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ARTICLE · 30 JUNE 2026

The Rise Of Third-Party Solar: Navigating A New Regulatory Frontier

Mayer Brown
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The residential solar industry is experiencing a dramatic shift from customer-owned systems to third-party ownership models, driven by the expiration of federal tax credits for homeowners and rising financing costs.

United StatesEnvironment
Joy Tsai
Joy Tsai
Christa Bieker
Christa Bieker
Ryan J. Scarcella
Ryan J. Scarcella
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The residential solar industry has seen significant shifts over the past two years. While residential solar loans led the market for many years, the Third-Party Ownership (“TPO”) model is gaining prominence. The expansion of the TPO model, which includes both leases and power purchase agreements (“PPAs”), has attracted scrutiny from both state legislators and regulators. Concerns about consumer protection and the adequacy of existing regulatory frameworks have prompted a wave of legal and regulatory activity across the country. In this Legal Update, we summarize the factors prompting growth of the TPO model and provide a survey of recent regulatory and legislative developments.

Expansion of the TPO Model

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This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

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