Solar · guide
Is there still a federal solar tax credit in 2026?
Not for home solar under the residential clean energy credit. The IRS says the section 25D credit “the credit will not be allowed for any expenditures made after December 31, 2025.” and that an expenditure is treated as made when installation is completed, so a system installed in 2026 doesn’t qualify even if it was paid for in 2025.
What the IRS says
25D Residential clean energy credit: The credit will not be allowed for any expenditures made after December 31, 2025.
7. For purposes of the residential clean energy credit under section 25D, can a credit be claimed for property installed after December 31, 2025, or constructed after that date, if a taxpayer pays for the property on or before December 31, 2025? No. Section 25D(e)(8)(A) provides that an expenditure with respect to an item is treated as made when the original installation of the item is completed. If installation is completed after December 31, 2025, the expenditure will be treated as made after December 31, 2025, which will prevent the taxpayer from claiming the section 25D credit.
What it means for payback
Simple payback = the price you pay ÷ (the kWh a year your system offsets × your rate). Without the credit, the price in that sum is the full price. Enter your own quote in the home solar tool; we don’t assume a price.
FAQ
Is there still a federal solar tax credit in 2026?
Not for home solar under the residential clean energy credit. The IRS says the section 25D credit “the credit will not be allowed for any expenditures made after December 31, 2025.” and that an expenditure is treated as made when installation is completed, so a system installed in 2026 doesn’t qualify even if it was paid for in 2025.
Do other solar calculators still count the 30% credit?
Some still apply it. Our home tool doesn’t: its payback is the quoted price divided by what the system saves you each year, with no federal credit.
Are there other incentives?
State, utility and local programs may exist and change often. Ask your utility or state energy office, and get anything a salesperson promises in writing. This isn’t tax advice; a tax professional can confirm what applies to you.
Sources and assumptions
- Solar output (kWh per kW of panels, by month): Global Solar Atlas 2.0, long-term averages to 2025 (data version 2.2.68, updated 2026-04-01), for crystalline-silicon panels facing south at the best fixed tilt, after typical system losses. Data obtained from the “Global Solar Atlas 2.0, a free, web-based application is developed and operated by the company Solargis s.r.o. on behalf of the World Bank Group, utilizing Solargis data, with funding provided by the Energy Sector Management Assistance Program (ESMAP). For additional information: https://globalsolaratlas.info” Licensed CC BY 4.0; we rounded and combined it as described here. Not affiliated with or endorsed by Solargis or the World Bank Group.
- State figure: population-weighted average of the state’s three largest cities (U.S. Census Bureau Vintage 2024 population estimates; coordinates from the 2020 Census Gazetteer). Hawaii and DC use one city.
- Cross-check: NASA POWER sunshine climatology (2001–2025), tilted with a standard isotropic-sky model × 0.80. States more than 12% apart were reviewed by hand; the gaps are explained on our methodology page.
- Home use: EIA Table 5A, 2024 average monthly residential kWh by state. Rates: EIA Electric Power Monthly, August 2026.
- Tax credit: IRS FAQ on the One, Big, Beautiful Bill (FS-2025-05, Aug. 21, 2025).
- Assumptions: 85% charging efficiency into a battery, 85% from battery to appliance, panel counts rounded up, off-grid sizing for the worst month.