Prepaid Lease Rooftop Solar Financing Model

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A new rooftop solar financing model called a prepaid lease is gaining traction in the United States. This model allows solar companies to use a commercial tax break to offer homeowners up to 30% upfront cost reduction, helping keep rooftop solar affordable after the expiration of the federal residential tax credit. The solar provider or financing partner owns the system initially, enabling them to use the Section 48 commercial Investment Tax Credit and pass the savings to customers. Some programs can increase discounts to 40% with a domestic content bonus for U.S.-made equipment.