Three Ways to Go Solar
With the federal ITC expiration changing the financial landscape, how you finance your solar system matters more than ever. The three options are buying (cash or loan), leasing, or a Power Purchase Agreement (PPA). Each has different implications for savings, ownership, home value, and flexibility.
Option 1: Buy (Cash or Loan)
You purchase the system outright or finance with a solar loan. You own the equipment and get all financial benefits. For a typical 8 kW Westchester system: $30,000 minus $5,000 NY State credit equals $25,000 net cost, with roughly $2,800 annual savings and 8-9 year payback. You get maximum long-term savings (over $45,000 over 25 years), own the asset, benefit from the 15-year property tax exemption, and keep all VDER/net metering credits. Best for homeowners staying 7+ years who want to maximize lifetime savings.
Option 2: Solar Lease
A solar company installs panels on your roof and you pay a fixed monthly lease of $100-$160/month with a typical 1-3% annual escalator over a 20-25 year term. No upfront cost and no maintenance responsibility, but you don't own the system, get lower total savings, face home sale complications (buyer assumes lease or you buy out), and the lease company keeps VDER credits and the property tax exemption benefit. Watch for hidden red flags in lease contracts. Important: lease companies can still access the commercial ITC (Section 48E) through December 2027 if construction starts by July 4, 2026, so pricing may still be competitive in early-mid 2026.
Option 3: PPA (Power Purchase Agreement)
Similar to a lease, but you pay a per-kWh rate ($0.12-$0.20/kWh vs. Con Edison's roughly $0.31/kWh) instead of a fixed monthly payment, with a 1-3% annual escalator. You only pay for electricity produced, so if panels underperform you pay less. Same ownership drawbacks as a lease: you don't own the system, the PPA company keeps incentive benefits, and the escalator can approach utility rates in later years. Same Section 48E timeline applies for competitive pricing through mid-2026.
The 2026 Strategy
Without the federal ITC, buying is still the best long-term financial decision. Even without the federal credit, ownership delivers the best 25-year return. Finance with a solar loan if needed, but keep the rate under 7%. If you want $0 down, lock in a lease or PPA before mid-2026 while companies can still pass through commercial credit savings. Either way, make sure any proposal uses 2026 incentive numbers. If you see a 30% federal residential credit in the math, the proposal is wrong.
Run Your Own Numbers
Upload your Con Edison or NYSEG bill and we'll show you exactly what each financing option looks like for your specific situation, with the correct 2026 incentives.
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