Did the 30% solar tax credit expire in 2026?

The Section 25D residential ITC for homeowners who purchase or finance solar outright expired December 31, 2025 under the One Big Beautiful Bill Act. The commercial Section 48E ITC remains and is passed through to consumers via solar leases and PPAs.

Solar Incentives

What Solar Incentives Are Still Available in 2026?

Q: What solar incentives are still available in 2026?

The federal Section 25D residential tax credit expired December 31, 2025. Available in 2026: state tax credits in ~20 states, utility rebates at ~30+ utilities, SRECs in 7 states and DC, net metering in 44 states, the 30% Section 48E commercial ITC passed through lease/PPA agreements, and property and sales tax exemptions in ~36 and ~25 states respectively.

Last updated: May 2026 · MySolarLoanCompanion.com/learn/

The 30% federal Section 25D residential tax credit expired December 31, 2025 for homeowners who buy or finance systems outright. Available in 2026: state tax credits (~20 states), utility rebates (~30+ utilities), SRECs in 7 states and DC, net metering in 44 states, the Section 48E commercial ITC passed through lease and PPA agreements, and property/sales tax exemptions in most states.

Full Incentive Landscape — 2026

Incentive	Status in 2026	Who Qualifies	Approximate Value
Federal Section 25D ITC	EXPIRED Dec 31, 2025	Nobody — expired under OBBBA	$0
Federal Section 48E ITC (commercial)	ACTIVE — for TPO providers	Lease and PPA customers indirectly	~30% cost reduction via lower payments
State tax credits	Active in ~20 states	Homeowners who purchase or finance	$500–$5,000+ depending on state
Utility rebates	Active at ~30+ utilities	System owners — varies by utility	$200–$2,500+ typical
SRECs	Active in DC, IL, MA, MD, NJ, OH, PA	System owners in eligible states	$50–$350+ per SREC annually
Net metering	Active in 44 states + DC	Grid-tied system owners	Varies — offsets consumption at credited rate
Property tax exemptions	Active in ~36 states	Homeowners	Exempts solar system value from property tax basis
Sales tax exemptions	Active in ~25 states	Purchasers of solar equipment	3%–9% of system cost

Sources: SEIA incentive database 2026; SEIA/Wood Mackenzie Year in Review March 2026; NuWatt Energy state analysis 2026; DSIRE (Database of State Incentives for Renewables and Efficiency); NJ SREC market data; Mass Save 2026

Key Details

The most valuable remaining federal benefit is indirect — Lease and PPA providers claim the Section 48E commercial ITC at 30% of installed system cost and pass it through as lower monthly payments. In 2026 this makes lease/PPA pricing more competitive relative to loan ownership than at any prior point — particularly in states without strong state-level rebates.
New Jersey has the strongest state incentive package in 2026 — $7,200 average rebate on an 8 kW system (Successor Solar Incentive Program). Full retail net metering. No sales tax on solar equipment. Property tax exemption. SRECs available. NJ ranks as the most incentive-rich state for 2026 solar buyers.
Massachusetts offers multiple stackable programs — SMART (Solar Massachusetts Renewable Target) program pays system owners per kWh exported, locked in for 10 years. Full retail net metering. MassSave 0% HEAT Loan for income-qualified buyers. $1,000 state tax credit. No state sales tax on solar equipment.
SREC income generates $500–$3,500+ per year — In New Jersey, Maryland, Illinois, Ohio, Pennsylvania, Massachusetts, and Washington DC, homeowners receive Solar Renewable Energy Certificates for electricity generated. One SREC = 1 MWh produced. A 7 kW system generates approximately 7–10 SRECs per year. SREC market prices fluctuate quarterly.
Property tax exemptions are underused — 36 states exempt the added value of solar from property tax assessments. Solar adds ~4% to home value on a $500,000 home — $20,000. Without the exemption, that would increase annual property taxes by $200–$500 depending on local mill rates.
Utility rebates are first-come, first-served — Most utility rebate programs have annual caps that close in the first weeks of the year. Check with your utility before installation — some programs close within days of opening.

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What Solar Incentives Are Still Available in 2026?

Full Incentive Landscape — 2026

Key Details

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