{"id":18644,"date":"2026-05-29T18:39:36","date_gmt":"2026-05-29T18:39:36","guid":{"rendered":"https:\/\/aurorasolar.com\/?p=18644"},"modified":"2026-06-01T18:55:11","modified_gmt":"2026-06-01T18:55:11","slug":"tpo-solar-financing-trends-2026","status":"publish","type":"post","link":"https:\/\/aurorasolar.com\/tpo-solar-financing-trends-2026\/","title":{"rendered":"Solar financing in 2026: more options, more closes"},"content":{"rendered":"\n

The financing landscape for residential solar has changed more in the past 18 months than in the previous five years combined. The expiration of the residential federal Investment Tax Credit at the end of 2025 removed one of the most powerful closing tools salespeople had. Loan rates stayed elevated. And homeowners \u2014 more cost-conscious than ever \u2014 started asking harder questions about what solar actually costs them month to month.<\/p>\n\n\n\n

Into that environment, third-party ownership (TPO) products \u2014 leases and PPAs (power-purchase agreements) \u2014 came back in a major way. And the data from the 2026 Aurora Solar Snapshot <\/a>makes the trend impossible to ignore.<\/p>\n\n\n\n

The TPO acceleration<\/strong><\/h2>\n\n\n\n

In 2025, 44% of salespeople reported that more than half of their projects used TPO<\/strong>. For 2026, that number is expected to jump to 65%<\/strong>. Meanwhile, the share of salespeople not selling any TPO drops from 9% to just 1%.<\/p>\n\n\n\n

That’s not a gradual evolution. That’s a structural shift. TPO isn’t a niche product for homeowners who can’t qualify for a loan anymore. It’s increasingly the default offer \u2014 especially in markets where the federal tax credit no longer makes the cash or loan math pencil out as cleanly.<\/p>\n\n\n\n

The picture gets more nuanced when you look at specific markets. In New Jersey, 72% of solar projects used TPO in 2025. Connecticut was at 69%. Florida at 65%. Massachusetts at 65%. In California \u2014 still the largest solar market in the country \u2014 54% of projects used TPO, with the post-NEM 3.0 environment making the bill savings pitch more complex and the monthly payment story more relevant.<\/p>\n\n\n\n

\ud83d\udca1 Best-in-class financing integrations \u2013<\/em><\/strong> Aurora’s Sales Mode includes direct integrations with leading TPO and loan providers \u2014 including GoodLeap, LightReach, EnFin, Sungage, and Dividend \u2014 so reps can present accurate, lender-ready financing options without leaving the proposal. <\/em>Learn more about integrated financing<\/em><\/a>.<\/em><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

What homeowners actually care about<\/strong><\/h2>\n\n\n\n

When salespeople were asked what homeowners prioritize most when choosing a financing option, monthly payment amount was the top answer \u2014 by a wide margin, at 82%<\/strong>. Overall savings came second at 49%. Interest rate third at 27%.<\/p>\n\n\n\n

This ordering matters. It tells you something important about how homeowners are thinking about solar right now: not as a long-term ROI calculation with a payback period, but as a monthly cash flow decision. Can I afford this on my budget? Does this reduce my bill? Is the number I’m signing up for something I can live with?<\/p>\n\n\n\n

TPO products are built for exactly that framing. There’s no large upfront financing event. No loan rate that has to compete against a mortgage. The pitch is simple: here’s what your bill looks like today, here’s what it looks like with solar, here’s the difference. For a lot of homeowners, that’s the conversation they want to have.<\/p>\n\n\n\n

Multiple options aren’t a luxury \u2014 they’re a requirement<\/strong><\/h2>\n\n\n\n

63% of salespeople now offer cash, loans, and TPO together.<\/strong> That’s significant. The days of a single-financing-option sales team are largely over \u2014 not because every company decided to expand, but because market pressure demanded it.<\/p>\n\n\n\n

The homeowners walking into solar conversations in 2026 are more diverse in their financial situations and preferences than they were three years ago. Some want to own the system outright. Some want the lowest possible payment. Some are interested in prepaid PPAs \u2014 which lock in long-term savings without an ongoing monthly commitment. That product is growing, too: 45% of salespeople now offer prepaid TPO, and 11% say it’s the most popular financing option among their homeowners<\/strong>.<\/p>\n\n\n\n

60% of salespeople plan to add additional TPO products in 2026<\/strong>. The direction is clear.<\/p>\n\n\n\n

\ud83d\udca1 New: Model prepaid leases and PPAs in Aurora <\/em><\/strong>\u2014 You can now model prepaid TPO financing directly in Aurora’s custom financing tools, so sellers can present prepaid lease and PPA options alongside your existing products. <\/em>Learn more here<\/em><\/a>.<\/em><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

The confidence gap<\/strong><\/h2>\n\n\n\n

Here’s the challenge that often gets overlooked in discussions about financing flexibility: offering multiple options is only valuable if your team can explain them clearly. A rep who can present three financing options but fumbles when a homeowner asks about the difference between a PPA and a prepaid lease has created more confusion than value.<\/p>\n\n\n\n

26% of salespeople said financing options was one of the topics they most wish they had more training on.<\/strong> That number should be a flag for sales managers. A well-trained rep who can walk a homeowner through financing trade-offs in plain language \u2014 monthly payment vs. ownership, escalator loan vs. flat payment, lease vs. prepaid \u2014 is a meaningful competitive differentiator right now.<\/p>\n\n\n\n

The market has moved toward flexibility. Can your team deliver it?<\/p>\n\n\n\n

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This is the third article in Aurora’s 2026 Solar Snapshot series. You<\/em> can see the previous two posts here:<\/em><\/p>\n\n\n\n