A New Path to Solar in 2026: Understanding Residential Solar Leasing

Dec 5

If you’ve talked to anyone who’s gone solar in the last decade, you’ll hear a similar story: “We bought our system,” or “We financed it with a loan.”

That’s because, for a long time, purchasing was simply the clearest, most cost-effective way to power your home with the sun. Leasing didn’t make much sense. The products available in our region were confusing, full of escalators, and didn’t always deliver real savings.

But in late 2025, the landscape changed. And suddenly, a residential solar lease is not only viable, but for some families, it’s the option that finally makes solar possible.

At Sugar Hollow Solar, we’ve always been thoughtful about what kind of products we bring into our community. We don’t chase trends or offer products that don’t truly benefit our neighbors. So when we say solar leasing is now worth a closer look, it’s because the policy landscape has shifted, the economics have changed, and best-in-market terms have finally become available through our national cooperative partner, Amicus. As an Amicus member, we’re able to offer industry-leading rates and terms that align with our values, ensuring we maintain the reputation and integrity you expect, as the solar market continues to evolve.

Let’s break down what this new lease option actually is, who it’s good for, how it works, and why we’re offering it now.

What Is a Solar Lease, Really?

A solar lease is a type of third-party ownership, or TPO. That means:

You don’t own the solar system on your home.
A third-party owns, monitors, and maintains it.
You pay a fixed monthly fee to use the electricity it produces.
Enjoy lower utility bills, with monitoring and maintenance taken care of for you.

Think of it a little like an automotive lease: you get the benefit of the car without owning it. In this case, you get the benefit of clean, affordable solar energy without taking on a loan or paying anything up front.

Your monthly lease payment is based on the estimated yearly production of your custom system (which we determine through our design process and site assessment). The term is 25 years, and — this is big — there is no annual cost escalator. Your payment doesn’t rise 2–4% per year like traditional lease products.

And after Year 5, you can buy the system at fair market value if you want to transition into ownership. Many households appreciate having that flexibility.

Why Solar Leasing Makes Sense Now (When It Didn’t Before)

The shift happened because federal solar incentives changed.

Starting December 31, 2025, residential solar systems will no longer qualify for the 30% federal income tax credit. Without that credit, many families who previously purchased solar for the financial benefit will find that path less accessible.

However — and this is the key — commercial entities still qualify for:

The 30% solar tax credit
Accelerated depreciation

So when a commercial entity (the TPO) owns the system on your home, they receive those incentives. And because of that, they can offer:

Lower monthly lease payments
Immediate year-one savings
No out-of-pocket cost
Maintenance included
Long-term stability

This opens the door for families who don’t want a loan, can’t claim a tax credit, or simply prefer not to put capital into a large purchase right now.

The TPO benefits from incentives you no longer have access to. You benefit from clean energy, predictable costs, and savings from Day One.

It’s a model that finally works.

Why Sugar Hollow Solar Is Offering a Lease Now (When We Didn’t Before)

For years, we declined to offer leases because the terms simply didn’t meet our standards. Escalators, down payments, limited savings… it didn’t feel right to putting this product in front of our community.

But through our membership in the Amicus Solar Cooperative, a nationwide network of mission-driven solar companies, we were able to access the most homeowner-friendly lease terms we’ve ever seen in this market. That includes:

$0 down, no upfront cost, no installation cost
No annual rate increases — your payment stays the same for 25 years
A strong production guarantee
Full maintenance coverage
Local installation and local service through our own team
A buyout option after Year 5
Fair market purchase pricing if you choose to buy your system later

In short, we didn’t adopt leasing until we felt genuinely proud to offer it.

How a Lease Differs from Buying or Financing Your System

Choosing between a lease and a purchase usually comes down to your financial priorities:

If you want maximum lifetime savings: Purchasing wins.
If you don’t want a loan or a large upfront cost: Leasing can be a great option.
If you prefer predictable costs and no maintenance fees for the homeowner: Leasing offers simplicity.
If you want to own your system eventually: Leasing with a buyout is flexible.

There's no “right” option, just the one that fits your household best. Our job is to help you compare all options clearly.

What Makes Our Lease Program Unique

If you’ve heard mixed things about solar leases, you’re not imagining it. Not all leases are created equal.

Here’s what sets the Sugar Hollow Solar lease apart:

1. No annual cost escalator

Many lease products increase your payment every year. Ours does not. Your Year One payment is your Year 25 payment.

2. Guaranteed production

If the system ever produces less than promised, you’re reimbursed.

3. Maintenance and monitoring included

No repair bills. No equipment headaches. It’s all covered, and your TPO is motivated to make quick fixes because of the production guarantee.

4. Immediate savings on your utility bill

Most families save 10% or more in the first year. And savings grow as utility rates rise.

5. The same Sugar Hollow service you already know

We stay with you from consultation to installation to commissioning, and our service team remains your local support long after.

6. Option to purchase after Year 5

If you fall in love with your solar system (and we think you will) you can buy it at fair market value.

So… Is a Solar Lease Right for You?

A lease isn’t the perfect option for everyone, and we’ll never pretend otherwise. But for many families in Western North Carolina and Upstate South Carolina, the changing policies and new market options created a door that wasn’t open before.

It’s a way to:

Go solar with zero upfront cost
Enjoy immediate savings
Avoid loans or credit impacts
Skip maintenance responsibilities since the TPO handles these
Keep your payment stable for 25 years

That’s a meaningful pathway for households that have wanted solar for years but didn’t feel ready to purchase. And as always, we’re here to talk you through it honestly. The pros, the cons, the numbers, and everything in between. If leasing isn’t right for you, we’ll tell you that, too. If it is, we’ll help you step into clean energy with confidence.