Big Changes Are Coming to Solar Financing in San Diego in 2026

Hi, I’m Dustin Merkley, I’m the head of MyZeroHome.com. If you’re planning to get solar financing in San Diego, the next 12 months might be the best window you’ll have for a while.

Starting in 2026, major changes are coming to the way residential solar is financed, especially for people who want to own their system. From tax credit rules to utility rate reform, here’s what you need to know.

1. Buying Solar in San Deigo Will Get More Expensive After 2025

Right now, homeowners who buy their solar system (with cash or a loan) can claim a 30% federal tax credit. That’s a huge incentive – it can knock $8,000 to $10,000 or more off the price of a full solar + battery setup.

But that credit goes away for homeowners after December 31, 2025. You can’t just pay in advance: the system has to be fully installed and active by the end of the year. After that, you’ll still be able to get solar, but it’ll cost more out of pocket, and your monthly payments may be higher. Source.

2. Leases and PPAs Will Likely Take Over

Since homeowners will lose access to the credit, the tax benefit will shift to third-party ownership – companies that own the system and lease it to you or sell you power through a Power Purchase Agreement (PPA). These companies can still claim the business tax credits and may pass on some of those savings in their pricing.

So, starting in 2026, expect to see more solar options that feel like subscriptions – with different buyout terms, escalators, and bundled services like maintenance and monitoring.

3. New Lease-to-Own Models Are on the Rise

To help bridge the gap between ownership and leasing, we’re seeing more creative finance products: prepaid PPAs, deferred ownership, and early buyout options. These deals try to give you the feel of ownership while still using structures that qualify for commercial incentives.

4. Batteries Are No Longer Optional, and They’ll Be Financed Differently

With California’s NEM 3.0 rules in effect, solar-only systems are becoming rare. Batteries help you use more of your solar power instead of selling it back to the grid at a low rate. Financing is adapting: expect to see bundled solar + battery loans, battery leases, and packages that include warranties, monitoring software, and installation support. Source.

5. Virtual Power Plants Might Help Pay for Your System

Some financing options now include projected revenue from virtual power plants — programs where your home battery gets used to support the grid, and you get paid for it. It’s not mainstream yet, but in 2026, more leases and PPAs may offer shared savings models based on this future income stream.

6. Utility Rates Are Changing in 2026

California utilities are changing how they bill you. Instead of charging mostly per kilowatt-hour, they’re adding flat monthly fees (like a base service charge) and lowering usage rates. This changes how lenders calculate your savings from solar.

Result: expect more conservative projections, and possibly new rules about guaranteed savings language in contracts. Source.

7. Solar Loans Will Be Scrutinized More Closely

For years, many solar loans had low APRs but high dealer fees — hidden costs built into the total price. In 2026, regulators are pushing for more transparency, and buyers will be encouraged to look at APR versus true cost. You’ll likely see more honest disclosures, and a shift toward higher APRs with lower fees that are easier to compare.

8. Lenders Will Require More Paperwork on Savings

California already requires a Solar Energy System Disclosure Document. Now lenders and lease providers are moving toward more standardized, documented savings projections, using time-of-use data and interval billing models. That means fewer inflated promises and more consistent expectations.

9. Leases Will Come With More Compliance Rules

Because the solar provider owns the system under TPO, they’re now on the hook for federal business tax credits. That means more diligence on equipment sourcing, installation timelines, and contract structure. Some providers may even build in price buffers to account for risk.

So What Should You Do If You’re in San Diego?

If you’re considering solar in 2026, the advice is simple:

→ Consider pairing your system with a battery to protect value under NEM 3.0.

→ Ask about all the financing options — loans, leases, and new hybrid models — and don’t just look at APRs.

At MyZeroHome, we’re staying ahead of the changes so you don’t have to. We’ll walk you through every option, explain the trade-offs, and help you choose the system that makes the most financial sense for your home. Use our simple wizard to get your quick quote today.