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Solar Incentives in 2026: What's Still Available

Solar incentives changed significantly at the start of 2026. The headline change is that the long-standing federal tax credit for homeowners who buy their system has ended — but a range of state, local, and utility programs remain. Here is what is still on the table.

The federal tax credit has ended for buyers

The 30% federal residential solar tax credit (the Residential Clean Energy Credit) ended on December 31, 2025 under the One Big Beautiful Bill Act. If you buy a system in 2026, you can no longer claim it. Systems installed and running by the end of 2025 still qualified.

One exception remains: leased and PPA (third-party-owned) systems can still access a federal credit through the end of 2027. You do not claim it yourself — the company that owns the system does — but it may be passed on to you as lower payments. See buying vs leasing solar for how that affects the decision.

Net metering

Net metering is often the most valuable ongoing incentive. It credits you on your utility bill for surplus electricity your panels send to the grid. The catch is that it varies: some utilities still offer 1:1 net metering (full retail credit), while others have moved to net billing that credits exports at a lower rate. Because it directly affects your savings, it is worth checking exactly how your utility handles it.

State and local programs

Many states, cities, and utilities still offer their own incentives, which can include:

• State tax credits — several states (such as New York, Arizona, and South Carolina) offer their own solar tax credit, separate from the federal one.
• Rebates — upfront cash back from a state agency or utility.
• Solar Renewable Energy Credits (SRECs) — in some states you earn tradable credits for the energy you produce.
• Sales and property tax exemptions — many states waive sales tax on equipment and leave the added home value out of your property tax.

These vary widely by location. Our solar by state pages outline what to look for in different states, and the calculator lets you enter any incentive amount you qualify for.

How to find what you qualify for

Because programs change and differ from place to place, check current offerings with your state energy office, your utility, and a reputable national incentives database before you budget. A local installer can also tell you what applies in your area.

To see how incentives affect your numbers, use the free SunWise solar calculator — it lets you enter an incentive amount and shows the effect on your costs and payback. You may also want to read whether solar is worth it now.