Commercial Solar & the 48E Credit in 2026: The Lease/PPA Federal Path
With the residential 25D credit gone, Section 48E (30%) is the only federal solar credit left — claimed by lease/PPA owners. Domestic-content bonuses, FEOC rules, and why a lease can now beat a purchase.
The 48E credit: the survivor
Section 48E (Clean Electricity Investment Tax Credit) provides a 30% credit for eligible clean electricity projects and remains active in 2026. Crucially, it is claimed by the owner of the system — so on a residential lease or PPA, the solar company claims it and (in a competitive market) prices part of it into your monthly payments. That is now the single reason a lease can beat a cash purchase for some households.
Domestic content & FEOC bonuses (2026)
New rules apply to projects starting construction in 2026: a domestic-content bonus can add up to 10 percentage points if US-made components meet thresholds, while foreign-entity-of-concern (FEOC) restrictions can disqualify or reduce credits for projects using certain foreign supply chains. These rules affect the value the lessor can price into your contract — a reason to compare lease terms carefully.
Lease vs buy vs PPA in 2026
With 25D gone: cash purchase loses the 30% federal credit entirely (state incentives may still apply). Lease/PPA captures 48E but you never own the system (no resale-value premium, escalators apply). For many households the choice is now: own with no federal credit, or lease with the company’s credit passed through. Run both through the financing comparison tool before deciding.
FAQ
Is there any federal solar credit in 2026?
Yes — Section 48E (30%) for the owner of a commercial or third-party-owned (lease/PPA) system. The residential 25D credit is gone for 2026 installs.
Can I claim 48E as a homeowner?
No — 48E goes to the entity that owns the system. On a lease or PPA, that is the solar company, which may pass part of the value through lower payments.
What are the domestic-content and FEOC rules?
Projects starting construction in 2026 can earn up to +10 points for meeting US domestic-content thresholds, while foreign-entity-of-concern rules can reduce credits for certain supply chains. These affect the economics of the lease/PPA offer you receive.
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Sources
- U.S. EIA — electricity rates by state, eia.gov/electricity/monthly
- NREL PVWatts v8 — solar production by location, pvwatts.nrel.gov
- DSIRE — state incentives and net metering, dsireusa.org
- See how every figure on this page is calculated — PVFig methodology.
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