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Tax credit

The federal solar tax credit in 2026

The 30% residential credit applied through 2025. A 2026+ residential install does not qualify. Here's the detail.

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The residential Clean Energy Credit (Section 25D) was a 30% non-refundable federal tax credit on the cost of a home solar system, for property placed in service from 2022 through 2025. The 2025 budget-reconciliation law (OBBBA) ended it for residential expenditures made after December 31, 2025.

What that means

  • A residential system placed in service in 2026 or later gets no Section 25D credit.
  • Systems placed in service by the end of 2025 can still claim 30%, subject to the usual rules.
  • It was non-refundable but could carry forward — it reduced tax owed, not a cash rebate.

Costs that counted (through 2025)

  • Panels, racking, inverters and wiring.
  • Labor for on-site prep, assembly and installation.
  • Permitting fees and inspection costs.
  • Battery storage of 3 kWh or more.

Roof replacement, extended warranties and financing fees did not count. Our calculators already apply the correct rate for the install year — see the Tax Credit Calculator.

FAQ

Can I still get 30% if I sign in 2025 but install in 2026?

The credit follows the year the system is placed in service, not the contract date. A 2026 activation does not qualify.

Are there state credits instead?

Some states still offer their own credits or rebates. See solar incentives by state.

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