Paying for solar, 2026
How to pay for solar and batteries in Southern California (2026)
There are four ways to pay: cash, a solar loan, a power purchase agreement, or a prepaid lease. The residential tax credit is gone, which changed which one makes sense for most homeowners. Here is each option explained honestly, including the one we use most.
Quick answer: paying for solar and batteries in Southern California (September 2026)
- Cash: lowest lifetime cost, no third party. No federal credit on a 2026 purchase.
- Solar loan: you own it from day one; $0 down is common. Ask for the cash price, the financed price, and the dealer fee in dollars.
- PPA: $0 down, you buy the power per kWh, the provider owns the system. Compare the escalator (0% vs. 2.9%) and the year-20 rate.
- Prepaid lease: roughly 30% off the top because the financing partner claims the federal commercial credit (48E). It owns the system years 1–5; ownership transfers to you at the start of year 6 at essentially no cost. This is the main vehicle we offer in 2026.
- What changed: the 30% residential credit (25D) expired December 31, 2025. Any quote that still shows it is wrong.
- Rates: current loan rates vary by lender and credit; we show them in writing on your quote, not as an “as low as” teaser.
The four ways to pay, and who each one fits.
Cash
You have the capital and want the simplest ownership. Lowest lifetime cost per kWh, no interest, no third party.
Solar loan
You want to own the system from day one and spread the cost. Watch the dealer fee and ask for the gross price and $/W in writing.
PPA
You want $0 down and no ownership. You buy the power at a $/kWh rate, usually with an annual escalator. Best for low-credit or short-horizon situations.
Prepaid lease
Our main vehicle in 2026. Roughly 30% off the top from the commercial credit, the financier owns it years 1–5, and you take ownership at the start of year 6.
Cash vs. loan vs. PPA vs. prepaid lease.
The details that matter when you are comparing proposals.
| Term | Cash | Solar loan | PPA | Prepaid lease |
|---|---|---|---|---|
| Upfront cost | Full gross price | $0 down typical | $0 down | Gross price minus the ~30% pass-through, paid up front or financed |
| Who owns the system | You, day one | You, day one (lender holds a UCC-1 on the equipment) | The PPA provider, for the full term | Financier for years 1–5; you from the start of year 6 |
| ~30% federal value | None (25D expired 12/31/2025) | None (25D expired) | Provider claims 48E; reflected in your $/kWh rate | Financier claims 48E and passes ~30% through as a price reduction |
| Escalator | None | None; fixed payment | Typically 0%–2.9% per year on the $/kWh rate | None; the price is set at signing |
| Selling the home | System conveys with the house | Pay off or transfer the loan; UCC-1 released | Buyer assumes the PPA or you buy it out | Years 1–5: buyer assumes or you buy out on the contract schedule. Year 6+: it is yours and conveys |
| Who claims incentives | You (SGIP if eligible) | You (SGIP if eligible) | Provider | Financier claims 48E; SGIP handled per program rules |
| Monthly payment | None | Fixed; rate and term set at signing | Varies with production and the escalator | None if paid up front; fixed if financed |
The prepaid lease, explained honestly.
This is the structure we use most, so it deserves the most scrutiny. Here is exactly how it works and where the catches are.
Why there is ~30% to pass through
The residential credit (25D) is gone, but the federal commercial credit (Section 48E) still exists for a business that owns a clean-energy system. A financing partner, in our case Propel through Concert Finance or Participate Energy, owns the system, claims 48E, and passes roughly 30% of the value through to you as a lower price. The exact pass-through depends on the partner and the project; we show the dollar figure on your quote.
Years 1 through 5: the financier owns it
The IRS requires the credit claimant to hold the system for five years or recapture part of the credit. During that window the system sits on your roof, produces for you, and you have no monthly payment if you prepaid. The financier carries the equipment on its books and typically handles monitoring and any warranty claim through us.
Year 6: ownership transfers to you
At the start of year six, ownership transfers to you at essentially no cost. From that point it is your system, it conveys with the house, and there is no residual, balloon, or end-of-term purchase to negotiate.
The buyout schedule, if you sell early
Every prepaid-lease contract includes a schedule for years one through five: a buyer can assume the remaining term, or you can buy the system out at a price that steps down each year toward the year-six transfer. Ask to see the schedule before you sign. We hand it over with the proposal.
The UCC-1 fixture filing
The financier files a UCC-1 against the equipment, not a lien on your home. It protects their ownership of the panels and battery during years one through five. Title companies sometimes ask about it at a sale or refinance; the financier releases or subordinates it as part of the transfer, and it terminates at year six.
What it is not
It is not a 25-year lease with an escalator, and it is not a PPA. There is no monthly bill for the power and no rate that climbs. Ask for the gross system price and the $/W anyway, so you can see the pass-through as a real reduction against a real number rather than a discount off an inflated one.
We are not tax advisors. The structure is put in writing on every quote and we recommend confirming it with yours. Deeper reads: solar lease vs. PPA in California, solar financing options in 2026, and the lease tax-credit deadline.
Solar loans: terms, dealer fees, and $/W in writing.
A solar loan makes you the owner from day one, with a fixed payment over a term that commonly runs 10 to 25 years. $0 down is standard. Rates vary by lender, term, and credit; we do not advertise a rate because the honest answer is the one on your quote.
The thing to watch is the dealer fee. Many low-advertised-rate loans buy the rate down by adding a fee to the system price, so the “financed price” quietly runs higher than the cash price. That fee is not illegal and is sometimes worth it, but you should see it. Ask for the gross price and the price per watt in writing, for cash and for the loan, side by side. If an installer will not put both on paper, that tells you what you need to know.
- Fixed payment, no escalator
- You claim SGIP if you are eligible
- Lender files a UCC-1 on the equipment until paid
- Compare the financed price to the cash price, not to the utility bill
PPAs: the escalator is the whole deal.
Under a power purchase agreement a third party owns the system and sells you its output at a $/kWh rate for 20 or 25 years. The provider claims the commercial credit, which is how a PPA can start below your utility rate with nothing down.
The number that decides whether a PPA is good or bad is the escalator. A 2.9% annual escalator roughly doubles your rate over 25 years; a 0% escalator holds it flat. Two proposals with the same year-one rate can be $20,000 apart over the term. Ask for the year-20 rate and the total you would pay if production matches the estimate. A PPA fits homeowners who cannot or do not want to own, and it is a poor fit for anyone planning to sell within a few years, since the buyer has to qualify and assume it.
- $0 down, provider owns and maintains
- Rate escalator: ask for 0%, and see the year-20 number
- Buyer must assume the contract at sale
- No ownership, ever, unless you buy out
What changed when 25D expired
Through 2025 a homeowner who bought a system claimed 30% back on their federal return. That credit ended for systems placed in service after December 31, 2025. The practical effect: a cash purchase and a loan lost their 30%, while structures where a business owns the system (prepaid lease, PPA) kept access to the commercial credit. That is the whole reason the prepaid lease moved from a niche product to the default for most of our 2026 projects.
Financing a battery on its own
Battery-only projects can be paid in cash, financed, or placed on a prepaid lease with the same 48E pass-through. Installed battery-only pricing: one Tesla Powerwall 3 $14,500–$18,500; one Enphase IQ Battery 10C $13,000–$15,500; one FranklinWH aPower 2 $16,000–$21,000. Adding a battery to an existing solar loan usually means a second loan or a prepaid lease on the battery alone.
SGIP and the financed amount
The CPUC’s Self-Generation Incentive Program still pays for batteries under its Equity and Equity Resiliency budgets (income-qualified, High Fire Threat District, medical baseline). General-market residential funding is effectively waitlisted. We check your address and tier before quoting and never reduce the financed amount by a rebate you are not eligible for under current CPUC rules.
Bring this to every appointment
Questions to ask any installer, including us.
- 01What is the gross price of the system before any incentive, financing, or discount, and what is that per watt?
- 02If I paid cash today, what would the number be? If it is different from the financed price, what is the difference paying for?
- 03Is there a dealer fee built into the loan price, and how much is it in dollars?
- 04Are you claiming the residential tax credit (25D) anywhere in this proposal? (It expired December 31, 2025. If they say yes, walk away.)
- 05On a prepaid lease: who owns the system in years 1–5, when does ownership transfer, and what does the buyout schedule say if I sell the house in year 3?
- 06On a PPA: what is the $/kWh rate, what is the escalator, and what is the rate in year 20?
- 07Is a UCC-1 filed against the equipment, and who removes it when the term ends?
- 08Is SGIP included in this price? Under which CPUC tier, and what happens to the price if the application is denied?
- 09What is the production estimate, and is there a production guarantee in writing?
Our quotes answer all nine on the first page: gross price, $/W, cash and prepaid-lease numbers side by side, and the payback projection for your utility. Referrals earn a $1,000 bonus, and the referred homeowner gets the same gross-price quote you did.
Financing questions, answered.
- Can I still get the 30% solar tax credit in 2026?
- Not as a homeowner who buys the system. The residential clean energy credit (Section 25D) expired for systems placed in service after December 31, 2025. The federal commercial credit (Section 48E) still exists for a business that owns the system, which is what makes a prepaid lease work: the financing partner claims 48E and passes roughly 30% of the value through to you as a price reduction up front. We are not tax advisors; we put the structure in writing and recommend you confirm it with yours.
- How does the prepaid solar lease actually work?
- You pay a reduced price up front (or finance it). A financing partner such as Propel through Concert Finance or Participate Energy owns the system for the first five years, claims the commercial credit, and passes roughly 30% through as the discount you already received. At the start of year six, ownership transfers to you at essentially no cost. During years one through five the system is on your roof, producing for you, and you carry no monthly payment if you prepaid.
- What happens if I sell my house during the prepaid lease?
- Two options, both spelled out in the contract before you sign: the buyer assumes the remaining term (most do, since there is no payment to assume), or you buy the system out on the contract schedule, which steps down each year toward the year-six transfer. We show you the schedule in writing before you commit.
- Is a solar loan a good idea now that the tax credit is gone?
- It can be, if you want to own from day one and the gross price is honest. The trap is the dealer fee: many solar loans buy down the interest rate by adding a fee to the system price, often a meaningful share of the total. Ask for the cash price and the financed price side by side and the difference in dollars. Current rates vary by lender and credit; we show them in writing on your quote rather than advertising an "as low as" number.
- What is a PPA escalator and why does it matter?
- A power purchase agreement charges you per kWh the system produces. The escalator raises that rate every year, commonly 2.9%, sometimes 0%. Over a 20- or 25-year term a 2.9% escalator roughly doubles the rate. A 0% escalator PPA is a fundamentally different deal from a 2.9% one, so compare the year-20 rate, not the year-1 rate.
- Can I finance a battery without solar?
- Yes. Battery-only projects can be paid in cash, financed with a loan, or placed on a prepaid lease, and the 48E pass-through applies to storage as well. Battery-only pricing starts around $14,500–$18,500 installed for one Tesla Powerwall 3, $13,000–$15,500 for one Enphase IQ Battery 10C, and $16,000–$21,000 for one FranklinWH aPower 2.
- Does SGIP reduce what I finance?
- Only if you qualify under a CPUC tier that has funding: Equity and Equity Resiliency for income-qualified customers, and resiliency support for High Fire Threat District or medical-baseline homes. General-market residential SGIP is effectively waitlisted. We check your address and tier before we quote and do not build a rebate into the financed amount unless you are eligible.
- Is there a referral bonus?
- Yes. When someone you refer installs with Helios, you receive a $1,000 referral bonus. There is no cap on referrals and no dealer-fee games on the referred project; they get the same gross-price quote you did.
Sources and method
Tax-credit facts are from the IRS. The prepaid-lease mechanics describe the programs Helios Energy Global offers through its financing partners; the pass-through percentage is approximate and the exact figure appears on each quote. We publish no interest rates or APRs because they change with lender and credit; we show them in writing. Battery prices are the ranges on our product pages. Consumer-protection and SGIP facts are from the CPUC.
- IRS — Residential Clean Energy Credit (Section 25D) (expired for systems placed in service after December 31, 2025)
- IRS — Clean Electricity Investment Credit (Section 48E) (the commercial credit a financing partner claims on a prepaid lease)
- Participate Energy — prepaid lease (structure of the prepaid lease and year-six transfer)
- CPUC — California Solar Consumer Protection Guide (required disclosure for solar contracts in California)
- CPUC — Self-Generation Incentive Program (Equity, Equity Resiliency, and general-market budget status)
- EnergySage — Solar loans and dealer fees (how dealer fees are built into solar loan pricing)
See all four options on one page.
Gross price, $/W, cash and prepaid-lease side by side, and the buyout schedule in writing. The owner reviews every quote before it is sent.