Are pre-paid leases the answer for solar in 2026? Highlights from webinar

Pre-paid leases are suddenly everywhere. If you've been to a trade show, scrolled LinkedIn, or talked to a financing rep in the past few months, you've probably noticed. This topic has taken over the conversation.

So we brought together three people who are living this from very different angles: an installer actively evaluating pre-paid leases for his business, a finance specialist who works with installers on the financing side (including a new pre-paid lease product), and a lender who has intentionally stayed in the loan lane and wants you to think carefully before leaving it.

On March 25th, we hosted Are Pre-Paid Leases the Answer in 2026? — a candid, one-hour conversation with no sales pitches and no easy answers. Close to 600 people registered. Here's what we covered.

Moderator: Scott Nguyen, Bodhi

Panelists:

• Stan Pipkin, CEO — Lighthouse Solar
• Allen Lam, Finance Specialist — Greentech Renewables
• Dema Headley, SVP of Digital Banking — Climate First Bank

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How are installers currently thinking about pre-paid leases?

We kicked things off with a quick audience poll: How are you currently thinking about pre-paid leases for your business?

• 41% — We're already offering them
• 37% — We're actively evaluating them
• 17% — We're curious but haven't looked into them yet
• 5% — We're sticking with loans and/or cash

The fact that 78% of the room was either already offering pre-paid leases or deep in evaluation mode set the tone for the conversation. This wasn't a theoretical discussion; these were real decisions people are making right now.

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Topics we covered

Why are pre-paid leases suddenly so popular?

The short answer: the tax landscape shifted. The residential tax credit (Section 25D) sunset at the end of 2025, but third-party ownership structures can still access the commercial investment tax credit (Section 48E) plus adders like domestic content and energy community bonuses. That incentive stack, potentially up to 50%, is passed through to the homeowner in the form of a lower upfront price. Pre-paid leases became relevant fast because they fill a gap that direct homeowner ownership can no longer fill on its own.

What does switching to pre-paid leases mean for the customer experience?

This is where the nuance lives. Pre-paid leases look a lot like a cash purchase from the homeowner's perspective (they pay upfront and get solar) but the legal structure underneath is meaningfully different. The system is owned by a third party for roughly six years, after which ownership transfers to the homeowner. That end-of-term transfer, how it's explained (or misrepresented) to customers, and what happens if the homeowner needs to move or refinance before then were all on the table.

What does switching to pre-paid leases mean for solar company operations?

Offering a third-party ownership product isn't just a new financing option; it changes how your business runs. Documentation requirements are more rigorous. Funding timelines can be slower. Equipment sourcing may need to meet domestic content requirements. And you're now accountable to an investor, not just a homeowner. The panelists talked through what that actually looks like in practice and what installers tend to underestimate.

We closed with an open Q&A, fielding questions on RECs and local incentives, system add-ons during the hold period, state availability, TPO provider due diligence, and more.

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Key takeaways from the panel

Scott Nguyen — Bodhi

Scott set up the session with a plain-language definition of what a pre-paid lease actually is and surfaced a tension that ran through the whole conversation: these products feel familiar to homeowners, but the underlying structure is anything but.

"It feels like buying, but the economics and the legal structure are quite different."

He also raised a pointed question about provider stability, noting that SunPower, Posigen, Sunnova, and others were established players before they went under and pushed the panelists on how installers, who operate on thin margins, can protect themselves if a TPO provider stops paying or shuts down.

Allen Lam — Finance Specialist, Greentech Renewables

Allen explained the structural reason pre-paid leases are suddenly compelling: the 48E investment tax credit, domestic content bonuses, and energy community adders can stack to 50%, well above what a homeowner could have captured on their own under the old 25D credit. Pre-paid structures let that incentive stack flow through to the customer as a lower price.

"Pre-paids are filling that gap. They allow homeowners to still benefit from tax credit pricing and maintain a pathway to ownership eventually down the road."

Allen also flagged important nuance on the end-of-term transfer: the contract language typically specifies fair market value — not $0 or $1 — and installers need to make sure what they tell customers matches what the contract actually says.

Stan Pipkin — CEO, Lighthouse Solar

Stan gave the installer's perspective in real time. Lighthouse is actively evaluating pre-paid leases right now. He was candid that while the product is compelling in the right markets, he sees it as a bridge, not a destination.

"We're not seeing this as an overall general solution in perpetuity. It's really that strategic bridge."

Stan emphasized the customer experience questions that need answers before an installer can feel comfortable presenting these products: What exactly happens at year six? What does ownership transfer look like and does it cost anything? What are the implications for a homeowner who needs to move? And how does a pre-paid lease affect a homeowner's ability to modify or add to their system later?

Dema Headley — SVP of Digital Banking, Climate First Bank

Dema offered the counterweight the conversation needed. Climate First Bank has intentionally stayed out of TPO products, and she made the case for why loans still win for many customers and many installers.

"Homeowners want simplicity throughout the process — not just at the point of sale."

She raised a practical warning sign that's showing up in the market right now: some installers are waiting weeks or months to get funded on completed projects because TPO providers have to verify materials, confirm domestic content requirements, and clear internal compliance before releasing payment. That cash flow pressure is real, and it's something installers evaluating pre-paid leases need to pressure-test before going all in. Her advice: build a true side-by-side comparison — loan versus pre-paid — and walk through it with your team and your customers.

Watch the full webinar here

We recorded the full session. If you want to catch the complete conversation — including the audience Q&A — you can watch it below.

Want to keep your solar business ahead of the curve? Bodhi helps solar companies protect and grow their business with happy customers. Find a time to talk to us.