Solar Tax Credit Calculator (2025 vs 2026 installs)
The 30% federal solar tax credit ended for systems installed after December 31, 2025. Check whether your install qualified, how much a 2025 install can still claim, and your true net cost for a 2026 install.
SCReviewed by Sarah Chen, Energy AnalystUpdated October 1, 2026Sources: DSIRE, NREL, IRS
Systems completed by Dec 31, 2025 still earn the 30% credit; 2026 installs do not. Photo: American Public Power Association / Unsplash
Updated October 2026 — federal credits have ended. The One Big Beautiful Bill Act (signed July 4, 2025) ended the 30% federal Residential Clean Energy Credit (25D: solar, batteries, geothermal) and the Energy Efficient Home Improvement Credit (25C: air-source heat pumps, up to $2,000) for anything installed after December 31, 2025. Systems completed by Dec 31, 2025 can still be claimed on a 2025 return. Any 30% or $2,000 figure on this page applies only to those installs — our calculators now default to $0 federal credit. What is still available in 2026 →
Quick answerThe 30% federal solar tax credit ended for systems installed after December 31, 2025. If your system was fully installed by that date you can still claim 30% of the eligible cost on your 2025 return (IRS Form 5695) — $6,000 on a $20,000 system. For 2026 installs the federal credit is $0, so state rebates, net metering and lease/PPA pricing now decide your payback.
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Eligible costs
The credit depends on when installation was completed, not when you signed or paid.
$
$
Labor, assembly, wiring, permit and inspection fees all qualify.
$
For 2025 installs, batteries 3 kWh and larger qualified, even if added after the panels.
$
Your federal solar tax credit
$0
credit ended for 2026 installs
Eligible cost
$20,000
Net after credit
$20,000
Credit rate
0%
For 2025 installs: non-refundable, unused amounts roll forward. Missed it? You can amend a 2025 return for up to 3 years. Confirm with a CPA.
How this calculator works
1
Add equipment cost
Panels, inverters, wiring and mounting hardware.
2
Add labor and permits
Installation labor, permitting and inspection fees counted as eligible for 2025 installs.
3
Add battery (optional)
For 2025 installs, storage of 3 kWh+ qualified, even if added later.
4
Pick your install date
Finished by Dec 31, 2025 = 30% credit. Finished in 2026 or later = $0 federal credit.
What happened to the 30% solar tax credit?
The federal Residential Clean Energy Credit (Section 25D, often called the solar ITC) was scheduled to stay at 30% through 2032. The One Big Beautiful Bill Act, signed July 4, 2025, cut that short: no credit is allowed for expenditures made after December 31, 2025. The IRS treats the expenditure as made when installation is completed, so a system signed in 2025 but finished in 2026 does not qualify.
Who can still claim it
Homeowners whose solar, battery (3 kWh+) or geothermal system was fully installed on or before Dec 31, 2025
Claim it on IRS Form 5695 with your 2025 federal return; eligible costs include panels, inverters, wiring, labor, permits and sales tax
Missed it? You can file an amended 2025 return (Form 1040-X), generally within three years
Unused credit from 2025 or earlier still carries forward to future tax years
What is left for 2026 installs
Without the federal credit, a typical $20,000 system costs the full $20,000 before state help. What still lowers the price: state rebates and tax credits, SREC income in states like Pennsylvania and New Jersey, property and sales tax exemptions, utility battery programs, and lease/PPA offers — the owner of a leased system may still use a commercial credit (Section 48E) for projects that begin construction by July 4, 2026 or are in service by the end of 2027.
Rule of thumb for 2026: get one cash quote and one lease/PPA quote, then compare 25-year cost in the Lease vs Buy Calculator.
Questions
Frequently asked questions
Is there a federal solar tax credit in 2026?
No. The 30% Residential Clean Energy Credit ended for systems installed after December 31, 2025, under the One Big Beautiful Bill Act signed July 4, 2025. Systems completed by that date can still be claimed on a 2025 return.
My installer signed me in 2025 but finished in 2026. Do I qualify?
No. The IRS treats the expenditure as made when installation is completed, so a system finished in 2026 does not qualify, even if you signed or paid a deposit in 2025.
How do I claim the credit for a 2025 install?
File IRS Form 5695 with your 2025 federal return. If you already filed without it, you can amend with Form 1040-X, generally within three years.
Is the solar tax credit refundable?
No. It is non-refundable: it can cut your federal tax to zero but is not paid as cash. Unused amounts carry forward to future years.
Can a lease or PPA still get a federal credit?
The homeowner cannot, but the company that owns a leased or PPA system may claim a commercial credit (Section 48E) for projects that begin construction by July 4, 2026 or are placed in service by the end of 2027. Some pass part of that through as a lower rate.
What incentives are left for solar in 2026?
State rebates and tax credits, SREC income in some states, property and sales tax exemptions, net metering, and utility battery programs. Check your state on our Solar Incentives by State page or on DSIRE.
Sarah has spent 12 years modeling US residential solar economics, including 4 years contributing to NREL's Distributed Generation Market Demand model. She holds a BS in Mechanical Engineering from UC Berkeley and reviews every calculator and state guide on GreenCalcs against current IRS, DSIRE and EIA data. Read our methodology →
