Solar incentives
Solar incentives and rebates
The federal position with its dates, the four layers incentives come from, seven questions to ask about any program, and the guides and tools for each layer.
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Written by HyreSolar Research Desk Primary-source research and fact checking
The short answer
Solar incentives come in four layers: federal, state, utility and local, each run by a different body. The 30% federal residential credit, Section 25D, ended for expenditures after December 31, 2025. State, utility and local programs exist in some places, each with its own rules and dates.
Check each layer with the body that runs it, and ask a tax professional what you qualify for.
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Has the federal residential solar credit ended?
Yes. Section 25D, the 30% residential clean energy credit, was terminated for expenditures made after December 31, 2025. It did not phase down and it was not left to lapse: the 2025 budget act struck the end date and deleted the scheduled step-downs to 26% and 22%.
A proposal, savings estimate or article that subtracts 30% from an owner’s price is working from rules that no longer apply. Leases and power purchase agreements sit under Section 48E, a business credit claimed by the owner of the equipment rather than by you.
Read what the statute says and why a lease still gets a credit.
Source: Public Law 119-21, § 70506, enacted July 4, 2025, read from the enrolled text at the Government Publishing Office against 26 U.S.C. § 25D (2024 edition). Read September 3, 2026.
Where do solar incentives come from?
Solar incentives come from four places, each with its own rules, dates and way of running out. Eligibility for one tells you nothing about the others.
Federal: Congress, through the IRS
Tax credits claimed on your federal return. Section 25D ended for expenditures after December 31, 2025. Section 48E continues for third-party-owned systems on its own timetable.
Verify with: the statute and IRS guidance. Our two federal pages cite the enacted text.
State: legislature, energy office or revenue department
Income tax credits, rebates, sales and property tax exemptions, and performance payments. Some states offer none; some stack several programs.
Verify with: your state energy office and revenue department. A program with an annual budget can run out before the year ends.
Utility: your electricity provider
Rebates, performance payments, battery programs and demand response. The utility sets these, so neighbors on different utilities can face different offers. Cooperatives and municipal utilities set their own terms.
Verify with: your utility, by name, in writing.
Local: county, city or municipality
Permit fee waivers, small rebates, expedited permitting and property tax arrangements. Small in dollars, and faster permitting can be worth more in time.
Verify with: your local building department and county assessor.
What should I ask about any solar incentive?
Ask these about every program a salesperson includes in a savings figure.
A credit reduces tax you owe, later. A rebate reduces what you pay, sometimes at signing. The cash-flow effect differs.
A non-refundable credit is worth nothing beyond the tax you owe. A tax professional can tell you where you stand.
Some programs bind on contract signature, some on the expenditure, some on the date the system is energized.
A rebate program can exhaust its annual allocation and close before the year ends.
Under a lease or PPA the third party owns the equipment and claims the credit. Whether any value reaches you depends on the contract.
Some programs require specific certifications, domestic content or an approved installer list.
Some incentives carry a clawback or a holding period. Ask before signing, not after listing.
Why is there no table of state and utility programs here?
We could not keep one true. State budgets run out mid-year, utilities close programs at short notice, and a table that is partly out of date reads as current to whoever finds it.
The incentive finder filters by location. Confirm anything it shows with the body that runs the program before you count on it.
Federal
Tax credits, and the dates attached to them.
Export compensation
What the utility pays for the electricity you send back.
State and local
Property tax, sales tax and access rights vary state by state.
Find what applies to you
Filtered by location rather than listed nationally.
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Questions
Is the 30% federal solar tax credit still available?
Why do leased systems still get a federal credit?
How do I find out what incentives apply where I live?
Do incentives come off my quote automatically?
Can an installer guarantee I will get an incentive?
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HyreSolar Research
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HyreSolar is an independent solar information site. We do not install, finance, maintain or service solar systems, and nothing here is tax, legal or financial advice. Figures and rules vary by location, utility, system design and your own circumstances.