Skip to main content

Ownership path

Cash: the highest long-term return, no dealer fee, and no lender.

The Section 25D residential credit expired December 31, 2025. State incentives, SRECs, and net metering remain. Cash purchase is still the path with the highest 25-year savings for buyers with available capital.

Typical gross cash purchase range for a residential system (2026)
17,500
Typical payback period in high-rate states (no federal credit in 2026)
9
Dealer fee on a cash purchase (you pay the actual system cost)
0
Federal residential credit in 2026 (Section 25D expired December 31, 2025)
0

Financing detail

Cash Purchase

Ownership outcome

You own the system

Federal Section 48E applies

Not directly -- Section 25D residential credit expired December 31, 2025

Data as of: 2026-06-02

Strengths

  • Highest 25-year net savings: no interest cost, no monthly payment
  • Full ownership from day one; home value increases immediately
  • Qualifies for all state, local, and SREC incentives
  • No lien on property; clean title for home sale
  • No third-party involvement in energy decisions

Considerations

  • Large upfront capital requirement ($17,500-$30,500+ for a typical residential system)
  • No federal residential tax credit in 2026: Section 25D expired December 31, 2025
  • Full maintenance responsibility (most equipment carries 25-year manufacturer warranties)
  • Opportunity cost if capital could earn higher returns elsewhere

Best for

Homeowners with liquid capital who want maximum long-term ROI and clean title. Also commercial property owners claiming Section 48E ITC and MACRS depreciation.

Compare this option against cash, HELOC, and prepaid in the 25-year true-cost tool.

No contact required. Enter your system cost and dealer fee percentage and see the total for each path.

Open the Financing Comparison Tool

Common questions

Questions about Cash Purchase

Back to all financing options

How do I compare this financing option to others?
The financing comparison tool at solarinstallersnear.me/financing/ shows the 25-year true cost of cash purchase, solar loan with dealer fee, prepaid lease, HELOC, solar lease, and PPA side by side. Enter your system cost and adjust the dealer fee percentage to match any specific lender proposal.

What should I ask before signing any solar financing contract?
Ask for the total amount financed (not just the monthly payment), the dealer fee in dollar terms, the full amortization schedule, prepayment penalty terms, and what happens to the contract if the lender or provider files for bankruptcy. Review any escalator clauses and end-of-contract terms in full.

Want to see this financing option compared against every other path, with the dealer fee disclosed in dollar terms?

A free in-home assessment includes a full financing comparison. No shared leads. No commission on the financing recommendation.

Book Your Free Estimate Return to Financing Hub