The Energy Show What's up with residential solar?
Mar 4, 2026
Sean Gallagher, Senior VP of Policy at SEIA and former California regulator, explains shifting market realities after federal tax credit changes. He covers evolving financing models like leases, PPAs and loans. State policy actions, permitting and interconnection streamlining, plug-in balcony solar safety, and how local solar+storage can serve data centers are highlighted in lively discussion.
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2025 Surge Then 2026 Slowdown
- Residential solar demand surged in 2025 due to the looming end of the 25D credit then flattened, and 2026 began slower with expected contraction.
- Sean Gallagher says 2025 ended roughly flat vs 2024 and growth should resume in two to three years as markets adjust to new financing and supply conditions.
Use TPOs Or Low Cost Loans To Recover Tax Benefits
- Use third-party ownership (leases, PPAs) or low-cost climate bank loans to restore tax-credit economics for homeowners now that 25D is gone.
- Leases are most common and widely available; prepaid PPAs mimic ownership but watch tax law pitfalls on prepaid leases.
Vet TPOs With A Specific Question Checklist
- Vet TPO partners thoroughly before contracting: ask about payment timing, FMV appraisals, business background, and working capital provisions.
- SIA's residential financing guide includes a checklist of specific questions installers should require from TPOs.