How Texas Homeowners Finance Solar
Residential solar installations can be financed through several mechanisms, each with distinct financial characteristics. Understanding the differences allows homeowners to select the option best aligned with their financial goals and circumstances.
Cash Purchase
A cash purchase involves paying the full system cost at the time of installation. This approach offers the most straightforward path to solar ownership and maximizes long-term financial return:
- Full system ownership from day one
- No interest expense over the system's life
- Maximum lifetime savings relative to total investment
- All applicable tax benefits and property value appreciation accrue to the homeowner
Cash purchase is well-suited to homeowners who have the available capital and wish to minimize total system cost over the 25-year period.
Solar Loan ($0 Down)
A solar loan provides full ownership of the system with no upfront payment required. This is the most common financing structure for Solergy installations:
- No capital outlay at closing
- Full system ownership — all incentives and tax benefits apply to the homeowner
- Monthly loan payments structured to be offset by electricity bill savings
- Loan terms of 10 to 30 years are available through our lending partners
- Property value increase and Texas property tax exemption apply as with a cash purchase
For homeowners who want the financial benefits of solar ownership without a large upfront commitment, a $0-down solar loan is typically the optimal structure.
Solar Lease and Power Purchase Agreements
Under a solar lease or power purchase agreement (PPA), the installation company retains ownership of the solar panels. The homeowner pays a fixed monthly amount for use of the system (lease) or for the electricity it generates (PPA). These structures have several important limitations:
- The homeowner does not own the system and receives no tax benefits
- The Texas property tax exemption applies only to owned systems
- Resale of the home is complicated by lease or PPA obligations that must be transferred or paid off
- Long-term savings are typically lower than under ownership structures
Solergy does not offer solar lease or PPA products. In the Texas market, ownership through purchase or financed acquisition consistently delivers superior financial outcomes.
Available Incentives
As of 2026, the primary financial incentives available to Texas homeowners are the permanent property tax exemption under Tax Code Section 11.27 and any active utility rebate programs offered by AEP Texas or Oncor. There is no federal solar tax credit currently available for residential installations. All incentives accrue exclusively to the system owner — reinforcing the financial case for purchase over lease.
Choosing the Right Structure
A Solergy consultant will review the financial characteristics of each option in the context of your specific situation, including a detailed projection of monthly costs, savings, and cumulative return over the system's life. This analysis provides the foundation for an informed financing decision.