What Is the Participate Energy Pre-Paid Lease?
The residential solar tax credit has expired. Here's how Long Island homeowners can still lower their solar investment by up to 35%, right upfront.
By Steve Maroney, founder of Power House Home Energy · Updated October 2026
The Participate Energy Pre-Paid Lease is an incentive that lowers your investment in solar by 25–35%, right upfront. Participate owns the system commercially and claims the federal commercial energy credit (Sec. 48E), then passes that value to you. You pre-pay the reduced amount once, or finance it with a partnered solar loan, with $0 monthly lease payments and 25 years of service covered. After year 6, you choose: keep the lease, buy it out at a fair-market price that can be as low as $0, or transfer it when you sell your home.
Solar savings, bigger than ever.
The residential solar tax credit has expired, but Participate's incentive lowers your investment by up to 35% right upfront. That's more than the old 30% credit, with no tax liability needed and no waiting on a refund.
How the Pre-Paid Lease creates your “Synthetic Cash” price
Commercial ownership
Participate holds the system commercially, so it can claim the federal commercial energy credit (Sec. 48E).
Credit passed to you
That value comes off the top as an incentive that lowers your investment 25–35%.
You pre-pay once
Pay the reduced amount upfront, or finance it with a partnered solar loan. 25 years of service, covered.
Year 6 isn't a cliff. It's a choice.
After the 6th anniversary, you pick the path.
Keep the lease
The default. Nothing changes: $0 monthly payments, with monitoring and maintenance still included.
Buy it out
Optional, never required. A fair-market quote that credits what you pre-paid, as low as $0.
Sell your home
The agreement transfers to your buyer, along with the remaining pre-paid service.
If you choose to buy: how the price is calculated
Fair Market Value
Independent appraisal of the equipment by age and condition. Value drops significantly by year 6.
Remaining Value Credits
The pre-paid energy and service Participate no longer has to deliver once you own it.
Buyout Price
Contractually never below $0. If your credits outweigh the hardware, ownership costs nothing.
Ownership transfers at no cost.
Buy it, dispute it, or keep leasing.
Bars are illustrative, not actual values.
“Why not just promise me $0 in writing?”
The IRS requires a market-based buyout formula. Guaranteeing $0 on day one could void the credit that funds your 25–35% upfront incentive.
You can't be locked into a bad deal.
Who it's a good fit for
How it compares
Participate is one of up to 13 ways we can help you pay for solar, alongside cash, solar loans and monthly leases. See all four options side by side, or see what it means for your numbers on our cost page, where every example assumes a 35% Participate incentive.
Terms and eligibility are set by Participate Energy and shown in your agreement before you sign. Ask your tax preparer about your New York tax credit.
Common questions
What is the Participate Energy Pre-Paid Lease?
An incentive that lowers your solar investment by 25–35%. Participate owns the system commercially, claims the federal commercial energy credit (Sec. 48E), and passes that value to you. You pre-pay the reduced amount once, with $0 monthly lease payments and 25 years of service covered.
Is Participate better than the old 30% federal tax credit?
The incentive lowers your investment by up to 35% right upfront, more than the old 30% credit, with no tax liability needed and no waiting on a refund.
What happens at year 6?
After the 6th anniversary you choose: keep the lease (the default, with $0 monthly payments and maintenance included), buy it out at a fair-market quote that credits what you pre-paid, or transfer the agreement when you sell your home.
How is the buyout price calculated?
Fair market value of the equipment, minus the remaining value credits for the pre-paid energy and service Participate no longer has to deliver. The buyout price is contractually never below $0, and if you disagree you can get an independent appraisal at their cost.
Why isn't a $0 buyout guaranteed in writing?
The IRS requires a market-based buyout formula. Guaranteeing $0 on day one could void the credit that funds the 25–35% upfront incentive.
Can I finance the pre-payment?
Yes. You can pay the reduced amount upfront or finance it with a partnered solar loan.