Many homeowners don’t realize how quickly solar financing changes. One year, everyone is talking about tax credits. The next year, the rules look completely different. That’s exactly what happened when the residential solar tax credit expired on December 31, 2025.
Naturally, we started hearing the same question over and over: Does solar still make sense now?
The short answer is yes — but not for the reasons most people expect.
Solar didn’t stop — it adapted
Solar has always been an industry that evolves quickly. When the tax credit expired, financing companies didn’t just walk away. Instead, new products were created to help homeowners continue seeing strong value from residential solar installations.
One of the biggest changes has been the introduction of prepaid solar lease options. These are designed to give homeowners the same overall value they would have received from the tax credit, essentially making it feel like the credit never went away.
Alongside prepaid leases, there are still solar lease and PPA options available. The key is understanding which option fits your situation best — not assuming there’s only one path forward.
Utility rates are driving the conversation
The other major factor shaping solar decisions right now is utility pricing.
In Atlantic City Electric territory, rates have climbed from roughly 22 cents per kilowatt-hour to around 32 cents. That kind of increase has a real impact on monthly bills, and it’s one of the biggest reasons homeowners are revisiting solar panel installation in New Jersey.
When rates were lower, it could be difficult to show meaningful savings. Today, it’s not uncommon for homeowners to cut their electric bills by 50 to 60 percent in the first year alone.
When you compare a utility rate in the low 30-cent range to a solar rate closer to 11 or 13 cents, the value becomes much clearer.
Why accurate information matters more than ever
As solar options expand, misinformation becomes more common — especially with companies that grow too fast.
We’ve seen installers scale rapidly and send out reps who haven’t been properly trained. That’s how homeowners end up with incorrect explanations about equipment, pricing, or long-term expectations.
That’s why we focus on education, proposal reviews, and verification calls as part of our solar consultation process. Solar is a long-term investment, and homeowners deserve clear, accurate information before making a decision.
The takeaway
The tax credit may be gone, but solar hasn’t slowed down. Rising utility rates and new financing options continue to make going solar in New Jersey a smart move for many homeowners.
The most important step is understanding today’s options — not relying on outdated advice.