Updated September 27, 2026. This article replaces earlier guidance that described homeowner federal solar credits continuing through 2033. Those dates no longer apply.
What changed for homeowner solar and battery projects?
The IRS states that the Residential Clean Energy Credit under Section 25D is not available for property placed in service after December 31, 2025. A new homeowner-owned solar or battery project placed in service in 2026 should not be presented with a 30% federal residential credit.
Qualifying installations completed in an earlier eligible year involve different filing questions. Consult your tax professional about your specific installation, records, and any unused credit. See the IRS Residential Clean Energy Credit guidance.
Evaluate the project using today’s assumptions
Your proposal should separate the installed price, financing costs, estimated electricity production, utility bill effects, and any individually verified incentives. An incentive should not be counted merely because an older article mentions it.
- Ownership: A cash purchase, loan, lease, and power purchase agreement create different obligations. Confirm who owns the equipment and which party may receive any applicable benefit.
- Utility and location: Identify the serving utility and the programs available for the specific property.
- Project timing: Confirm application, approval, and completion requirements before including a program in the financial comparison.
- Backup goals: Evaluate storage capacity and supported loads separately from projected bill savings.
Keep residential and business incentives separate
The end of the homeowner Section 25D credit does not establish the tax treatment of a business-owned or third-party-owned project. Those projects require their own eligibility and tax review. This article does not promise a commercial credit or a lease-related homeowner credit.
Plan a system around your home
BD Electrical & Solar can review your electric bill, property, existing equipment, and backup priorities to develop a project-specific assessment. We identify the assumptions behind a proposal so you can compare options clearly.
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Incentive eligibility depends on the project and rules in effect. Confirm tax treatment with your tax adviser and program requirements with the administering organization.