The solar industry is entering a cycle defined not by ownership, but by The Great Transition. Projects are shifting from planning to execution, and the market itself is pushing from ownership to leasing as the primary growth lever.
In both residential and commercial solar, short-term Third-Party Ownership (TPO) models, often called “prepaid leases,” are rewriting the playbook. Clients still want the advantages of the previous tax credits, they want predictable returns, and they want flexibility, and in some cases without a 25-year contract. What we’re seeing instead is a practical bridge: the five-to-ten-year term that balances control and convenience.
“At MAYO, we’re watching a quiet but powerful shift unfold: the smartest growth isn’t coming from ‘own more things,’ it’s coming from ‘control more outcomes.’ Leasing and TPO are exactly about that kind of control.” ~Carrie Mayo | Owner & Solar Industry Specialist | MAYO Web + Marketing
Residential: The “Prepaid Lease” Revolution
For many homeowners, the conversation is expanding from ‘Can I own my system?’ to ‘Can I make my power future‑proof without being tied down by long commitments?’
The prepaid lease model answers that question. In a third‑party owned structure, the provider can still access remaining commercial tax credits and other incentives, and then choose to reflect part of that value in the prepaid price or monthly rate. This keeps the homeowner’s commitment short while preserving many of the financial benefits of going solar, without a lifetime obligation.
Instead of asking prospects, “Are you looking to own or lease?” ask, “How much flexibility do you want over the next five to ten years?”
That single change moves the conversation from financing to future-proofing, and attracts homeowners who value optionality over ownership
Commercial: The July 4 Countdown
For commercial partners, the urgency is clear. To lock in the 30 percent Investment Tax Credit (ITC), they must begin “Physical Work of a Significant Nature” this quarter. That means visible progress in site preparation, procurement, and permitting before mid-year.
That is your opportunity. Businesses that delay their start risk losing a full percentage reduction in credit value. Pivot your outreach toward planning readiness. Show prospects that starting early is the smart financial move.
Think of Q1 not just as lead generation, but as project activation. Every conversation should create momentum.
Sales Enablement: From Incentive Selling to Long-Term Utility Rate Stability
The ITC will begin to phase out, but new opportunities will emerge. Energy volatility, already trending near five percent annual increases, is becoming the motivator that drives deals. When incentives fade, risk management becomes the central story.
“If you’ve always led with incentives, this shift can feel uncomfortable. But it’s actually a gift. It forces all of us to sell what truly endures: cost stability, risk reduction, and trust.” ~Barrie Hanlon | Brand Strategist | MAYO Web + Marketing
That’s where your message should evolve:
- From “Lock in today’s incentives” to “Lock in predictable energy costs for the next decade.”
- From “Maximize your tax credit” to “Reduce long-term exposure to utility rate volatility.”
- From “Save more upfront” to “Stabilize operating costs in an unpredictable market.”
One Final Thought
Before launching another campaign, take a moment to ask yourself: Are we presenting leasing as a product, or as a partnership?
Clients do not just want panels on their roofs. They want confidence in the people behind them. When we lead with clarity, care, and conviction, we turn transactions into trust and trust into growth.
That is the great transition worth making in 2026.
In this environment, the safest investment a client can make is in expertise, and that is where you lead. If 2025 was about chasing incentives, let 2026 be about building resilience… for your clients and for your business.” ~Carrie Mayo
