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2026 Solar Incentives

Is the Solar Tax Credit Still Available in 2026?

Short answer: not if you buy — but yes if you go $0-down. Here's the honest breakdown.

The 30% federal solar tax credit for homeowners who buy their system (Section 25D) ended on December 31, 2025. If you purchase solar with cash or a loan in 2026, you get no federal tax credit. The one way homeowners still capture the 30% in 2026 is through a $0-down lease or PPA, where the company that owns the system claims the credit and passes the savings to you as lower payments — available through 2027.

What actually changed

The "One Big Beautiful Bill Act," signed in July 2025, ended the Residential Clean Energy Credit (Section 25D) almost a decade ahead of its original 2034 phase-out. There is no step-down and no partial credit — for a system you own, the federal credit went from 30% to 0% on January 1, 2026.

How you go solar in 2026Federal credit
Buy with cash or a loan (you own it)$0 — the 25D credit expired
$0-down lease or PPA (third-party owns it)30% via Section 48E — claimed by the owner, passed to you as lower payments (through 2027)
Why this favors $0-down in 2026. Because the homeowner credit is gone, a lease or PPA is now the only structure that still puts the 30% federal value to work on your roof. The provider claims it and prices your monthly payment lower because of it — so you benefit without needing a tax liability of your own.

State incentives didn't go away

The federal change doesn't touch state and utility programs. Depending on where you live, those can include state tax credits, performance payments (SRECs), upfront rebates, property-tax exemptions, and — importantly — net metering, which credits you for the excess power your panels send to the grid. These vary widely by state and utility, which is why the real answer depends on your address.

Watch out for outdated claims. A lot of solar content still online — and some sales pitches — promise "30% back" for buying a system in 2026. For a purchased system, that's no longer true. If someone references a federal credit for a system you'd own, ask them to point to current IRS guidance.
Keep reading:Is solar still worth it in 2026? →How much does solar cost in 2026? →

Frequently asked questions

Is the federal solar tax credit still available in 2026?

Not for homeowners who buy their system. The 30% Residential Clean Energy Credit (Section 25D) expired on December 31, 2025 under the One Big Beautiful Bill Act. Homeowners who purchase solar with cash or a loan in 2026 receive no federal tax credit. The 30% is still available indirectly through a lease or PPA, where the company that owns the system claims the Section 48E commercial credit and passes the savings through as lower payments, in effect through 2027.

Can I still get 30% off solar in 2026?

Only through third-party ownership — a $0-down lease or PPA. In that structure the financing company owns the system, claims the 30% Section 48E credit, and prices your monthly payment lower to reflect it. If you buy the system yourself, you cannot claim a federal credit in 2026.

Does battery storage still qualify for a tax credit?

An owned battery installed in 2026 no longer qualifies for the federal residential credit, since it expired along with the rest of Section 25D. Some states and utilities offer their own battery rebates, and a leased battery may still benefit from the commercial credit claimed by the system owner.

Will the federal solar tax credit come back?

There is no current law restoring the residential credit. The most reliable way to plan in 2026 is around what exists now: $0-down lease/PPA financing that uses the commercial credit, plus your state and utility incentives and ongoing electric-bill savings.

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 and your installer before deciding. Last reviewed: June 2026.