For years, homeowners have relied on the 30% Federal Investment Tax Credit (FITC) to make going solar more affordable. But starting January 1, 2026, that incentive is scheduled to expire for cash and financed solar purchases, dramatically changing the economics of home solar ownership.
If you’ve been waiting to go solar, there’s good news: solar leasing and battery storage leases will remain an affordable, incentive-backed option even after the tax credit ends.
Let’s break down what this means and why leasing could be your best move moving forward.
What’s Changing After 2025
Under current law, the 30% FITC applies to systems that are owned — meaning cash purchases or financed systems (like solar loans). Once the credit expires at the end of 2025, those options lose a major piece of their savings potential.
Leases and PPAs (Power Purchase Agreements), on the other hand, are structured differently. The leasing company owns the system, which means they claim the tax credit — and pass the savings on to you through lower monthly payments and locked-in energy rates.
That means while homeowners paying cash or using loans lose that 30% benefit, lease customers will continue to enjoy lower pricing and no up-front cost.
Why Leasing Will Be the Smart Play
1. No Upfront Cost or Tax Hassles
Forget waiting for tax season or worrying if you qualify for a credit — leasing lets you start saving immediately, with $0 down options available.
2. FITC Savings Still Apply (Indirectly)
Leasing companies still receive the federal tax credit and roll that value into your lease pricing — so you still benefit from lower overall costs, even after the credit disappears for purchases.
3. Maintenance and Warranty Are Included
When you lease, the provider owns and maintains the system. You don’t pay for inverter replacements, panel repairs, or system monitoring — everything’s covered.
4. Guaranteed Performance
Leases often come with production guarantees — if your system doesn’t produce as promised, you’re compensated for the difference.
5. Add Battery Backup Without the Upfront Cost
Home battery systems like the Tesla Powerwall 3 or Enphase IQ Battery 5P can easily be bundled into your solar lease. That means you can enjoy backup power during outages without paying $10,000–$20,000 out of pocket.
The Future: Energy Independence Without Ownership Stress
As utility rates continue to rise and net metering programs tighten under NEM 3.0, leasing offers a predictable, low-cost energy solution without the long-term financial commitment of ownership.
You get:
Locked-in energy rates for 20–25 years
Full system monitoring and service
Access to cutting-edge solar and battery tech
Protection against future rate hikes
And since the leasing company still leverages federal incentives, you’re not left behind when the FITC disappears.
The Bottom Line: Don’t Wait Until It’s Too Late
The window to claim the 30% tax credit as a cash or loan buyer closes on December 31, 2025. But, you still have a powerful alternative: a solar and battery lease or PPA that keeps your savings strong and your power independent.
Interested in locking in a solar lease?
Get started today with a free, no-obligation quote — and see how much you can save by switching to a Solar + Battery Lease with Sunlux. Give us a call at 877-467-6712 or visit our website at www.sunlux.com