The 30% federal tax credit for homeowners who buy their solar system (Section 25D) ended on December 31, 2025. If you purchase with cash or a loan in 2026, there's no federal credit. The way homeowners still capture the 30% is through a $0-down lease or PPA — the installer that owns the system claims the credit and passes the savings to you as a lower payment, available through 2027.
What changed
The "One Big Beautiful Bill Act" (July 2025) ended the residential credit nearly a decade early — no step-down, no partial credit. For a system you own, it dropped from 30% to 0% on January 1, 2026.
| How you go solar in 2026 | Federal credit |
|---|---|
| Buy with cash or a loan (you own it) | $0 — the 25D credit expired |
| $0-down lease or PPA (installer owns it) | 30% via Section 48E — claimed by the owner, passed to you as a lower payment (through 2027) |
State and utility incentives — credits, SRECs, rebates, property-tax exemptions, and net metering — were not affected and remain available in many states. See our 2026 solar incentives guide for what's left.
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See If You Qualify →Frequently asked questions
Is the federal solar tax credit still available in 2026?
Not for homeowners who buy. The 30% Residential Clean Energy Credit (Section 25D) expired December 31, 2025. Buyers in 2026 get no federal credit. The 30% still flows through a lease or PPA, where the installer that owns the system claims the Section 48E credit and passes the savings through as a lower payment, in effect through 2027.
Can I still get 30% off solar in 2026?
Only through a $0-down lease or PPA. In that structure the installer owns the system, claims the 30% credit, and prices your payment lower to reflect it. Buying the system yourself means no federal credit in 2026.
Does battery storage still qualify?
An owned battery installed in 2026 no longer qualifies for the federal residential credit. Some states and utilities offer their own battery rebates, and a leased battery may still benefit from the credit the system owner claims.
Will the credit come back?
No current law restores the residential credit. The practical plan for 2026 is $0-down lease/PPA financing that uses the commercial credit, plus your state and utility incentives and ongoing 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 before deciding. Last reviewed: June 2026.