Third Party Ownership (TPO)
No credit check. No lien. No monthly payment.
A complete guide to the 2026 solar offer.
The new Path to Solar for 2026
If you've looked into solar recently, you might have heard that one of the biggest incentives has had some major changes. The federal tax credit for homeowners is no longer available, which leaves many people wondering if solar is still a good deal. Can you still get savings without worrying about tax liability or credit checks?
The short answer is yes. There's a new model called a Prepaid Power Purchase Agreement (Prepaid PPA) for solar — or a Prepaid Energy Storage Service for storage — which is designed specifically for this moment. This guide explains exactly how it works, what it means for you, and why it just might be the simplest path to solar in 2026.
What Is the Prepaid Power Purchase Agreement?
A Prepaid Power Purchase Agreement is exactly what it sounds like: you prepay for the electricity your solar system will generate over the next 20 years at a heavily discounted rate. Think of it like a season pass for your home's energy. You make one upfront payment, and in return, you get predictable, significantly lower-cost electricity for decades.
Here's what makes it different from the "old way" of going solar:
- You are not buying the equipment. A third party called a system owner owns the panels on your roof and/or your energy storage system.
- You are not leasing equipment. You aren't paying monthly for the panels themselves. In fact, there are no ongoing monthly payments associated with a Prepaid PPA.
- You are not financing a purchase. There's no loan, no interest, and no lien placed on your home.
How Is This Offer Possible?
While the federal tax credit for homeowners has been eliminated, the tax credit for commercial solar projects is still very much alive. By owning the system on your roof, the system owner treats your home as a small commercial project. They capture the tax benefits and pass those savings directly to you in the form of a much lower upfront price.
You get the savings. They get the tax credit. Everyone wins.
Why Homeowners Choose TPO
The Top 5 Benefits of Prepaid PPA
1. No Credit Check Required
Because you're pre-paying for energy, there's no monthly payment to verify. No FICO score minimum, no income verification. If you own the property, you qualify.
2. No Lien on Your Home
This is not a lien on your land or dwelling. The system owner simply files a UCC-1 confirming ownership of the system — not your home.
3. Immediate Savings from Day One
Your effective price per kWh is locked in from the moment the system turns on — substantially lower than what your utility charges. Savings start immediately.
4. More Control Over Your Energy
Generate your own power and become far less exposed to utility rate hikes. With an optional battery, store daytime energy for night use and keep the lights on during outages.
5. Seamless Transfer If You Move
The agreement transfers easily to the new homeowner — they accept the assignment (already prepaid) and pay a small administrative fee. It's a real selling point.
How the Prepaid Model Actually Works
Let's get specific about the mechanics of the prepaid PPA.
The Upfront Payment
You make a single payment for the energy the system will produce for you. This payment is typically structured over the installation milestones, meaning you pay in stages as the project progresses toward completion. Your final payment is due when installation of the system is finished. The discounted amount is then paid to Soleeva by the system owner, once all inspections are complete and the utility approves the system to be turned on.
The price is all-inclusive. There are no origination fees, no interconnection fees, and no processing charges. What you see is what you pay.
Can You Finance the Prepayment?
Yes, but it's important to understand the distinction. The Prepaid PPA itself is not financing of the system. However, you are welcome to work with a separate lender — such as your bank or a financing partner — to borrow the money for the prepayment if you prefer not to pay cash.
That loan is between you and your lender and has no connection to the solar agreement or the system ownership.
What About the Utility Company?
You remain connected to the grid. This is essential because your solar system doesn't produce power at night, and you may need extra power on cloudy days. Here's how the energy flows:
- Your solar system generates power during the day and your home uses that power first, automatically, just like pulling from the grid.
- If you generate more than you use, excess energy charges your battery. Before anything goes to the grid, your battery stores it for later.
- Once your battery is full, additional excess flows back to the grid and your utility credits you for that power under net metering.
- At night or when your system isn't producing, you draw from the battery first. Your home runs on stored energy until the battery reaches a preset threshold and only then do you pull from the grid.
- You pay the utility only for what you pull, minus any credits you've earned.
The flow without the backup battery is very similar. The only difference is that you just export and import more electricity to and from the grid. Either way, you'll still receive a utility bill, but it will be much smaller — up to 90% smaller in the case of solar systems with battery backup.
There is no second bill from the solar company because you've already prepaid.
Your Path to Ownership & End-of-Term Choices
One of the most common questions is whether you ever own the system. The short answer is yes, you have options to do that.
The 6-Year Buyout Option
Starting after your sixth anniversary with the system, and each year thereafter, you have the right to purchase it. The buyout price is based on fair market value at that time, which gives you the flexibility to decide whether you want to own the system outright or simply continue as is for a small annual maintenance fee — with the first 6 years of maintenance fees already included in your prepayment.
As a special benefit, Soleeva will agree to be responsible for paying the calculated fair market value at such time as you decide to take ownership.
End of Term — Year 20 for Solar, Year 10 for Storage
At the end of the full agreement term, you have two choices:
- Purchase the system at its then fair market value.
- Have the system removed at no cost to you.
How to Make the Right Choice
Is This Right for You?
The Prepaid PPA was designed to be the most optimal way to get into solar after the residential tax credit has been sunset. Here's a quick way to assess whether it's a good fit for your situation.
Could Be a Great Fit If…
You want predictable energy costs for the long term. - You prefer to avoid debt, liens, or monthly payments.
- You want solar savings but don't have the tax liability to benefit from the old credit.
- You may sell your home in the future and want a transferable solar solution.
May Not Be a Fit If…
Your roof is near the end of its life and needs replacement soon. It should be addressed before going solar (Soleeva can help). - You live in a condo or townhouse with restrictions that limit solar eligibility and/or third-party owned systems (though it's worth asking).
- You strongly prefer to own the panels from day one, even if it means a higher upfront cost.
Ready to Lock In Your Energy Rates?
The Prepaid PPA removes the barriers that kept many people on the sidelines. With utility rates heading only one direction (up!) now you have a new way to secure your home against that and lock in lower-cost electricity for decades.
Schedule a consultation to get a personalized quote, or plug numbers into our solar calculator to get a ballpark estimation within minutes.
- No obligation quote
- 15+ years experience
- Free site assessment
Quick Answers
Frequently Asked Questions
What happens if I sell my home?
Who maintains the system if something breaks?
The system owner is responsible for all maintenance, repairs, and monitoring throughout the term. If there's an issue, they handle it. You don't pay for service calls or replacement parts.
Does the price go up every year?
How do I add a battery?
What if my roof needs repairs?
Does this work with an HOA?
Have more questions? Talk to one of our experts