⚠️ 2026 update on the federal tax credit
The 30% federal residential solar tax credit (Section 25D) expired on December 31, 2025 for systems you buy with cash or a loan. Cost and savings figures on this page that assume that credit may be out of date. Two things still apply: Nevada's sales-tax and property-tax exemptions and NV Energy net metering, and systems on a lease or PPA may still qualify for a federal incentive through the end of 2027. For numbers that reflect today's incentives, book a free review and talk to a tax professional about your situation.
Quick answer: A solar loan or cash purchase puts the system in your name. The 30% federal tax credit that used to come with ownership expired December 31, 2025 — so a purchase today leans on Nevada's surviving incentives and net-metering value instead. A lease puts the system in a third party's name; they keep any federal incentive (lease/PPA still qualify through 2027) and you pay a fixed (usually escalating) monthly bill. A PPA is similar but you pay per kWh produced. For most homeowners, ownership still wins on lifetime cost. For those with no upfront cash flexibility, a lease or PPA can still pencil — and it's now the only structure tied to a federal incentive.
The three structures, plain English
Cash / loan (ownership)
You buy the system outright with cash or with a solar loan. You own the panels. The 30% federal Residential Clean Energy Credit no longer applies — it expired December 31, 2025 for purchased systems — but you still get Nevada's sales-tax and property-tax exemptions plus 20-year locked net metering. Your monthly bill is the loan payment (if financed) and a small NV Energy minimum.
Lease
A third party owns the panels on your roof. You pay them a fixed monthly bill, usually with a 1.9–2.9% annual escalator. They claim any federal incentive (lease/PPA still qualify through the end of 2027) and other incentives. At end of term (typically 20–25 years), you can buy out the system, extend, or have it removed. The FTC's solar lease primer covers the consumer-protection angle.
PPA (Power Purchase Agreement)
Similar to a lease, but instead of a fixed monthly payment, you pay per kWh the system produces — usually at a rate below current utility rates, with an annual escalator. The third party owns the system and keeps any federal incentive (lease/PPA still qualify through 2027).
Side-by-side
| Factor | Cash / Loan | Lease | PPA |
|---|---|---|---|
| Pricing model | Fixed install price; loan amortizes | Flat monthly bill, with escalator | $/kWh, with escalator |
| Federal tax credit status | None — expired 12/31/2025 for purchases | Third party keeps it (through 2027) | Third party keeps it (through 2027) |
| Install quality control | You pick the installer | Lease provider's installer network | PPA provider's installer network |
| Customer service responsiveness | Installer or agent | Lease provider call center | PPA provider call center |
| System size pressure | Sized to your usage | Often sized larger — more revenue for provider | Same dynamic as lease |
| What happens at home sale | System conveys; equity in system | Buyer must assume lease or you buy out | Buyer must assume PPA or you buy out |
| Maintenance | You (workmanship warranty covers most) | Provider | Provider |
| Lifetime cost (typical) | Lowest | Highest | Mid-to-high |
| Upfront cost | Cash upfront, or $0 with loan | $0 | $0 |
Pros and cons — cash / loan
Pros: Lowest lifetime cost. You own an asset that adds resale value. You keep Nevada's sales-tax and property-tax exemptions and full net-metering value, and you lock your own generation cost as a hedge against rising NV Energy rates. No third-party agreement on your house. Clean home sale.
Cons: Either a cash outlay or a loan on your credit profile. You're responsible for the system after the workmanship warranty period. The 30% federal credit that once offset roughly a third of the cost is gone — it expired December 31, 2025 for purchases — so the payback math now rests on utility savings and the Nevada exemptions alone.
Pros and cons — lease
Pros: $0 down. Provider handles maintenance. Predictable monthly bill (with the escalator caveat).
Cons: Highest lifetime cost in most scenarios. You don't own the asset. The third party — not you — keeps any federal incentive (lease/PPA still qualify through 2027). Lease must be transferred or bought out at home sale. The annual escalator can outpace utility rate increases in some years.
Pros and cons — PPA
Pros: $0 down. Pay only for what's produced (so an underperforming system costs you less). Provider handles maintenance.
Cons: Same ownership and tax credit issues as a lease. The $/kWh rate can rise faster than utility rates in some years. Same home-sale complications.
The ownership math, made concrete
Take a typical Las Vegas system: 8 kW, about $22,800 installed (Nevada's sales-tax exemption already applied — that exemption alone saves roughly $1,900 at Clark County's ~8.375% rate). There's no longer a 30% federal credit to subtract; it expired December 31, 2025 for purchases. What you do keep on an owned system: that sales-tax exemption, the property-tax exemption on the added home value, and 20-year locked net metering at 75% of retail. On a lease or PPA, the third party keeps any federal incentive instead of you. Payback on a cash purchase now runs roughly 9–12 years now that the 30% federal credit has ended — though NV Energy's rising rates keep pulling that number down.
NV Energy net metering interacts with all three
Whether you own, lease, or PPA, the system interconnects under NV Energy's net metering tariff. The credit you receive for excess production is the same regardless of financing — but on a lease or PPA, that net metering credit effectively flows through to the third party (because you're paying them a fixed bill regardless).
Who should do which
- Cash: If you have the cash and don't need the liquidity elsewhere — usually wins on IRR.
- Loan: The default for most homeowners. Builds equity in the system and keeps Nevada's exemptions and net-metering value in your name.
- Lease: Homeowners who want zero upfront cost or zero responsibility for maintenance — and it's now the only structure still tied to a federal incentive (through 2027), which the provider keeps.
- PPA: Same fit as lease, but for those who'd rather pay-per-production than a flat fee.
What I push by default
Loan, with cash if the homeowner has it. The math almost always favors ownership — I want clients keeping the equity, Nevada's exemptions, and full net-metering value, not handing a lease provider the only surviving federal incentive. I'll walk a client into a lease only if it's genuinely the right fit (which is rarer than the industry implies).
Closing
Lease, loan, or PPA isn't a personality test — it's a math problem with a few personal-situation inputs. Here's how the math runs in Las Vegas specifically. If you want me to model your bill against all three structures, request a quote.