Solar Financing Guide
How Solar Financing Works for Sales Organizations
A plain-English breakdown of TPO, solar loans, and sell-on-our-paper, and how to offer all three without managing multiple lender relationships yourself.
How solar financing works: the short version
Residential solar financing falls into three categories: third-party ownership (TPO), leases and PPAs where a company owns the panels and the homeowner pays monthly; solar loans, where the homeowner finances the purchase and owns the system outright; and sell-on-our-paper options, where a platform like Seamless Home finances the deal through its own funding vehicle.
For sales organizations, the challenge isn't understanding these products, it's offering all of them efficiently. Most deals are won or lost based on whether you can match the right financing to the right homeowner. Seamless Home connects sales orgs, installers, and EPCs to a multi-lender panel, including GoodLeap, Sunlight Financial, LightReach, EnFin, Concert Finance, and Solrite, so you never have to turn a deal away because your single lender didn't fit.
Federal solar tax credit status, important 2026 update
The 30% federal Residential Clean Energy Credit (Section 25D), the credit a homeowner claimed when they bought and owned a system, applied to property installed through December 31, 2025. Per the IRS, it is not available for property placed in service after that date. Homeowners purchasing a system in 2026 should not be told to expect a 30% federal credit.
Business-side credits are a separate matter. In a third-party-owned structure (a TPO lease or PPA), the provider owns the system and may claim the federal Clean Electricity Investment Credit (Section 48E) at the entity level; that has always sat with the owner rather than the homeowner, and is reflected in the pricing the provider offers.
State, local, and utility incentives are unaffected by this change and vary widely by jurisdiction. Confirm current federal, state, local, and utility incentive eligibility with a qualified tax professional and the administering authority before presenting any incentive to a homeowner. Seamless Home does not provide tax advice.
The three types of solar financing
1. Third-Party Ownership (TPO): Leases & PPAs
In a TPO arrangement, a financing company, not the homeowner, owns the solar panels installed on the home. The homeowner pays a fixed monthly lease payment (lease) or a per-kWh rate for the electricity the panels produce (power purchase agreement / PPA).
- $0 down for the homeowner. No purchase price, no loan payment.
- No federal tax credit for the homeowner. The provider owns the system, so any owner-side federal credit sits with them and is priced into the rate.
- Monthly savings, not total ownership. The homeowner saves on their utility bill but doesn't build equity in the system.
- Typical term: 20-25 years with escalator clauses on the payment.
Best for: Homeowners who want immediate savings with $0 upfront and aren't concerned about owning the system. TPO products from providers like LightReach are accessible to a broad credit band.
2. Solar Loans
A solar loan functions like a home improvement loan: the homeowner finances the purchase of the solar system, owns the panels outright, and makes monthly loan payments to the lender. Common terms range from 10 to 25 years.
- Homeowner owns the system. Panels increase property value and the homeowner keeps the full lifetime production with no lease escalator.
- Dealer fee instead of lease residual. Lenders charge the sales org a dealer fee; loan rates and terms vary by lender.
- Broad product range. GoodLeap, Sunlight Financial, EnFin, Concert Finance, and Solrite each offer different terms, rates, and credit tiers.
- Dealer fee & advance timing matter. Different lenders fund at different project milestones, this affects your cash flow and how quickly you can pay installers and suppliers.
Best for: Homeowners who want to own their system, build equity, and maximize long-term savings, and who have the credit profile to qualify.
3. Sell-on-Our-Paper
Some platforms, including Seamless Home, offer the ability to finance qualifying deals on the platform's own paper rather than through a third-party lender. This gives sales orgs a fallback path for deals that don't fit standard TPO or loan products.
- Third financing path. Closes deals that slip through TPO and loan qualification.
- No separate lender setup. The platform manages the paper; you don't negotiate terms with an outside lender.
- Deal-specific suitability. Not the right fit for every deal, works best when a deal qualifies under the platform's criteria.
Best for: Sales orgs who want a catch-all financing path and want to run it through the same platform as their fulfillment workflow, rather than maintaining a separate relationship.
TPO vs. solar loans vs. sell-on-our-paper: at a glance
Each product fits a different homeowner situation. The orgs that close the most deals offer all three.
| Factor | TPO (Lease / PPA) | Solar Loan | Sell-on-Our-Paper |
|---|---|---|---|
| Who owns the panels | TPO company | Homeowner | Platform / lender |
| Homeowner upfront cost | $0 | $0 (loan-funded) | Varies |
| Federal tax credit | Owner-side credit stays with the provider | None for the homeowner (25D ended after 2025) | Depends on structure |
| Typical term | 20-25 years | 10-25 years | Platform-specific |
| Best lenders / providers | LightReach | GoodLeap, Sunlight, EnFin, Concert Finance, Solrite | Seamless Home paper |
| Best homeowner fit | Wants $0 down, no ownership concern | Wants ownership + long-term savings | Doesn't fit TPO or loan criteria |
| Sales org complexity | Low, no loan underwriting | Medium, multiple lender relationships | Low, single platform |
The real problem: managing multiple lender relationships
Offering all three financing types in theory is easy. Offering them in practice is where most sales orgs break down. Each lender has its own dealer agreement, portal, document checklist, advance schedule, and credit policies. Running four lenders means four onboarding processes, four portal logins, and four sets of terms to track.
The result is that most sales orgs end up defaulting to one or two products they know well, and losing deals where those products don't fit. A homeowner who doesn't qualify for Lender A isn't automatically re-run on Lender B. A deal that fits a TPO but your rep only knows loans gets abandoned.
The best-performing solar sales organizations solve this with a fulfillment platform that manages the lender integrations, so the rep focuses on the deal, not the portal.
How Seamless Home handles solar financing for sales organizations
Seamless Home is a back-end fulfillment platform for residential solar sales organizations, installers, and EPCs. On the financing side, it gives you access to a multi-lender panel: GoodLeap, Sunlight Financial, LightReach, EnFin, Concert Finance, and Solrite, plus sell-on-our-paper options, all through one workflow.
Instead of maintaining separate lender agreements and portals, you qualify the homeowner and select the right product in a single dashboard. Financing lives alongside fulfillment: once the deal is funded, Seamless Home routes it to the installer network, procures materials through Direct Pay (no upfront working capital), and tracks design, permitting, engineering, and project milestones through to PTO.
The goal is to eliminate the back-office overhead that slows sales orgs down, so you keep selling while Seamless Home handles the rest.
Multi-lender access
GoodLeap, Sunlight, LightReach, EnFin, Concert Finance, Solrite.
TPO + loans + sell-on-paper
All three financing types in one workflow, no single-lender lock-in.
Integrated fulfillment
Financing, installer connections, Direct-Pay materials, and project management in one platform.
No upfront working capital
Direct Pay covers materials before funding lands, your cash isn't tied up in panels.
Frequently Asked Questions
Can a homeowner still claim the 30% federal solar tax credit?+
No, not for a system placed in service in 2026 or later. The federal Residential Clean Energy Credit (Section 25D), the 30% credit a homeowner claimed on a system they bought and owned, applied to property installed from 2022 through December 31, 2025, and per the IRS it is not available for property placed in service after that date. Ownership still carries real long-term value through equity, full lifetime production, and no lease escalator, but it should no longer be sold on a federal residential credit. In a third-party-owned lease or PPA the provider owns the system and may claim the federal Clean Electricity Investment Credit (Section 48E) at the entity level, which is reflected in the rate offered. State, local, and utility incentives are unaffected and vary by jurisdiction. Seamless Home does not provide tax advice, confirm current eligibility with a qualified tax professional before presenting any incentive to a homeowner.
What is TPO solar financing?+
TPO stands for Third-Party Ownership. In a TPO arrangement, either a lease or a power purchase agreement (PPA), a financing company owns the solar panels and the homeowner pays a monthly fee to use the energy they produce. The homeowner gets $0 upfront. The provider owns the system, so any owner-side federal credit sits with them rather than the homeowner and is reflected in the rate offered. TPO products are offered by providers like LightReach.
What is the difference between a solar loan and a solar lease?+
With a solar loan, the homeowner finances the purchase of the panels and owns the system outright, keeping the equity and the full lifetime production. With a solar lease (a type of TPO), a third-party company owns the panels and the homeowner makes monthly lease payments with an escalator. Loans typically deliver more long-term value for homeowners who plan to stay in the home; leases lower the barrier to entry with no upfront cost. Note that ownership no longer carries a 30% federal residential tax credit, that credit (Section 25D) ended for systems placed in service after December 31, 2025.
What does 'sell on our paper' mean in solar?+
Selling on the platform's paper means the deal is financed through a funding vehicle the platform controls, rather than through a traditional bank or lender. Seamless Home offers this as a third financing path for deals that don't fit standard TPO or loan products, giving your sales org another option to close without turning a deal away.
Which solar financing type has the highest close rate?+
It depends on the homeowner's situation. $0-down TPO options tend to lower the barrier for homeowners with limited cash, while loans close better with homeowners who want ownership, equity, and long-term savings without a lease escalator. The orgs that close at the highest rate offer both, so they can match the right product to each homeowner rather than losing deals where a single product doesn't fit.
How do I offer multiple solar financing options without managing each lender separately?+
A solar fulfillment platform like Seamless Home connects you to a multi-lender panel, including GoodLeap, Sunlight Financial, LightReach, EnFin, Concert Finance, and Solrite, through one workflow. Instead of maintaining separate lender relationships and portals, you qualify homeowners and select the right product in a single dashboard alongside your fulfillment and project management.
Does Seamless Home work with GoodLeap?+
Yes. Seamless Home gives sales organizations and installers access to a multi-lender panel that includes GoodLeap, Sunlight Financial, LightReach, EnFin, Concert Finance, and Solrite, alongside sell-on-our-paper options. You choose the right product per deal without being locked into a single lender. Lender panels change as the residential financing market shifts, confirm the current roster with Seamless Home before quoting a specific lender to a homeowner.
Keep exploring
Multi-lender solar financing
The right financing product on every deal: TPO, loan, or sell-on-our-paper.
Learn more →Direct Pay materials
Discounted materials with no upfront working capital, paired with financing.
Learn more →How to start a solar sales business
Build a sales-first solar org without the install and back-office overhead.
Learn more →What lender-agnostic means
Why more than one funding route changes approvals, economics and risk.
Learn more →Why solar loans get declined
The recurring causes, and why a stipulation is not a decline.
Learn more →Ready to offer every financing option on every deal?
Get in touch and we'll show you how multi-lender solar financing through Seamless Home works for your org: TPOs, loans, and sell-on-our-paper in one workflow.
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