Buying vs. Leasing Solar in 2026: Which Is Right for Your Long Island, Brooklyn & Queens Home?

If you've started researching solar this year, you've probably noticed the conversation has shifted. For a long time, the advice was simple: if you can afford it, buy your system outright, claim the federal tax credit, and enjoy the biggest long-term savings. That's no longer the whole story.

Big changes to the federal solar tax credit in 2026 have made the "buy vs. lease" decision more important — and more confusing — than it used to be. As an independent solar consultant working with homeowners across Long Island, Brooklyn, and Queens, this is one of the most common questions we get right now. So let's walk through it honestly, without the sales pitch.

Why This Decision Looks Different in 2026

Through the end of 2025, homeowners who purchased a solar system outright (or financed it with a solar loan) could claim the federal Residential Clean Energy Credit, worth 30% of the system cost. That credit ended for systems installed after December 31, 2025.

Here's the part a lot of homeowners haven't heard yet: if you lease your system or sign a power purchase agreement (PPA), the company that owns the equipment can still claim a separate federal credit (Section 48E) through the end of 2027. That value doesn't go directly into your pocket the way the old credit did, but it's often reflected in a lower monthly lease payment or a lower rate per kilowatt-hour on your PPA. In other words, the incentive hasn't disappeared for everyone — it's just changed shape depending on how you finance your system.

That's exactly why we don't push one financing path over another. The right answer depends on your finances, your goals, and your home.

What Owning Your System Looks Like

When you buy a system (in cash or with a solar loan), you own the equipment outright. That generally means:

• You're eligible for New York State's 25% solar tax credit, capped at $5,000, which applies whether you purchase, lease, or use a PPA — but ownership is what lets you claim it on your own return.

• If your home is in Brooklyn or Queens, you may qualify for the NYC solar property tax abatement, which offsets roughly 30% of installation costs over four years — but this abatement is only available to homeowners who own their system, not to leased or PPA installations.

• You may be eligible for a NY-Sun incentive that reduces your upfront cost, depending on your utility territory and current program funding.

• Once the system is paid off, the electricity it produces is essentially yours at no ongoing cost beyond maintenance — the biggest long-term value driver of ownership.

• You take on more of the upfront cost and are responsible for maintenance and any roof-related coordination over time.

What Leasing or a PPA Looks Like

With a lease or PPA, a solar company owns the system and either charges you a fixed monthly lease payment or sells you the power it produces at an agreed rate, usually lower than your utility's price. Generally:

• Upfront costs are lower or nonexistent, which matters if cash flow is a priority.

• You typically won't qualify for the NYC property tax abatement, since you don't own the equipment — this is a meaningful trade-off for Brooklyn and Queens homeowners to weigh.

• The state's 25% tax credit still applies to leased and PPA systems, so that piece of the incentive picture doesn't disappear.

• Maintenance and equipment performance are usually the provider's responsibility, not yours.

• Long-term savings tend to be smaller than ownership, since part of the value goes to the company financing and maintaining the system.

• Selling your home can require extra steps to transfer or buy out the agreement, so it's worth understanding those terms before you sign anything.

Net Metering Works the Same Either Way

One piece of good news: how your utility credits the extra electricity your panels send back to the grid — through PSEG Long Island in Nassau and Suffolk, or Con Edison in Brooklyn and Queens — isn't affected by whether you own or lease your system. That part of the equation stays consistent regardless of financing choice.

There's No Single "Right" Answer

We've sat with homeowners for whom ownership was clearly the better fit, and others for whom a lease made far more sense given their timeline, budget, or plans to sell in a few years. The honest answer is that it depends on your specific numbers — your roof, your usage, your utility rates, and how long you plan to stay in your home.

That's the value of working with an independent consultant instead of a single installer's sales team. We're not tied to one company's financing product, so we can compare quotes and structures from multiple top-rated installers and help you see, side by side, what ownership versus leasing would actually mean for your household — with no pressure to pick one path over another.

Ready to Compare Your Options?

If you're a homeowner in Long Island, Brooklyn, or Queens trying to decide between buying and leasing solar, we're happy to walk through the numbers with you — no pressure, no obligation. Book a free consultation today, or call us directly at (631) 697-3006.

This article is provided for general informational purposes only and does not constitute tax, legal, or financial advice. Incentive programs, credit values, and eligibility rules can change, and individual circumstances vary. Please consult a qualified tax professional or financial advisor before making decisions based on available solar incentives.