Solar Tax Credits & Incentives in 2026

The big change: §25D is gone for new systems

The Residential Clean Energy Credit (IRC §25D) gave 30% of qualifying costs — no dollar cap — for homeowner-owned solar and batteries placed in service through 2025. The One Big Beautiful Bill Act (signed July 4, 2025) repealed it for property placed in service on or after January 1, 2026. No phase-down, no transition. A system you buy in 2026: $0 federal credit.

If your system was installed and operational by December 31, 2025, you can still claim 30% on your 2025 federal return using IRS Form 5695. The credit is non-refundable (it reduces tax owed; it does not become a refund beyond what you owe) and unused amounts carry forward.

What still exists at the federal level

• §48E (commercial / third-party-owned): 30% base credit for qualifying projects. Solar generally must be placed in service by 12/31/2027; projects that began construction by 7/4/2026 may use a longer window. FEOC/PFE sourcing rules apply from 2026.
• §48E storage: standalone or paired storage remains eligible through 2033 (phase-down after), same sourcing rules.
• Lease/PPA nuance: you don’t claim §48E — the company that owns the system does, and may pass part of the benefit through as a lower rate. It is indirect.

How the money flows (or doesn’t)

A tax credit is not cash in hand. It reduces federal income tax you owe, dollar for dollar, and only if you owe enough. That is why we never say “you will receive $X.” In 2026 the residential question is moot anyway — there is no credit to misunderstand. What remains are state rebates (often paid after interconnection), tax exemptions (property/sales tax — ongoing value, not a lump sum), and export tariffs (the value of every kWh you export).

What to check in your state

State programs vary enormously and change often. Use the incentive finder for status-aware records, then verify on the program’s own site. Things that commonly catch people out:

• Funding blocks: NY-Sun and Illinois Shines values decline as capacity fills — the block you saw last month may be gone.
• Expired programs still being advertised: NJ SRECs (ended 2022), CO income-tax credit (ended 2021), and — everywhere — “30% federal credit” pitches.
• Eligibility detail: owner-occupied, system size caps, interconnection deadlines, and whether batteries qualify.
• Property-tax exemptions: many states exempt solar from reassessment, but some are local-option — confirm your county.

Our verification standard

Every incentive record on this site carries a status (current / expired / recheck needed / data unavailable), an amount quoted from program materials, a source and a last-checked date. Expired programs render as expired. Records we couldn’t verify render as “recheck needed,” never as available. If a number on this site changes your decision, confirm it with the program before signing — that’s the standard we hold ourselves to.

The bottom line

Budget for solar in 2026 with $0 federal credit, verified state incentives only, and a healthy skepticism toward any quote that “includes” a 30% federal credit. The deal is in the cash price, the production, and the export tariff — not in a tax-credit line that no longer exists.