Updated 2026-11-12

Is there a solar tax credit in 2026?

For homeowners who buy their panels: no. The 30% federal Residential Clean Energy Credit ended for systems installed after December 31, 2025. Payback math now rests on your electric rate and your sunshine.

Is the 30% solar tax credit still available in 2026?

No, not for homeowners who buy their system. Under the law signed July 4, 2025, the Residential Clean Energy Credit (IRS section 25D) is not allowed for expenditures made after December 31, 2025, and the IRS treats the expenditure as made when installation is completed.

I paid a deposit in 2025 but my panels were installed in 2026. Do I get the credit?

According to IRS guidance, no. The credit depends on when original installation is completed, not when you sign or pay.

Can I still claim the credit for a system installed in 2025?

Yes. Systems installed by December 31, 2025 are claimed on your 2025 tax return with IRS Form 5695.

What about solar leases and PPAs?

With a lease or power purchase agreement the installer owns the system and may claim a separate business credit, which can lower your monthly price. Ask the company how any credit is reflected in your contract.

Does solar still pay off without the credit?

In many places, yes. HomeSolarPayback's numbers have never included the federal credit, so every payback figure on this site is already a no-credit number.

Where solar still pays off fastest without the credit

1. Hawaii: 3.3 years
2. California: 5.4 years
3. Alaska: 6.7 years
4. Connecticut: 7.1 years
5. Rhode Island: 7.2 years
6. Arizona: 8.5 years
7. Maine: 8.9 years
8. New Hampshire: 9.0 years
9. New Mexico: 9.0 years
10. New York: 9.3 years

See every state →

Sources: IRS: Residential Clean Energy Credit; IRS FAQs on the 2025 law (P.L. 119-21). Not tax advice.

Check your own payback