Solar Tax Credits in 2026
The rules changed. Here's what you need to know — and how to still access maximum savings.
The 30% Homeowner Tax Credit Expired December 2025
The residential clean energy credit (previously 30% of system cost for direct purchases) was not renewed by Congress and expired at the end of December 2025. If you purchased a solar system directly after that date, you cannot claim the 30% credit on your federal taxes.
The Good News: You Can Still Access These Savings
Through Solar Leases and Power Purchase Agreements (PPAs), you can still effectively access the value of the 30% tax credit — because the installer owns the system, claims the credit, and passes the savings on to you through a lower monthly rate.
Direct Purchase
You buy and own the system outright. No federal tax credit in 2026.
- ✓You own the system fully
- ✓Highest long-term ROI
- ✓No monthly payments after payoff
- ✓30% federal credit no longer applies
Solar Lease
Installer owns the system, leases it to you at a fixed monthly rate.
- ✓Installer claims the 30% credit
- ✓Passes savings to you via lower rate
- ✓No upfront cost
- ✓Fixed predictable payments
- ✓Installer handles maintenance
PPA (Power Purchase Agreement)
You pay a set price per kWh for power the panels produce — usually below retail.
- ✓Installer claims the 30% credit
- ✓You pay per kWh used, often at 20–30% below retail
- ✓No upfront cost
- ✓Savings scale with your usage
Run the numbers for your home with our calculator.