How to Pay for Solar on Long Island: Cash, Loan, Lease or Participate
With the federal credit gone for homeowners, how you pay for solar matters more than ever. Here's how the options compare.
By Steve Maroney, founder of Power House Home Energy · Updated October 2026
Long Island homeowners pay for solar in four main ways: cash, a solar loan, our Participate Energy Pre-Paid Lease, or a monthly lease. Cash and loans give you ownership from day one. Participate is an incentive that lowers your investment by 25–35%, with a six-year path to ownership. A monthly lease needs the least upfront. All of them can be eligible for New York's 25% solar tax credit (up to $5,000). We offer up to 13 financing paths and walk you through them side by side.
The four options at a glance
| Cash | Solar loan | Participate Pre-Paid Lease | Monthly lease | |
|---|---|---|---|---|
| You own it | From day one | From day one | After six years | No (service included) |
| Upfront | Full cost | Little or nothing | Reduced by 25–35% | Little or nothing |
| Ongoing payment | None | Loan payment | None | Monthly lease payment |
| NY 25% tax credit | Eligible | Eligible | Eligible | Based on total lease payments |
| Best for | Maximum long-term savings | Ownership without paying upfront | Lowering your investment without monthly payments | Lowest upfront commitment |
Cash
Paying cash gives you the largest long-term savings: no interest, no lease, and every kilowatt-hour your panels produce is yours. You can claim New York's 25% solar tax credit (up to $5,000), pay no sales tax, and in most municipalities the added home value is exempt from property tax for 15 years.
Solar loan
A loan lets you own the system from day one without paying for it upfront. For many homeowners, the monthly loan payment is lower than the PSEG bill it replaces. We work with lenders including Sungage, Sunrise, Atmos Financial and West One, and terms depend on credit approval.
“I didn't pay $1 out of my pocket and the financial process was very affordable (less than my utility bills).”
Chris · Smithtown, NY · Google reviewParticipate Energy Pre-Paid Lease
Participate is our own program, built to fill the gap left when the federal credit expired. It's an incentive that lowers your investment by 25–35%, with no ongoing lease payments, immediate savings on your electric bill, and a six-year path to ownership. It's also eligible for New York's 25% solar tax credit. How Participate works →
Monthly lease
A monthly lease, offered through partners such as LightReach, needs the lowest upfront commitment and includes equipment service and warranty. You trade some long-term savings for simplicity. The New York tax credit is based on the total of your annual lease payments.
Which is right for you?
It depends on what matters most to you: the lowest monthly cost, the fastest payback or the most long-term value. We'll model each option with your actual PSEG bill and show you the numbers side by side, and the equipment, installer and warranty stay the same whichever way you pay.
Common questions
Is the federal solar tax credit still available?
Not for homeowner-owned systems. The 30% federal credit expired at the end of 2025. New York's 25% solar tax credit (up to $5,000) still applies, and our Participate Energy program lowers your investment by 25–35%.
Can I go solar with nothing out of pocket?
Often, yes. Many of our loan and lease options require little or nothing upfront, depending on credit approval, and the monthly payment is often lower than the PSEG bill it replaces.
What is Participate Energy?
Participate Energy is our pre-paid lease program: an incentive that lowers your investment by 25–35%, with no ongoing lease payments and a six-year path to ownership. It's eligible for New York's 25% solar tax credit.
How many financing options do you offer?
Up to 13 financing paths through cash, solar loans, our Participate Energy program and monthly leases. We compare the ones that fit your home and goals side by side.