In 2026, homeowners who buy a system can't claim the federal solar tax credit — but the 30% still reaches homeowners through $0-down lease/PPA financing, where the system owner claims it and prices your payment lower. On top of that, state tax credits, SRECs, rebates, property-tax exemptions, and net metering remain very much alive, and they vary a lot by state.
Federal: only through $0-down now
The Section 25D residential credit ended December 31, 2025. The 30% commercial credit (Section 48E) continues through 2027 for third-party-owned systems — so a lease or PPA is the path that still puts that federal value on your roof, captured by the provider and passed through as a lower payment.
State & utility incentives (these didn't change)
- State tax credits — several states still offer their own percentage-based credits.
- SRECs / performance payments — you earn credits for the power your system generates (strong in NJ, MD, PA, and others).
- Upfront rebates — some states and utilities still pay a per-watt or flat rebate.
- Net metering — credit for excess power sent back to the grid; one of the biggest levers, and it's utility-specific.
- Property- & sales-tax exemptions — many states don't tax the home-value increase from solar, and some waive sales tax on the equipment.
See the incentives for your address
Your state and utility decide what you qualify for. Check your ZIP to see your $0-down options.
See My Savings →Frequently asked questions
Are there any federal solar incentives left in 2026?
Yes, but only through third-party ownership. Homeowners who buy a system get no federal credit, while the 30% commercial credit (Section 48E) still applies to leases and PPAs through 2027 — claimed by the system owner and passed to you as a lower payment.
What state solar incentives are available in 2026?
It varies widely. Depending on your state you may have a state tax credit, SREC/performance payments, upfront rebates, property- and sales-tax exemptions, and net metering. These were not affected by the federal change.
What is net metering and is it still available?
Net metering credits you for surplus power your panels send to the grid, offsetting what you draw later. It remains available in many states, though the exact rate and rules are set by your utility.
Do solar incentives expire?
Some do and some are ongoing. The federal residential credit already expired (end of 2025); the commercial credit behind leases/PPAs runs through 2027; state and utility programs have their own timelines and budgets, so it's worth acting while your state's program is funded.
This page is general information, not tax or legal advice. Federal and state solar incentives change and depend on your situation — confirm details with a licensed tax professional before deciding. Last reviewed: June 2026.