Tax credits for solar panels are available, but the catch is you can't own them

"With these arrangements sometimes called subscriptions or power purchase agreements (PPAs), a third party owns the panels and leases them back to the homeowner. But last summer, President Trump signed legislation that ended federal tax incentives that had cut at least 30% off the price of purchased panels. Similar incentives for leased panels remain."

"I talk to dozens of installers every quarter that range from small, mom-and-pop, local installers to the large national players. In the past many said they wouldn't offer solar with third-party ownership. But since Trump signed the budget law last year, I've heard a lot of these companies, really changing their tune."

"About 5.8 million homes in the U.S. have solar installed, that's 8.2% of U.S. homes that are suitable for solar, according to Wood Mackenzie. The firm says just over half the installations for the first three quarters of last year were owned by a third-party, such as a leasing company."

The residential solar industry is undergoing a significant shift toward leasing models as federal tax incentives for purchased solar panels were eliminated under recent legislation. Solar installation companies, including major national players and small local firms, are increasingly offering third-party ownership arrangements where customers lease panels rather than buy them. This transition is driven by the removal of tax credits that previously reduced purchase prices by at least 30%, while similar incentives for leased panels persist. Currently, over half of residential solar installations use third-party ownership. However, leasing arrangements present challenges including potential home value reduction and service delays, alongside existing industry concerns about aggressive sales tactics.

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