Solar Lease vs. Buying in Idaho After the Federal Tax Credit

Until 2025, a homeowner who bought a solar system could take 30% of the cost back as a federal tax credit. That credit (Section 25D) ended for systems installed on or after January 1, 2026.

Businesses that own solar can still claim federal credits for now. When a third-party company owns the system on your roof, it can claim that value and share it with you through a lower price. That is the main reason leases are back in the conversation.

• Cash purchase: You own the system from day one. No federal credit, but you can claim Idaho's state deduction. The simplest option with the fewest moving parts.
• Solar loan: You own the system and make monthly payments. Same incentives as cash. Compare interest rates and any dealer fees baked into the price.
• Monthly lease: A third-party company owns the system and you pay a monthly amount. Little or nothing upfront.
• Prepaid lease: You pay upfront for the full term, like a purchase. A third-party owner holds the system for the first several years and claims the federal value, which comes back to you as a lower upfront price.

Through our prepaid lease partner, the upfront discount is typically 25% to 30% of the system price, depending on the property. Idaho sales tax applies to the discounted amount.

The partner owns the system for at least the first five years so it can claim the federal value. In year six, you have the option to take full ownership. If you don't, the system continues under the partner's 25-year guarantee.

If you take ownership, our warranties and the manufacturer warranties still apply. You simply work with us directly for any service.

One detail to plan around: the discount applies to equipment in the original install. A battery added later does not get it, so if you want storage, it usually makes sense to include it from the start.

• Total cost over the life of the system, not just the upfront or monthly number.
• Who owns the system, and when and how you can take ownership.
• Who handles warranty and service during each stage.
• What happens if you sell your home. Get the transfer terms in writing.
• Who can claim Idaho's state deduction. It goes to the system owner.

• Prepaid lease: You want the lowest upfront system price available in 2026 and plan to stay in the home.
• Cash or loan: You want to own the system outright from day one, claim the state deduction, or expand the system freely later.
• Monthly lease: You want little or nothing upfront and are comfortable with a long-term agreement.