Introduction
The Big Beautiful Bill (BBB) eliminates the residential solar tax credit after 2025 and suspends leasing incentives too. That changes everything homeowners need to weigh when choosing between leasing and buying solar. This guide breaks down the financial implications, detailed pros and cons, overlooked factors, and how to make a decision that lasts.
1. Updated Cost Landscape Post‑BBB
- Residential homeowners lose the 30% tax credit after December 31, 2025 Michigan Advance+15Kiplinger+15Tiger Solar+15SolarMichigan Advance+2GreenLancer+2Tiger Solar+2.
- Leasing companies also lose tax incentives after 2025, removing their main cost advantage .
- Commercial systems still qualify for credits if construction begins by mid‑2026 NerdWallet+8GreenLancer+8Crux Climate+8.
- Remaining credits for leases and PPAs last only until end of 2025, making 2026 purchases fully unsubsidized Reuters.
2. Buying Solar: Pros and Cons
Pros
- Full ownership and system control
- Access to the 30% credit before year-end, plus any local rebates
- Higher long-term savings—often $15,000‑$30,000 over 25 years YouTube+15Solcertain+15GreenLancer+15
- Increased home value, typically 4‑6% more Crux Climate+7Solcertain+7Tiger Solar+7
- Eligible for net metering credits on excess generation
Cons
- High upfront cost: $15,000‑$25,000 post-incentives, depending on system size
- Maintenance responsibility, including inverter replacement and panel cleaning
- Payback extensions, only if installed after BBB deadlines
3. Leasing or PPA: Pros and Cons
Pros
- Minimal or zero upfront cost Solar+6Palmetto+6Solcertain+6Kiplinger
- Maintenance is covered by the provider
- Locked rate structure may offer predictable savings through 2025
Cons
- Lack of equity and tax benefits—savings go to provider
- Lower overall savings, typically 10‑30% less than buying GreenLancer+4Planet Detroit+4BridgeDetroit+4Tiger Solar+5Palmetto+5Solcertain+5Solcertain
- Contract transfer issues during home sale
- Escalating payments if not a fixed-rate plan
4. Big Beautiful Bill Impacts: What You Must Know
4.1 Narrow Installation Window
Systems must be installed, commissioned, and operational by December 31, 2025 to qualify for any credit GreenLancer+1Wipfli+1. Delays push homeowners into an unsubsidized 2026 market.
4.2 Leasing Incentives End
BBB ends the 30% lease credit as well, reducing leasing appeal. Some providers may still accept 2025 contracts for installation before the deadline .
4.3 Rising Equipment Costs
Proposed tariffs on imported panels could raise system costs by mid‑2026, eroding unsubsidized savings Kiplinger.
4.4 State and Local Incentives Remain
Michigan incentives, such as property tax exemptions, are unaffected. They may partially offset lost federal credits .
5. Overlooked and Often Missed Considerations
- Homeownership horizon matters—if you move before year 10, leasing might make sense.
- Tax liability check—you may not benefit from buying if your tax burden is low.
- Escalation clauses—always choose fixed over escalating lease payments.
- Maintenance depth—roof integrity, shading, or snow removal may be homeowner’s responsibility even in leases.
- Sale and resale timing—transferring a lease can complicate real estate transactions.
- Battery compatibility—bought systems support add-on storage easily, leased ones may not.
- Tariff risk—import restrictions might raise costs for both leased and bought systems.
6. When Leasing Makes Sense
- You expect to move in under 10 years and prefer no upfront cost
- You lack tax liability to benefit from ITC
- You want simple installation and support pre‑BBB deadlines
7. When Buying Makes Sense
- You plan to stay in your home 10+ years
- You want maximum savings and own equity in the system
- You qualify for tax credits and want to install before December 2025
- You may add batteries or roof-integrated systems later
8. Decision Flow: How to Choose
- Can you install by Dec 31, 2025?
- Yes: Buying is financially superior.
- No: Evaluate leasing to capture remaining credits until year-end.
- Do you have tax liability?
- Yes: Go for buying.
- No: Leasing could be better through 2025.
- Do you plan to stay long-term?
- Yes: Buying gives equity and savings growth.
- No: Leasing offers flexibility.
- Will you add batteries later?
- Yes: Owning provides easier integration.
- No: Leasing is still viable.
9. Final Recommendation
Buying is the ideal path for Michigan homeowners in 2025. It maximizes financial returns, maintains home equity, and allows future upgrades. Lease if you have reasons like limited tax liability, short tenure, or a preference for simplicity.
Time is critical. Systems must be commissioned before the end of 2025 to gain any federal benefit. Michigan Solar Partners can help you navigate contracts, financing, and installation timing.
References
- Kiplinger: homeowners rushing for solar credit before BBB ends GreenLancer+4Solcertain+4Tiger Solar+4SolarPalmettoPalmetto+3Michigan Advance+3Solar+3A1 SolarStore+1Solcertain+1Reuters+1Womble Bond Dickinson+1GreenLancerSolcertain+3Kiplinger+3GreenLancer+3
- Michigan Advance: loss of lease incentives post‑BBB Michigan Advance
- Solar.com: post‑BBB guidance on leasing through 2025 Solar
- GreenLancer: BBB residential credit end Michigan Advance+4GreenLancer+4NerdWallet+4
- NPR/Tariffs effect on solar pricing
- MIS0 & Michigan incentives unaffected
- Palmetto/A1 SolarStore: standard pros and cons Womble Bond Dickinson+3Palmetto+3A1 SolarStore+3
