Lease, buy, or solar PPA? How to install solar panels in 2026

If you’re thinking about going solar in 2026, you’ve probably heard some mixed messages:

• “Tax credits are ending.”
• “You’ll have to lease.”
• “You missed your chance.”

Let’s clear it up. Yes, the federal tax credit for homeowner-owned systems is sunsetting after 2025. But no, that doesn’t mean solar is off the table. In fact, for many homeowners, 2026 could be the easiest time to go solar – as long as you know what to expect.

Let’s break down the three main options for going solar in 2026, and how to choose the one that’s right for your home, your goals, and your budget. If you have questions about your home, just give us call at (888) 586-3343, or send us a message:

With more than 5,000 projects completed, EDGE Energy is the most trusted home energy contractor in Maryland, Washington D.C., and Virginia. We’ve earned ENERGY STAR® Contractor of the Year Award six times and helped our clients unlock over $24 million in tax credits since 2006.

Table of contents

• The homeowner tax credit is ending
• Solar PPA vs. solar lease: What’s the difference?
• Why a solar PPA makes sense in 2026
• Solar ownership is still an option — but timing matters
• Rebates can help bridge the gap
• Final thoughts: Should you lease or buy solar panels in 2026?

The homeowner tax credit is ending

Through 2025, homeowners who purchase solar panels (with cash or a loan) qualify for the 30% federal tax credit known as the Residential Clean Energy Credit (25D). That ends after December 31, 2025 for homeowner-owned systems.

So if you’re planning to buy solar panels in 2026, you won’t get that tax break.

That’s a big shift. But it doesn’t mean solar stops making financial sense. It just means third-party owned systems like solar leases and PPAs will become the default option for many homeowners.

Solar PPA vS. solar lease: What’s the difference?

Both a solar lease and a solar PPA (power purchase agreement) fall under the same category: third-party ownership. That means another company owns the solar panels, and you get the benefit of the energy they produce.

But there’s a key difference:

Term	What you pay	How it works
Solar Lease	Flat monthly fee	You lease the panels and use the energy they generate
Solar PPA	Price per kWh	You only pay for the energy you use — like your current utility bill

EDGE Energy offers solar PPAs, not leases, because they tend to save homeowners more money and offer more transparency. With a solar PPA, you pay only for the clean power your system generates — and usually at a lower rate than your utility.

Why a solar PPA makes sense in 2026

A lot of people don’t realize this, but: You’re already in a PPA.

Your utility charges you every month for power. That’s a power purchase agreement — you just don’t get any of the benefits.

With a solar PPA, you:

• Lock in predictable rates
• Stop paying for dirty grid power
• Get a brand-new solar system on your roof with no upfront cost
• Don’t deal with maintenance, repairs, or risk

When you sign a solar lease or PPA, the system is owned by a third party (not you). That company can still claim the Clean Electricity Investment Credit (Section 48E) — and pass the value on to you through lower pricing.

The IRS recently updated the rules:

• If construction on your solar system starts by July 4, 2026, it can be placed in service as late as December 31, 2029.
• If construction starts after July 4, 2026, the system must be running by December 31, 2027.

In plain English: Leases and PPAs will still qualify for federal tax support through at least 2027, and potentially through 2029. That’s a big reason why TPO (third-party owned) solar will dominate in 2026.

“We looked at buying solar panels, but the PPA made more sense. No big upfront payment, no tax paperwork. Just clean energy for less than our utility rate.”
– EDGE Solar Customer, Maryland

Curious whether a solar PPA makes sense for your home? Start by sending us a message.

Solar ownership is still an option — but timing matters

Want to own your system instead of leasing solar panels or going with a PPA?

It’s still possible. But without the tax credit, the numbers get tighter — especially in the first few years. That’s where local rebates, energy savings, and performance guarantees come into play.

At EDGE, we work with all kinds of homeowners, offering:

• Cash purchases
• Low-interest solar loans
• Long-term PPAs with no hidden fees

If owning your system is important to you, we’ll help you build a plan that still makes sense without the federal credit. Just give us a call at: (888) 586-3343

Rebates can help bridge the gap

Even without the federal tax credit, you can still cut the cost of going solar in 2026 with state and local rebates:

Maryland homeowners:

• Up to $7,500 off solar through MSAP (income-based)
• Up to $15,000 for heat pumps and insulation
• County rebates in Prince George’s and Montgomery

Virginia homeowners:

• Solar tax exemptions in many counties
• Net metering still available
• Whole-home energy upgrade rebates expected soon

Maryland programs require a home energy audit first. That’s why starting with an audit now is the smartest move you can make — even if your install isn’t until 2026.

Final thoughts: Should you lease or buy solar panels in 2026?

If you’re planning for 2026:

• Buying solar panels no longer qualifies for the federal tax credit
• Leasing solar panels or signing a solar PPA can still get you big savings
• Local rebates and incentives can fill the gap — if you plan ahead
• A home energy audit is the best way to figure out what’s right for your home

Let’s talk about what’s possible

EDGE Energy has helped thousands of DMV homeowners cut energy costs, reduce their carbon footprint, and install solar with confidence. Whether you’re ready to install now or just planning for the future, we’re here to help.

Book a home energy audit or solar consultation today, and let’s make a plan for your home. Just call (888) 586-3343.or send us a message to get started.