In July of 2025, the passage of the Big Beautiful Bill (BBB) dealt the residential solar industry what felt, at the time, like an existential blow. The legislation included a provision that eliminated the 30% residential solar tax credit beginning in 2026. Because that credit has long been the foundation of residential solar economics, the change felt like a major setback, both for homeowners considering solar and for the installers who make their living installing it.
Much of the early coverage reflected that sentiment. Headlines framed the change as a disaster for the financial viability of residential solar, and on the surface, that reaction seemed reasonable.
What received far less attention, however, was a critical (and often overlooked) detail buried in the legislation: while the residential solar tax credit is going away, the commercial solar tax credit remains fully intact.
That distinction, and the not-so-obvious implications it carries, are quietly reshaping the economics of residential solar and how many homeowners will acquire it moving forward.
But the commercial tax credit should not have anything to do with residential projects, right?
We initially thought so.
Surprisingly, that assumption turns out to be wrong.
Because commercial entities can still claim tax credits and accelerated depreciation for tax savings, a growing class of third-party ownership (TPO) programs has emerged. Under these structures, a commercial entity purchases and temporarily owns a residential solar system on a homeowner’s behalf, captures incentives the homeowner can no longer claim directly, and then passes a significant portion of those savings back to the homeowner through mechanisms such as lease-to-own arrangements or power purchase agreements (PPAs).
When residential projects use TPO structures intelligently to capture all available incentives, the result can be surprising: an effective total system cost that is 40% or more below traditional cash ownership, and in many cases, better than what the 30% residential tax credit once delivered.
We know this can all sound like fuzzy math that is too good to be true.
To be candid, when we first started hearing pitches for these programs at industry events in the summer of 2025, our reaction was deeply skeptical. We all but checked out of the conversation when we heard the words “lease” and “PPA.” Residential leases and PPAs have earned a poor reputation with us over the years, and our instinct was that these offerings were simply repackaged versions of old, flawed ideas.
But as 2025 progressed, more homeowners began asking us what solar would look like after the tax credit expired. That prompted us (begrudgingly) to take the time to do a deeper dive into the new TPO programs that were beginning to emerge.
What we found surprised us.
When structured properly, some of these programs can deliver very compelling financial outcomes for homeowners.
One program in particular stood out.
Introducing Propel: A TPO Structure Providing Homeowners a 40% Reduction in System Cost
As we enter 2026, the most compelling TPO program we have evaluated to date is called Propel.
Propel is a third-party ownership program designed specifically for Enphase-based residential solar and battery systems. It is facilitated by Concert in partnership with CED Greentech Renewables. CED manages equipment procurement and provides engineering support, while Concert serves as the capital partner that temporarily owns the system and monetizes incentives homeowners can no longer claim themselves. KW Solar participates as the installing contractor.
To better understand how this structure works in the real world, a brief case study helps clarify how Propel applies to a typical homeowner.
A Side-by-Side Cost Comparison: Propel vs. Cash Purchase
To understand how TPO structures (and Propel specifically) work in practice, let’s look at a hypothetical but representative example.
Assume a homeowner wants to install our most commonly requested system size using our best-selling equipment: an 8 kW solar system paired with 20 kWh of battery storage. The homeowner selects the following equipment:
- Silfab solar panels
- Enphase microinverters
- Two Enphase 10C batteries
In today’s market, this system typically costs around $50,000 installed.
Installing the System in 2025 (with the 30% ITC)
- System cost: $50,000
- 30% federal tax credit: –$15,000
- Net cost: $35,000
Installing the Same System in 2026 (Cash Purchase)
- System cost: $50,000
- No residential tax credit
- Net cost: $50,000
For a cash buyer, solar effectively became far more expensive as the calendar turned from December to January.
This is where Propel introduces a fundamentally different, financially compelling alternative.
Installing the Same System in 2026 Using Propel
Under Propel, Concert (as a commercial entity) can claim:
- The 30% Investment Tax Credit
- A 10% domestic content bonus for qualifying equipment (Enphase and Silfab qualify)
- A 10% energy community bonus in many areas (most of Houston qualifies)
- Accelerated depreciation over five years, which provides significant tax savings to the commercial owner
All of these incentives create substantial value for the third-party owner. The key question is how much of that value flows back to the homeowner.
In practice, the incentives are large enough that the same $50,000 system can be offered to the homeowner at an approximate net cost of $28,500.
- Approximate net system cost: $28,500
- Total reduction vs. cash ownership: 43%
That result is significantly better than the $35,000 net cost under the old 30% residential tax credit model.
So what’s the catch?
There is one, but in our view, it’s relatively minor.
How Ownership Works Under Propel
Propel is structured as a prepaid energy services agreement. In practical terms, it functions as a temporary ownership structure that transitions to full homeowner ownership.
Here’s how it typically works:
- You finance the reduced $28,500 amount, often over a 25-year term
- Monthly payments begin once the system is commissioned
- Concert owns the system for the first five years
- Ownership transfers to you after year five
- You may pay the system off early at any time
The primary “catch” is that the homeowner does not own the system during the first five years. Concert’s ownership during this period exists solely to monetize incentives and depreciation.
There are no restrictions on system use and Concert has no desire or incentive to impose any. You generate your own power, rely on your batteries during outages, and offset your utility bill exactly as you would with direct ownership.
Given the magnitude of the cost savings, we view this temporary ownership period as a relatively small tradeoff.
Why Propel Is a Game-Changer
The most important takeaway is simple:
The end of the 30% residential tax credit does not mean solar becomes unaffordable.
In fact, for many homeowners, well-structured third-party ownership programs can result in a lower lifetime cost of solar and storage than ever before.
Through TPO programs like Propel, all residential homeowners are still able to indirectly gain access to solar incentives even if they don’t have any personal tax liability.
Final Thoughts
At KW Solar, we have always been cautious about new solar financing structures, and that caution remains. However, ignoring the incentive landscape created by the BBB, and the real financial utility of new programs like Propel heading into 2026, would be a mistake.
With third-party ownership programs such as Propel delivering some of the lowest net system costs we’ve seen in over a decade in the business, we believe it’s prudent for homeowners to be informed regarding these options when evaluating a solar project.
If you’re considering solar in 2026 and want to understand how programs like Propel could reduce your cost of ownership, we’d be happy to explore the details further with you.
Reach out to KW Solar and lean on our expertise so we can design the right technical solution for your system goals and the right financial solution for your budget.
Frequently Asked Questions (FAQ)
Is third-party ownership (TPO) the same thing as the old solar leases and PPAs I’ve heard bad things about?
Not exactly. Traditional residential leases and PPAs were often structured in ways that favored the provider over the homeowner, with limited transparency, poor escalation terms, and little long-term flexibility. The newer TPO structures emerging for 2026 are fundamentally different. They are designed primarily to monetize tax incentives that homeowners can no longer claim directly and then pass those savings back to the homeowner. In the case of Propel, the structure is temporary and transitions to full homeowner ownership after a defined period.
Do I lose control of my system if I don’t own it during the first five years?
No. Even during the temporary ownership period, you operate the system exactly as you would if you owned it outright. You generate your own electricity, use your batteries during outages, and offset your utility bill the same way. There are no usage restrictions, production caps, or limitations on how you use the system.
What happens after the five-year ownership transfer?
After year five, ownership transfers to you. At that point, the system functions just like a traditionally owned solar and battery system, without the temporary ownership structure. You can continue making payments, pay the system off early, or simply enjoy the long-term benefits of ownership.
Can I pay the system off early?
Yes. Propel structures typically allow early payoff options. This gives homeowners flexibility if their financial situation changes or if they prefer to eliminate payments sooner.
What if I sell my home during the five-year period?
In most cases, the agreement can be transferred to the new homeowner, similar to other solar financing arrangements. Because the net system cost is significantly lower than traditional options, this structure is often easier to explain and justify during a home sale than older lease models.
Does this affect my ability to qualify for utility incentives or net metering?
No. The system interconnects with the utility and operates under the same net metering or export compensation rules as a traditionally owned system. From the utility’s perspective, nothing changes.
Is this only available for certain equipment?
Yes. Programs like Propel are designed around specific equipment that qualifies for domestic content bonuses and meets other eligibility requirements. That’s one reason we emphasize Enphase and Silfab equipment in these examples.
Why can a third party claim incentives that I can’t?
Commercial entities can still access federal investment tax credits, bonus credits, and accelerated depreciation under the current law. TPO structures are simply a way to legally and efficiently channel those incentives into residential projects instead of letting them go unused.
Is this too good to be true?
That was our initial reaction as well. The math only works because multiple incentives stack together in a way that homeowners can no longer access directly. When structured properly, the savings are real—but the details matter. Not all TPO programs are created equal, which is why we’ve taken a cautious, selective approach.
Is a TPO structure right for everyone?
No. Cash ownership may still make sense for some homeowners, depending on their goals, timeline, and financial situation. Our role is to help you understand all available options and choose the structure that delivers the best overall outcome for you.