The End of the 30% Federal Solar Tax Credit: Why Solar Ownership Still Matters
What’s Changing in 2026
The federal solar tax credit for solar ownership — currently at 30% — is scheduled to end at the end of 2025. This means homeowners who purchase and own their solar systems will no longer receive the same level of tax benefit they do today.
For many, this could feel like the end of an era — but it’s not the end of solar ownership. Instead, it’s a turning point. The solar industry is shifting, and understanding what comes next is key to making a smart decision for your home.
A Shift Toward Third-Party Ownership
As the 30% incentive winds down, the solar industry is seeing a steady shift toward third-party ownership (TPO) — including leases and Power Purchase Agreements (PPAs).
These options are often marketed as “no-cost” or “low-cost” ways to go solar. But while they may sound appealing upfront, the long-term reality often tells a different story.
The Hidden Downsides of Solar Leases and PPAs
When you lease your solar system or sign a PPA, you don’t actually own the equipment on your roof. Instead, you’re renting it from a third-party company that collects the financial benefits of the system — including the tax credit.
Here are a few reasons Spectrum Energy continues to caution homeowners about third-party ownership:
Escalating payments: Many leases include an annual price escalator — meaning your cost per kWh increases every year, while ownership locks in your rate for decades.
Complicated buyouts: If you sell your home, buying out the system or transferring the contract can be costly and time-consuming.
Reduced home value impact: Owned systems can increase property value, while leased systems generally don’t.
Limited control: The leasing company maintains ownership and makes most decisions about the system — including maintenance, monitoring, and even removal.
In short: third-party ownership removes much of the financial and operational benefit that makes solar so attractive in the first place.
Why Spectrum Energy Will Continue to Focus on Solar Ownership
At Spectrum Energy, we believe in empowering our customers — not locking them into long-term contracts they don’t fully control.
That’s why we only offer solar ownership. When you purchase your system through Spectrum Energy, you receive:
A 12-year labor warranty
A 15-year production guarantee
High-quality components from Maxeon, REC, Enphase, and IronRidge
Clear, transparent pricing with no hidden escalators or lease terms
We focus on value, clean energy production, and comprehensive warranty protection — all backed by long-term performance you can measure.
The Future of Solar: Lower Costs, Smarter Technology, and Energy Independence
Even as the federal tax credit phases out, the future of solar energy in Massachusetts remains incredibly bright.
Equipment prices have dropped steadily over the past decade, and that trend will likely continue as domestic solar manufacturing expands under the Inflation Reduction Act’s Domestic Content Bonus Adders. Meanwhile, innovation in battery storage, EV integration, and home energy management continues to redefine what it means to own your power.
Looking ahead, we expect to see:
Further adoption of clean energy technologies as Massachusetts accelerates toward its 2050 net-zero goals.
Stable or lower solar costs driven by domestic supply chains and efficiency gains.
Greater homeowner control as solar, storage, and electric vehicles merge into unified home energy systems.
The bottom line? Incentives may change, but the value of owning your energy future will only grow stronger.
Final Thoughts
The 30% federal solar tax credit has been an incredible driver of clean energy adoption — but it’s not the only reason to go solar.
By choosing ownership over third-party leasing, Massachusetts homeowners retain full control of their energy system, enjoy predictable long-term savings, and strengthen their home’s overall value.
