United States

Solar tax credits and incentives

The 30% federal solar tax credit was repealed for installations after 2025. Sourced facts on what changed, what carries forward, and what's still unknown.

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Is there still a federal solar tax credit?

Not for new installations. The 30% federal Residential Clean Energy Credit under 26 U.S.C. §25D — sometimes called the ITC when discussing residential systems, though it's the same credit under one statute — was repealed by P.L. 119-21, enacted 2025-07-04. The credit "shall not apply with respect to any expenditures made after December 31, 2025." If you're evaluating a system now, the 30% federal credit is not part of the math.

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What if I already made a qualifying expenditure before the deadline?

The carryforward rules are unchanged — P.L. 119-21 didn't touch them. If your qualifying expenditure was made before the end of 2025, unused credit carries forward indefinitely until fully used, though it remains nonrefundable (it can't produce a refund beyond your tax liability). In tax year 2023, about 1.4 million taxpayers qualified for the credit; 46.5% used it entirely that year, 43.3% carried part forward, and 10.2% carried the entire amount forward.

What counts as the expenditure date — payment, or installation?

Installation, not payment. Under §25D(e)(8)(A), "an expenditure with respect to an item shall be treated as made when the original installation of the item is completed." The IRS is direct about the consequence: "if installation is completed after December 31, 2025, the expenditure will be treated as made after December 31, 2025," which blocks the credit even if you paid a deposit earlier in 2025. Paying before the deadline does not preserve the credit if installation finishes after it.

What about state incentives?

Not covered in this brief. State tax credits, rebates, performance incentives, SREC prices, and property or sales tax exemptions vary by state and require a separate, state-specific research pass this site hasn't completed yet. Do not assume any state-level incentive applies without checking your own state's current rules directly.

Sources

3 cited

Repeal and effective date: Congressional Research Service, Insight IN12611, Expiration and Carryforward Rules for the Residential Clean Energy Credit, 2025-09-25 (checked 2026-08-18).
IRS guidance on repeal and expenditure timing: IRS, Residential Clean Energy Credit; IRS FAQ FS-2025-05, 2025-08-21 (checked 2026-08-18).
Carryforward usage data: CRS Insight IN12611, 2025-09-25, citing preliminary IRS data (checked 2026-08-18).

How it works

From “is it worth it?” to a number you can check

Start with your power bill

The kilowatt-hours you used over the last year is the number every honest quote is built from. Without it, any price is a guess.

See what the roof can actually make

Pitch, orientation and shade decide how much of that usage a system can realistically cover. This is the step door-to-door pitches skip.

Put the quotes on one basis

Cash, loan and lease are three different products. Compare system size and total price first, then compare the financing separately.

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How we work

What to expect from this site

Every figure here carries its source and the date it was checked.

Answer first, then the working

Each page opens by answering its own question in a couple of sentences, then shows the arithmetic underneath for anyone who wants to check it.

Ranges, not one confident number

Solar pricing moves with the roof, the state, the utility and the financing. A single national figure fits almost nobody, so we publish the spread our sources support.

We say when the maths does not work

A shaded roof on a low tariff can be a poor buy. That is a legitimate answer to the question and you will find it here rather than a reason to keep reading.

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Questions

Frequently asked

The questions homeowners actually ask before they sign anything.

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Is the federal solar tax credit gone for good?

For any expenditure made after December 31, 2025, yes — P.L. 119-21 repealed it. The brief doesn't cover whether any future legislation might reinstate a credit; as of the sources checked, it applies to 2022 through 2025 expenditures only.

I paid a deposit in 2025 but installation finishes in 2026 — do I still get the credit?

No. The IRS is explicit that the expenditure date is tied to when installation is completed, not when you paid. A 2026 installation completion means no §25D credit, regardless of when you paid the deposit.

What's the ITC, and is it different from the residential credit?

For a residential system, "ITC" and the §25D residential credit refer to the same 30% credit — it's the same statute under two names. The distinction matters more for commercial/business-side credits, which are separate and out of scope for this brief.

Can I still use carryforward credit from a 2024 installation?

Yes — the carryforward provision is unchanged by the repeal. If your qualifying expenditure was made before the end of 2025, unused credit carries forward indefinitely until used, subject to it remaining nonrefundable.

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