Solar PPA/Lease vs Prepaid PPA Explained. They are not the same. Pros and Cons.

Julian Todd-Borden - Owner of TrustedSolarPros.com (760) 473-5878 [email protected] Website: TrustedSolarPros.com Reach out for a free consultation! Fill out JotForm Link below. I do NOT sell your information. https://form.jotform.com/230316991463155 Now that tax credit 25D, or the homeowner's tax credit has been deleted from existence, there's a creative way to still take advantage of the commercial tax credit 48E even for residential projects. This is with a PrePaid PPA which is really a disguised purchase. In this video I explain the difference between a normal 25 year PPA and a Prepaid PPA which the only similarity is that they both have "PPA" in the title. These are completely different products for different types of buyers. A Prepaid PPA is simply a structure where a commercial entity installs the system and holds the paper for 5-6 years so they can satisfy the IRS guidelines and take advantage of the tax credits and they pass on the majority of the credits back to the homeowner through a discount. In many ways this is superior to the 30% tax credit that disappeared at the end of 2025 because you don't have to wait until the next tax return or potentially wait several years to fully receive the full credit which was the reality for many who went solar before. You can either pay cash or even finance the prepaid PPA amount and I personally believe this is even better than before. A traditional PPA is simply swapping utility companies and making the solar company your primary utility company that provides you power for a cheaper cost per kWh than what you're paying the same power from your utility company. Both are good options but personally, I believe there are many less downfalls with a prepaid PPA and I believe this will be how the majority of people go solar in 2026-2027 before tax credit 48E goes away. After 2027, we will see what creative solutions the market can come up with. For now though, get your solar and take advantage of tax line 48E. Reach out for a free consultation! Fill out JotForm Link below. I do NOT sell your information. https://form.jotform.com/230316991463155