| Cash or loan | Lease | PPA | |
|---|---|---|---|
| Who owns the panels | You | The lessor | The provider |
| How you pay | Up front, or a loan payment | A fixed monthly payment | A price per kWh produced |
| Federal 25D credit in 2026 | None: not available after 2025-12-31 | Not for you; you do not own the panels | Not for you; you do not own the panels |
| Federal 48E credit | Not applicable to you | Rules apply to the owner; see below | Rules apply to the owner; see below |
| Texas property tax exemption (11.27) | You can apply for the added value | 11.27(a-1) lets the device owner (the lessor) claim without owning the land; how each district handles leases was not checked | Same as lease |
| Who is paid for grid exports | You, under your plan | Depends on the contract and your plan | Depends on the contract and your plan |
| Roof and warranty risk | Yours, plus the product warranty | Read the contract | Read the contract |
What the tax rules say
For cash or loan buyers: the IRS says 25D "is not available for any property placed in service after December 31, 2025", and its FAQ (FS-2025-05, FAQ 7) says paying in 2025 does not help if installation was completed in 2026. For leases and PPAs, Section 48E is the provision that might reach the owner. The 2025 budget act stops it for wind and solar placed in service after 2027-12-31 and sets a construction-start date of 2026-07-04. The new leasing denial in 48E(i) names solar water heating and small wind, not rooftop solar electric property. No primary page read says a lessor passes a credit to the customer, so any lease or PPA price that assumes one is worth asking about. Details: the federal credit guide.
What the price data shows
Berkeley Lab's 2026 data update reports a median price of $3.6 per watt for host-owned stand-alone residential PV installed in 2025, $3.0 for known cash purchases and $4.5 for known loan-financed ones, before incentives. Third-party-owned systems are not in that figure, so there is no like-for-like price for leases and PPAs here.
Questions to put to any offer
- What is the total of all payments over the full term, with the yearly escalator applied?
- What happens to the contract if you sell the house?
- Who is responsible for removal, repair and roof work?
- How is the buyback handled, and who receives it?
- What does the contract say about cancellation? Texas gives 5 business days after signing for home solar sale and lease agreements (Occupations Code 1806.156); see the door-to-door checklist.
This page is general information, not advice for your situation. Ask a licensed professional about taxes and contracts.