Los Angeles homeowners can pay for solar in three main ways in 2026: cash, a $0 down solar loan, or a lease or PPA. Since the federal residential tax credit ended on December 31, 2025, buying a system no longer comes with a federal credit, and the best choice now depends mostly on your utility (LADWP or SCE), how long you will stay in your home, and how much you value owning the system.
Quick answer
- Cash: usually the lowest 25-year cost if you have the capital and plan to stay
- $0 down loan: ownership without upfront cost, best when you check for dealer fees
- Lease or PPA: $0 down with maintenance included, but typically the highest long-term cost
- LADWP homes: ownership tends to win because exported power earns near-retail credits
- SCE homes: the comparison is closer, and a battery usually belongs in the plan
Solar Financing in Los Angeles at a Glance
| Option | Upfront cost | Who owns the system | Federal credit in 2026 | Best for |
|---|---|---|---|---|
| Cash purchase | Full system price | You | None for purchased systems | Lowest lifetime cost, staying 10+ years |
| Solar loan (EnFin) | $0 at signing | You | None for purchased systems | Ownership without a large cash outlay |
| Lease or PPA | $0 down | The provider | Claimed by the provider and partly passed through | No maintenance, lower monthly payment, shorter stay |
This guide focuses on Los Angeles utilities and Qcells proposals. For the full statewide menu, including PACE and HELOC options, see our guide to solar financing options in California.
What Changed for Solar Financing in 2026
The Federal Tax Credit Now Works Differently
Before 2026, a 30% federal credit made buying almost always better than leasing. That residential credit ended for systems placed in service after December 31, 2025, so cash and loan buyers now pay the full system cost with no federal offset. Lease and PPA providers still own their systems commercially and can claim a separate credit, generally for systems that meet certain timing rules, then pass part of that value to you as a lower monthly rate. For the full breakdown of who keeps which incentive, read how to pay for solar and who keeps the tax incentives.
- Cash and loan buyers: no federal credit in 2026
- Lease and PPA customers: benefit indirectly through the provider’s pricing
- Result: leases are more competitive than in 2024, though not automatically cheaper over 25 years
The California Property Tax Exclusion Has a Deadline
California currently excludes qualifying new solar from property tax reassessment, which is often estimated to save owners several hundred dollars a year. That exclusion is scheduled to end for systems completed after January 1, 2027, which gives owners a reason to move sooner rather than later. Ask your consultant how it applies to your specific contract.
Your Utility Changes the Math: LADWP vs SCE
Los Angeles homes are served by two very different utilities, and the difference affects which financing path wins.
| Factor | LADWP (City of Los Angeles) | SCE (parts of the Valley, East LA, South LA) |
|---|---|---|
| Export credit rules | Near-retail net metering, outside NEM 3.0 | Net billing tariff under NEM 3.0, with exports credited far below retail |
| Does solar-only work? | Often yes | Usually works best with a battery |
| Ownership vs lease | Ownership usually pulls ahead | Closer comparison, so price both |
| Battery incentives | LADWP programs may apply | SGIP incentives may apply, subject to budget and eligibility |
Your proposal should state which rate schedule it used. If it does not, ask before comparing financing. For SCE homes, read how net metering works under NEM 3.0 and see whether a home battery makes sense. Homes served by municipal utilities such as Pasadena have their own rules, covered in our Pasadena solar rebate guide.
Option 1: Paying Cash for Solar in Los Angeles
Paying cash gives you full ownership on day one, no interest, no monthly payment, and the simplest situation when you sell your home.
What Cash Looks Like on a Proposal
- The cash price is the baseline that every other option is built from
- For a typical 10 kW system, factory-direct cash pricing has ranged from about $19,200 to $27,000 depending on configuration, roof complexity, and battery storage
- For current local pricing details, see our Los Angeles solar cost guide
- Estimated payback runs roughly 7 to 10 years for LADWP homes and 9 to 12 years for SCE solar-plus-battery systems
When Cash Makes Sense
- You have capital you are not using elsewhere
- You plan to stay in the home 10 to 15 years or longer
- You want no financing company in the relationship
Option 2: $0 Down Solar Loan
A solar loan lets you own the system without paying upfront. Your first payment typically arrives about 30 days after Permission to Operate, so the system is already producing before payments begin.
How EnFin Solar Loans Work
| Feature | What our proposals show |
|---|---|
| Down payment | $0 at signing |
| Loan terms | 10 to 25 years |
| Minimum credit score | 600, with other financial factors considered |
| Pre-qualification | Soft credit pull that does not affect your score |
| First payment | About 30 days after Permission to Operate |
| Security | The solar system is secured through a UCC-1 filing, not a lien on your home |
| Warranty perk | Financing a qualifying Qcells install through EnFin extends the performance warranty from 25 to 30 years |
Terms come from current Axia by Qcells proposals. Confirm the figures on your own quote.
Sample Monthly Payments by Loan Term
This illustration shows how loan length changes your payment and total interest. It uses a $24,000 loan at an assumed 7.99% APR and is not an EnFin offer. Your actual rate and payment will differ.
| Loan term | Monthly payment | Total interest paid |
|---|---|---|
| 10 years | About $291 | About $10,900 |
| 15 years | About $229 | About $17,300 |
| 20 years | About $201 | About $24,100 |
| 25 years | About $185 | About $31,500 |
Longer terms lower the payment but raise total interest. Compare each payment with your current utility bill, and ask for the 15- and 20-year options side by side.
Dealer Fees: The Number to Check Before You Sign
Some loans advertise a low rate but build a dealer fee into the financed amount. The simple test is to compare two numbers:
- The cash price in writing
- The total financed amount
If the financed amount is more than a few percent above the cash price, the gap is a fee that accrues interest for the entire loan. Our California financing guide explains how to compare loan offers in more detail.
When a Solar Loan Makes Sense
- You want ownership but not a large upfront payment
- Your monthly payment can land at or below your current bill
- You plan to stay long enough to pass payback
Option 3: Solar Lease or PPA
With a lease or PPA, the provider installs and owns the system, handles maintenance and monitoring, and you pay a monthly rate. A lease charges a fixed payment, while a PPA charges per kilowatt-hour produced. For the mechanics of each, read our PPA guide to no money down solar.
Why Leases Got More Competitive in 2026
Because the provider owns the system, it can claim a federal credit that purchased systems no longer receive, and it passes part of that value through as a lower rate. That is why a lease payment can sit below a loan payment on the same system, especially for SCE homes where batteries add cost.
What You Give Up With a Lease
- Ownership: the system is not yours, and owned systems generally support resale value better than leased ones
- Long-term savings: you keep paying for the full contract term, usually 20 to 25 years
- Escalators: many contracts raise the rate 1% to 3% each year
- Selling your home: the buyer must assume the lease, or you pay a buyout, so read how solar affects selling your house
How an Escalator Grows Over Time
This example assumes a lease starting at $0.20 per kWh with a 2.5% annual escalator.
| Year | Rate per kWh |
|---|---|
| Year 1 | $0.20 |
| Year 5 | $0.22 |
| Year 10 | $0.25 |
| Year 15 | $0.28 |
| Year 20 | $0.32 |
| Year 25 | $0.36 |
Whether that is acceptable depends on how fast LADWP or SCE rates rise over the same period. Ask for a flat-rate or low-escalator option, and get buyout terms in writing. Our solar contract questions guide lists what to look for.
When a Lease or PPA Makes Sense
- You want $0 down and no maintenance responsibility
- You expect to move within about 5 to 7 years
- You do not qualify for a solar loan at acceptable terms
- You are on an SCE plan where battery costs make the comparison close
Which Solar Financing Option Fits Your Situation?
| Your situation | Option to price first | Why |
|---|---|---|
| LADWP, staying 10+ years, have capital | Cash | Lowest lifetime cost with near-retail export credits |
| LADWP, staying 8+ years, little upfront cash | Solar loan | Ownership and full production value after payoff |
| SCE with a battery, staying 10+ years | Cash or loan, then compare a lease | The lease gap is narrower under NEM 3.0 |
| Moving within 5 to 7 years | Lease or PPA | Avoids a loan payoff or transfer at sale |
| Want zero maintenance responsibility | Lease or PPA | Provider handles service and monitoring |
| Credit below typical loan thresholds | Lease or PPA | Often easier to qualify |
Looking for $0 Down Solar in Los Angeles or Irvine?
“No upfront cost” solar usually means one of two paths, and they are very different financially:
- A $0 down loan: you own the system and make monthly payments
- A lease or PPA: the provider owns the system, and you pay a monthly rate
What About Irvine and Orange County?
Irvine and most of Orange County are served by SCE, so the SCE column in the utility table above is the one that applies to you. That means export credits follow the net billing rules, and a battery is usually part of the plan. The same three options (cash, $0 down loan, lease, or PPA) exist there, and the same checks apply. Ask a consultant to confirm service availability for your address, and request all three options side by side.
What to Look for on Your Solar Proposal
A complete proposal should show every option on one page. If you have not requested one yet, start with our free Qcells solar quote guide for Los Angeles.
| Column | What to check |
|---|---|
| Cash | Total price, utility rate schedule used, payback period, 25-year savings |
| Loan | Payment by term, first payment date, total interest, and a financed amount close to the cash price |
| Lease or PPA | Monthly rate, contract length, escalator percentage, buyout terms, who handles maintenance |
For more to ask before you sign, use our list of questions to ask before requesting a solar quote.
How Factory-Direct Pricing Affects Every Option
The financing structure decides how you pay, while the system price decides what you are paying for. US Power’s factory-direct Axia by Qcells pricing is positioned as 15% to 20% below standard distributor channels, and that lower base price flows through every path:
- Cash: less out-of-pocket
- Loan: a smaller balance, so a lower payment and less interest
- Lease or PPA: a lower provider cost basis, which can mean a lower rate
Learn more in our explainer on how factory-direct solar pricing works.
What Happens After You Choose a Financing Path
The installation steps are the same; however, you pay for permitting, utility interconnection, installation, inspection, and Permission to Operate. See our Los Angeles installation guide for local details and how long going solar takes for the full timeline. Loan customers make a first payment about 30 days after Permission to Operate, lease customers typically start paying at activation, and cash customers have no further payment.
Choosing the Right Solar Financing Path
There is no single best answer for every Los Angeles home. Start with your utility, decide how long you will stay, and price all three options on the same proposal. With the California property tax exclusion scheduled to end for systems completed after January 1, 2027, it helps to start early. Request your free solar quote to see cash, loan, and lease numbers side by side for your home.
Frequently Asked Questions About Solar Financing in Los Angeles
What is the best way to finance solar in Los Angeles in 2026?
Cash usually has the lowest 25-year cost, and a $0 down loan gives you ownership without upfront payment. A lease or PPA suits homeowners who want no maintenance or plan to move soon. LADWP customers tend to benefit most from ownership, while SCE customers should price a lease alongside a loan.
Which solar company offers the best no upfront cost option in Los Angeles or Irvine?
No single company is best for everyone, because the right no upfront cost option depends on your utility, credit, and plans. Ask any company for a $0 down loan and a lease or PPA side by side, and compare the cash price against the financed amount. Axia by Qcells through US Power offers an EnFin $0 down loan and lease or PPA options so you can compare both.
Can I go solar in Los Angeles with $0 down?
Yes. A solar loan with no down payment lets you own the system, and a lease or PPA lets a provider own it while you pay a monthly rate. Both can start with nothing due at signing.
Is a solar loan or lease better in 2026?
A loan usually wins on total cost and resale value if you avoid dealer fees and stay in the home long enough to pass payback. A lease can win on monthly cash flow and simplicity, especially for shorter stays. Price both on the same system before deciding.
Is there still a federal tax credit for solar in 2026?
Not for systems you buy with cash or a loan, because the residential credit ended after December 31, 2025. Third-party-owned systems can still carry a commercial credit claimed by the provider, which may be reflected in a lower lease or PPA rate.
Does LADWP or SCE change which financing option is best?
Yes. LADWP customers receive near-retail export credits, which favors ownership. SCE customers fall under NEM 3.0, where exports earn much less, and batteries matter more, so a lease is a closer competitor.
What credit score do I need for a solar loan?
Our EnFin loan option lists a minimum score of 600, and other financial factors are also considered. Pre-qualification uses a soft credit pull that does not affect your score. Confirm current requirements on your proposal.
Does a solar lease affect selling my home?
It can add steps. The buyer must agree to assume the lease, or you pay a buyout under the contract schedule. An owned system with no lease transfers more simply, so review the buyout terms before you sign.