For a new residential solar system installed in 2026, homeowners generally can no longer claim the former 30% federal Residential Clean Energy Credit.
But there is an important exception in how people talk about “getting the credit in 2026.”
If your qualifying solar system was completed by December 31, 2025, you may still claim the credit when you file your 2025 federal tax return in 2026.
That distinction is important:
Installed in 2025 and claimed in 2026? Potentially yes.
New solar installation completed in 2026? No Section 25D homeowner credit.
The IRS states that the Residential Clean Energy Credit applied to qualified property installed through December 31, 2025 and is not available for property placed in service after that date.
What Happened to the 30% Solar Tax Credit?
The Residential Clean Energy Credit was found in Section 25D of the Internal Revenue Code.
It previously allowed eligible homeowners to claim a credit equal to 30% of qualified residential clean-energy expenses, including:
- Solar panels
- Solar water heating
- Battery storage
- Geothermal heat pumps
- Small wind systems
- Certain fuel-cell systems
The credit originally had a much longer life under previous federal law.
However, legislation enacted in 2025 accelerated its termination.
The IRS now states that Section 25D does not allow credits for qualifying expenditures made after December 31, 2025.
For homeowners considering rooftop solar in 2026, that means the familiar 30% residential federal credit is no longer part of the normal purchase calculation.
Can I Claim the Solar Credit on My 2026 Tax Return?
This is where the wording gets confusing.
If you mean:
“Can I file for the credit during calendar year 2026?”
Possibly yes.
A homeowner who completed a qualifying solar installation in 2025 would normally claim the credit on the 2025 tax return, which is generally filed in 2026.
The IRS instructs taxpayers to claim the Residential Clean Energy Credit using Form 5695 for the tax year in which the qualifying property was installed.
So seeing someone receive a solar tax credit in 2026 does not necessarily mean their solar system was installed in 2026.
They may simply be filing their taxes for a qualifying 2025 project.
What If I Paid for Solar in 2025 but It Was Installed in 2026?
This is another important issue.
Simply signing a contract or making a deposit before the end of 2025 generally does not mean a homeowner automatically qualifies.
The IRS says the credit must be claimed for the year in which the residential clean-energy property is installed, rather than simply when it was purchased.
So if you paid a solar installer in late 2025 but the qualifying installation was not completed until 2026, you should not assume the former Section 25D credit applies.
This matters for homeowners who rushed to sign contracts before the 2025 deadline.
Payment date and installation date are not necessarily the same thing for tax-credit purposes.
What If I Have Unused Solar Tax Credit From 2025?
There is another group of homeowners who may still benefit after 2025.
The Residential Clean Energy Credit was nonrefundable.
That means the credit generally could reduce your federal tax liability, but it could not create a refund beyond the amount of tax otherwise owed.
However, the IRS says eligible unused credit may be carried forward to future years.
For example, suppose an eligible 2025 solar installation generated a $7,500 credit but the homeowner could use only $5,000 against that year’s tax liability.
The remaining eligible amount may potentially be carried forward.
That is very different from installing a brand-new solar system in 2026 and claiming a new 30% credit.
Does Battery Storage Still Get the 30% Homeowner Credit in 2026?
Not under the former Section 25D homeowner credit for a new 2026 installation.
Battery storage had become eligible for the Residential Clean Energy Credit beginning in 2023, provided qualifying requirements were met, including a minimum storage capacity of 3 kWh.
But because Section 25D terminated after 2025, the same deadline affects qualifying residential battery expenditures.
So homeowners should be careful when reading older articles saying:
“Solar batteries qualify for a 30% federal tax credit.”
That information may have been correct for earlier tax years but can now be outdated for a new 2026 residential installation.
Are There Any Solar Incentives Left in 2026?
Yes.
The end of Section 25D does not mean every solar incentive in the United States disappeared.
Depending on where you live, homeowners may still find:
- State solar incentives
- Utility rebates
- Property-tax exemptions
- Sales-tax exemptions
- Renewable energy credits
- Local financing programs
- Net-metering or export-compensation programs
The availability and value of these programs varies dramatically by state and utility territory.
That means solar economics in 2026 are becoming even more location-dependent.
A project in a state with high electricity prices and strong local incentives may still perform well financially, while an expensive system in a low-rate utility territory may have a much longer payback period.
Does the End of the Tax Credit Mean Solar Is No Longer Worth It?
Not necessarily.
The federal tax credit made the economics much easier.
For example, a qualifying $25,000 solar project under the former 30% credit could potentially generate a $7,500 federal tax credit.
Without it, the homeowner has to justify substantially more of the original installation cost through electricity savings and other incentives.
But that does not automatically make solar a bad investment.
The important numbers in 2026 are now:
Installation cost per watt
Annual solar production
Current electricity rate
Expected electricity-rate increases
Self-consumption
Utility export compensation
State and local incentives
Financing cost
This is also why I would compare several solar quotes rather than focusing only on monthly-payment claims from installers.
A high installation price is harder to hide when there is no longer a 30% homeowner federal credit offsetting part of the cost.
My View From the Electrical Construction Side
From an electrical construction perspective, I think the expiration of the federal credit makes good system sizing even more important.
When a large incentive exists, an oversized or expensive project can sometimes still look attractive on paper.
Without that cushion, the electrical and financial design needs to make more sense on its own.
I would start with the home’s actual electricity usage, roof conditions, expected production, utility rules and existing electrical equipment before deciding how large the solar system should be.
The question in 2026 should not simply be:
“How much solar can I install?”
It should be:
“How much solar provides a reasonable return for this particular home?”
Final Answer
So, can you still get the federal solar tax credit in 2026?
For a new residential solar installation completed in 2026, generally no. The former 30% Residential Clean Energy Credit under Section 25D ended for new qualifying expenditures after December 31, 2025.
However, you may still be dealing with the credit in 2026 if:
Your qualifying system was installed in 2025 and you are filing your 2025 tax return, or you have eligible unused credit being carried forward from an earlier qualifying year.
That distinction is the key to understanding the federal solar tax credit in 2026.
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