from the Lawrence Berkeley National Laboratory consistently shows that solar-owned homes sell for a premium, often adding about $4,000 per kilowatt of installed solar to the home’s value. For a 10 kW system that’s roughly $40,000 in added home value.
Which Makes More Sense for Georgia Homeowners?
Georgia’s specific situation matters here. The state has no statewide net metering, no state solar tax credit, and Georgia Power’s buyback rate is well below retail. That means:
- Battery storage is increasingly valuable regardless of financing method — with Georgia Power’s low export rate, a home battery like the EcoFlow PowerOcean or Inergy Apex essentially doubles the value of every kWh you generate
- Long payback periods (13–18 years for purchases) make leasing more attractive for homeowners who may move
- EMC customers (Cobb EMC, Jackson EMC, etc.) may have access to local rebates that improve the math for buying
Our take: For most Georgia homeowners in 2026, leasing makes sense if you want immediate savings with no upfront cost. Buying still wins if you have capital, plan to stay long-term, and are in an EMC territory with rebates. Get quotes for both options before deciding.
Questions to Ask Before Signing
Whether you lease or buy, ask every installer these questions:
- What is the annual escalator on this lease?
- What happens to my contract if I sell my home?
- What warranties cover the equipment and workmanship?
- How is system performance guaranteed?
- What are the buyout terms if I want to purchase the system later?
Get Free Quotes for Both Options
The only way to know which makes more financial sense for your specific home is to compare actual quotes. Get estimates for both purchase and lease options from multiple installers.