What Can Be Included in a Prepaid Solar PPA

This is where the Prepaid PPA becomes especially valuable for homeowners in 2026. Because of the Third Party Owner, the entire installed system qualifies for the 30% federal ITC — and that credit covers more than just the solar panels.

• Solar panels The core of the system. Solar Tech installs high-efficiency panels sized for your home and energy usage.
• Battery backup storage A battery system — Tesla Powerwall 3, Enphase IQ Battery, or FranklinWH — can be included in the Prepaid PPA. Under California's NEM 3.0 rate structure, battery storage is essential for maximizing the value of your solar system. The battery qualifies for the 30% ITC as part of the system, and that value is built into your lower prepaid price. Learn more about battery backup storage.
• EV charger installation An EV charger installed as part of the solar project also qualifies as part of the system under the Prepaid PPA, meaning the 30% ITC value applies to the charger as well. For homeowners who drive electric or are planning to, this is one of the most cost-effective ways to add a Level 2 home charger. The tax credit value is embedded in the prepaid price — no paperwork, no waiting, no income requirement. Learn more about EV charger installation.

The 30% ITC Advantage — and Why It Still Applies

• The federal tax credit is gone for homeowners who purchase solar The 30% Residential Clean Energy Credit (Section 25D) expired for homeowners purchasing solar with cash or a loan after December 31, 2025. If you buy your system outright in 2026, there is no federal tax credit for you.
• Third Party Owned systems still qualify Under the Inflation Reduction Act, Third Party Owned solar systems like Prepaid PPAs continue to qualify for the 30% commercial ITC. The commercial system owner, claims the credit on the full installed system — solar panels, battery, and EV charger — and passes a portion of that value back to the homeowner through a lower prepaid price.

How the homeowner benefits

• No need for taxable income
• No waiting for a future tax refund
• No tax paperwork or filing requirements
• The value is built into a lower upfront price at the time of purchase
• Homeowners typically see roughly 20% effective savings embedded in the prepaid price

Why a Battery and EV Charger Make the Prepaid PPA Even More Valuable

• Power during outagesWith a battery included, your home stays powered during PG&E outages. Without a battery, most solar systems automatically shut off when the grid goes down.
• Better savings under NEM 3.0California's NEM 3.0 rate structure pays significantly less for solar energy exported to the grid during the day. A battery lets you store that energy and use it when electricity rates are highest, dramatically improving your return.
• EV charging at solar ratesWith an EV charger included in the system, you charge your vehicle using the solar energy your panels produce — at a fraction of utility rates. Combined with battery storage, you can charge overnight from stored solar power.
• All covered by the ITCSince all three — solar, battery, and EV charger — are part of the installed system under the Prepaid PPA, the 30% ITC applies to all of it. That full value is reflected in your prepaid price. Learn more about solar battery backup.

Prepaid Solar PPA vs Your Other Options

This comparison shows why many California homeowners choose a Prepaid Solar PPA when combining solar with battery backup and EV charging under current utility rules.

Prepaid Solar PPA — the case for it

• Lower effective system cost with ITC embedded
• Solar, battery, and EV charger in one project
• No maintenance or repair responsibility
• No inverter or battery replacement risk
• Predictable energy costs for 20 to 25 years
• No tax paperwork or income requirement

Prepaid Solar PPA — the case against it

• System is Third Party Owned for the first six years, then transfers to you
• Agreement term is fixed

Buying solar in 2026 — what changes

• You own the system outright
• No long-term agreement
• The 30% federal tax credit is no longer available for cash or loan purchases
• Maintenance, inverter replacement, and battery replacement are your responsibility
• Higher effective cost without the ITC benefit

Why Home Pro Roofing and Solar for Your Prepaid PPA

Home Pro coordinates Prepaid Solar PPA installations through Solar Tech, one of California's top-rated solar companies. Solar Tech acts as the installer, managing system design, installation, permitting, monitoring, and long-term maintenance. A separate Third Party Owner holds the system agreement and claims the 30% commercial ITC, passing that value back to you through a lower prepaid price.

Here is how the project works:

• Solar Tech designs and installs your solar, battery, and EV charger system
• A Third Party Owner holds the agreement and claims the commercial ITC
• Home Pro manages the customer relationship and coordinates any roofing work needed before installation
• You get one point of contact for your roof, solar, battery, and EV charger
• This structure gives you a top-rated installer, long-term ownership stability, and the benefit of working with a local contractor who has served the Bay Area for nearly 20 years.
  If your roof needs to be replaced before solar can be installed, we handle that too. Learn more about our roof replacement services. Learn more about solar panel removal and reinstallation if you already have solar.

Who Is a Prepaid Solar PPA Right For

A Prepaid PPA is a strong fit if any of these apply to you:

• You want solar but do not want to own or maintain the equipment
• You drive an EV or plan to and want to charge at home using solar rates
• You want battery backup for outages and peak-hour savings
• You do not have enough taxable income to fully benefit from a purchased solar tax credit
• You want to lock in low energy costs for 20 to 25 years without a loan

It is not the right fit if you specifically want to own the system outright or if you plan to move within the next few years without being able to transfer the agreement.

Service Areas — Santa Clara, San Mateo, and Alameda Counties

Home Pro coordinates Prepaid Solar PPA installations throughout Sunnyvale, Mountain View, Los Altos, Los Altos Hills, Saratoga, Palo Alto, Cupertino, Santa Clara, San Jose, Redwood City, San Carlos, Belmont, San Mateo, Menlo Park, Fremont, Newark, and Union City.

Frequently Asked Questions About Prepaid Solar PPAs

Do I own the solar system? Do I own the solar system? Not initially. The system is owned by a Third Party Owner for the first six years, which is required under IRS rules for the commercial ITC to apply. After that period, ownership transfers to you as the property owner. Throughout the entire term, Solar Tech covers installation, warranties, monitoring, and maintenance — so the experience is very similar to ownership from day one, without the upfront financial risk.

Who handles maintenance and repairs? Solar Tech handles all system monitoring, maintenance, and repairs for the life of the agreement. If something stops working, it is not your financial responsibility.

Can a battery and EV charger be included? Yes. Battery storage and an EV charger can both be included as part of the installed system. Both qualify under the 30% ITC along with the solar panels, and that value is built into your prepaid price.

Does the 30% federal tax credit still apply? For Third Party Owned systems like the Prepaid PPA, yes. The commercial ITC under the Inflation Reduction Act continues to apply to the full installed system. Solar Tech claims the credit and passes the value back through a lower prepaid price. The residential tax credit for cash or loan purchases expired December 31, 2025.

What happens if I sell my home? The agreement transfers to the new homeowner. Many buyers view it as a benefit because of the lower energy costs already locked in.

Is a Prepaid PPA different from a solar lease? Yes. A solar lease involves monthly payments. A Prepaid PPA is paid upfront, which eliminates financing fees and typically results in a lower total cost over the agreement term.

Is a Prepaid PPA different from a monthly PPA? Yes. A monthly PPA has no upfront payment but includes ongoing monthly charges. A Prepaid PPA is paid upfront in full, which locks in your rate and eliminates monthly billing.

Do I need to replace my roof first? If your roof is near the end of its life, yes — solar should not be installed on a roof that will need replacement in the next few years. Home Pro handles roof replacement before solar installation and can coordinate everything under one project. Learn more about roof replacement.

Related Services

• Solar Installation
• Battery Backup Storage — Tesla Powerwall, Enphase, FranklinWH
• EV Charger Installation
• Solar Panel Removal and Reinstallation
• Roof Replacement
• Enfin PPA by Axia by QCells
• All Financing Options

Find Out if a Prepaid Solar PPA Is Right for Your Home

Contact Home Pro Roofing and Solar for a free evaluation. We will review your energy usage, roof condition, and goals to help you decide whether a Prepaid PPA, monthly PPA, or another financing option is the right fit.

Call (800) 650-3134 — Available 7 days a week, appointments available same week.

Serving Sunnyvale, Mountain View, Los Altos, Palo Alto, Cupertino, Santa Clara, San Jose, Redwood City, San Carlos, Belmont, San Mateo, Menlo Park, and surrounding communities. Licensed California Contractor — CSLB #1050229.