Although the residential solar tax credits expire at the end of this month, solar installers and financers are pointing to another affordable option – leasing. “The underlying economics of solar is still really strong despite federal policy changes that we’ve seen come down over the past year,” said Maryrose Myrtetus, executive director of the Philadelphia Green Capital Corporation.
“Because of the expiration of that tax credit, there’s actually been a bigger push for leasing.”
The 30% tax credit for residential solar installations that expires at the end of 2025, applied to homeowners who paid the upfront costs and owned their solar panels. But the commercial solar tax credit, which provides leasing opportunities for homeowners, remains until the end of 2027. The financing for leasing works since third parties own the installation, and pass on all or part of their 30% tax credit to the customer. “So the third party is still able to monetize the investment tax credit,” Myrtetus said. “The tax credit value is baked into the pricing of the lease.”
