Exactly what survived the §25D expiration — stated accurately.
No credit check · ~30% §48E value
Prepaid Solar PlanThe 30% didn't die. It moved.
If you buy solar with cash or a loan in 2026, the federal residential credit is gone — it expired December 31, 2025. But on OC Solar's no-credit-check prepaid plan (and our lease/PPA options), the financier claims the commercial §48E credit and passes the ~30% value through as a lower price. That window runs through ~2027.
Read this before any sales pitch
What actually changed on December 31, 2025
Two facts, stated plainly, because plenty of companies are still blurring them.
The 30% federal credit for buyers ended Dec 31, 2025
If you buy with cash or a loan in 2026, there is no federal residential tax credit — IRC §25D expired. Beware any company still advertising it.
Lease, PPA, and prepaid plans still capture the federal value
On these plans the financier owns the system and claims the commercial §48E credit, then passes the value to you as a lower price — through ~2027. It's a price benefit, not your tax credit.
That second fact is this page. The prepaid plan is how a homeowner — with no credit check, prepaying once or using one of the monthly loans now available — still captures roughly 30% of federal value in 2026. Compare all three financing paths if you want the full picture first.
How the pass-through works
Three steps from §48E to your price
No tax forms, no tax liability required, nothing to claim. The mechanics happen on the financier's side — the result shows up on yours.
Step 1
The financier owns the system and claims §48E
On a prepaid plan (or lease/PPA), the provider — not you — owns the equipment on your roof. As a commercial owner, they're eligible to claim the federal §48E investment credit, which survived the 2025 expiration of the residential credit.
Step 2
The ~30% value is passed into your price
The financier prices the credit into your agreement, so roughly 30% of federal value lands in your favor as a lower price. To be clear: it's a price benefit, not your tax credit. You file nothing and need no tax liability to capture it.
Step 3
You get power cheaper than the utility
You pay one prepaid amount for a system the provider owns and maintains, with an on-bill, locked-in rate for 25 years — instead of buying every kilowatt-hour from the utility at whatever this year's rate hike says.
Prepaid plan at a glance
No credit? No problem.
A prepaid plan through Participate Energy with no credit check that still captures ~30% federal value — with a path to eventual ownership. Built for homeowners whose credit is thin or rebuilding, or who prefer to prepay and skip a lender entirely.
No credit check, no lien
There's no lender in this transaction. Qualification doesn't touch your credit report, and nothing is recorded against your home.
Prepay once — monthly loans available
Pay once and you're done, or take one of the monthly loans now available on this plan. Your advisor will show both side by side before you sign.
~30% federal value captured
The financier claims the commercial §48E credit and passes the value through as a lower price — the federal benefit cash and loan buyers lost on Dec 31, 2025.
A path to ownership
You're not the owner on day one — that's what makes §48E work — but the plan includes a defined path to eventual ownership, explained in writing before you sign.
Provider-owned and maintained
The provider owns, monitors, and maintains the system for the term, with an on-bill, locked-in rate for 25 years. If something needs service, it's their responsibility — not your weekend project.
Installed by OC Solar
The plan is financed through Participate Energy, but the system is designed and installed by OC Solar — a licensed California contractor (CSLB #1023627) with 5,000+ installations completed.
See if your home prequalifies — no credit check, no obligation.
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The honest comparison
Prepaid vs. loan vs. cash in 2026
Each path is right for someone — cash is still the lowest lifetime cost, and a loan still builds equity from day one. But only third-party-owned plans capture federal value this year. Here is the whole picture, tradeoffs included.
Prepaid plan
Captures §48E- Federal value in 2026
- ~30% §48E captured in your price
- Credit check
- None — no lender, no lien
- Monthly payment
- Monthly loans available — or prepay once
- Ownership
- Provider-owned, with a path to ownership
- Maintenance
- Provider-owned & maintained, 25-yr locked-in rate
- Average ROI (estimate)*
- 5–6 yr avg window · ~20% avg yr 1 · ~35% anticipated over 25 yrs
- Honest tradeoff
- Prepaid option is an upfront commitment; not owned day one
Solar loan
No federal credit- Federal value in 2026
- $0 — §25D expired for buyers Dec 31, 2025
- Credit check
- Yes — rate depends on credit
- Monthly payment
- Fixed loan payment, $0 down
- Ownership
- You own it day one, financed
- Maintenance
- You own it; OC Solar services it
- Average ROI (estimate)*
- Varies with rate and term
- Honest tradeoff
- Interest over the term; dealer fee financed into the balance
Pay cash
No federal credit- Federal value in 2026
- $0 — §25D expired for buyers Dec 31, 2025
- Credit check
- None needed
- Monthly payment
- None — pay once, own forever
- Ownership
- You own it day one
- Maintenance
- You own it; OC Solar services it
- Average ROI (estimate)*
- 6–8 yr avg window · ~15% avg yr 1 · ~25% anticipated over 25 yrs
- Honest tradeoff
- Largest upfront outlay — but still the lowest lifetime cost
*Savings and ROI figures are owner-provided projections that assume average utility rates escalating ~5% annually. Estimates only — individual results vary; not a guarantee.
Terms are illustrative as of June 2026 and vary by home and provider. Want a monthly $0-down structure instead of prepaying? Our lease/PPA options capture the same §48E pass-through — compare every option on the financing page.
The window, stated honestly
Why the timing is 2026–2027 — and not a countdown clock
We don't do fake scarcity. These dates come from the federal statute and California law, and they're the same whether you sign with us or anyone else.
§48E pass-through runs through ~2027
The commercial credit behind the pass-through is available for systems placed in service through ~2027, with construction-start windows that apply on the financier's side. After that, this path closes the way §25D did.
California's property-tax exclusion: qualify before Jan 1, 2027
SB 710 made California's active-solar property-tax exclusion permanent for systems qualifying before January 1, 2027 — add solar without raising your property taxes.
What that means practically
Our median sign-to-install is 30 days, so there is genuinely time — this is a 2026–2027 decision, not a this-weekend one. But the math is better inside the window than after it, and the window has a real end date. Incentive framing current as of June 2026.
Questions
Prepaid plan FAQs
The questions homeowners actually ask about §48E, the no-credit-check process, and what happens after the term.
For systems you buy, yes. The federal residential credit (IRC §25D) expired December 31, 2025 — if you purchase with cash or a loan in 2026, there is no federal residential tax credit, and you should be wary of any company still advertising one. What survived is the commercial credit (§48E): on a lease, PPA, or prepaid plan, the financier owns the system, claims §48E, and passes the value to you as a lower price — through ~2027. That's the entire basis of this page, stated plainly.
Read the fine print first
The homework behind the prepaid plan
Incentives, payback, and how prepaid compares with a PPA or cash — researched before you sign.
Honest payback math under NEM 3.0.
The neutral comparison of all three 2026 payment paths.
Capture the ~30% federal value while the window is open.
Get a free estimate for the no-credit-check prepaid plan — or compare it against a lease, loan, and cash side by side. A local advisor will give you the straight version, in writing, before you sign anything.
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