Solution:
Take any configuration of switches such that there exists at least one row and one column which are switched on. There are (26−1)2=3969 such configurations.
We prove that any two such configurations A and B lead to a different set of lights. Without loss of generality assume A has row r switched on and B doesn't have row r switched on. Thus, configuration A will contain at least one light turned on in row r (since there exists at least one column switch which is turned on), while configuration B contains zero such lights turned on. Thus configuration A and B lead to different sets of lights.
All configurations where all columns or all rows are turned off lead to all lights being turned off. We add 1 extra option to account for this case, getting 3969+1=3970 total possibilities.