All Articles There are four primary ways to pay for solar today
Two of them mean you own the system. Two mean a company owns it and you benefit from the power it makes.
What changed on January 1, 2026
For nearly 20 years, a homeowner who bought solar with cash or a loan could claim a federal tax credit worth 30% of the system cost. Legislation passed in July 2025 ended that credit for systems installed after December 31, 2025. A separate version, written for businesses that own solar systems, is still in effect. That is why the options where a company owns the system now matter to buyers who never considered them.
This is educational information, not tax advice. Tax situations vary and rules change. Confirm anything here with a qualified tax professional before you decide.
Meet Balto PATH: a prepaid lease built differently
Most solar leases run 20 to 25 years with payments that climb each year. Balto PATH keeps the part that matters in 2026, the federal credit, and drops the rest.
Why five years and not twenty-five? It is not arbitrary. To claim the federal credit that funds your discount, the IRS requires the system to stay in service for five years. That requirement is also why PATH is a lease rather than a sale.
Northern Pacific Power and Balto Energy developed this prepaid lease together, and we were Balto’s first deployment partner at launch. As PATH reaches more installers, that history matters: we know the product at the design level, not the brochure level. Balto adds what most lessors do not: whole-home energy modeling and ongoing coaching, so your system is sized for where your home is headed (batteries, an EV, electric appliances), not just for today. And we will still put your PATH price next to a cash quote and walk the agreement with you line by line.
How Balto PATH compares
No option is right for everyone. Here is the honest picture.
The bottom line: Balto PATH is the only 2026 option that captures the federal credit and ends in five years.
Six questions to ask any provider, and our answers
We publish this list on every guide we write. A provider with a good product should have clear answers to all six. Here are ours.
1. How long is the term? Prepaid does not always mean short; some prepaid products still run 25 years.
PATH’s answer: five years, in writing.
2. Who owns my system, and who holds my contract? Many installers sell your contract to a national finance company you will never meet.
PATH’s answer: Balto Energy holds the lease, and we install and service the system. You will know who holds your contract and who to call before you sign.
3. What happens if I sell my home? Long leases can add steps and uncertainty to a closing.
PATH’s answer: we walk you through the transfer and resolution options before you sign.
4. Is there a purchase option, and how is the price set? This question separates good prepaid products from marketing.
PATH’s answer: yes. At the end of the term, the price is the system’s fair market value at that time, minus a credit for everything you prepaid, and never less than $0. Because it is the value of a five-year-old used system, we expect that number to be small. We show you the methodology up front, in writing, before you commit.
5. Are any payments left after I prepay? Some products carry service fees or insurance requirements during the term.
PATH’s answer: no. Your one prepayment covers the entire term. There are no monthly charges, no service fees, and no escalators. The end-of-term purchase option is separate and optional.
6. How does the federal credit show up in my price? The company claims the credit, not you, so the pass-through is where the value lives.
PATH’s answer: Balto claims the credit as the system’s owner, and that value is reflected in your one-time PATH price. We will show you the comparison against a cash quote for the same system, side by side.
When Balto PATH isn't the right fit
We would rather tell you now than after a site visit.
You want to own the system from day one: If holding title from the start matters more than the discount, a cash purchase is the simplest structure, and we install those too.
You installed in 2025: If your system was operational by December 31, 2025, you may still claim the homeowner credit on that year’s return. Talk to your tax professional first.
See your Balto PATH price next to a cash quote
We have designed and installed solar and battery systems in the North Bay since 2008. We will model your home, show you every option side by side, and let the numbers make the case.
