Solar Incentives & Tax Credits
Federal residential solar credit: ended 31 December 2025
The 30% federal residential solar tax credit (Section 25D) was terminated by the One Big Beautiful Bill Act for systems placed in service after 31 December 2025. A home solar system purchased in 2026 does not qualify for any federal tax credit. Only systems fully installed and placed in service by 31 December 2025 could claim the 30% credit (paying a deposit earlier was not enough); any unused credit from a qualifying 2025 install can still be carried forward on future returns. The rebates below are what remain in 2026.
Net Metering
Your utility credits you for excess solar power sent to the grid. Available in 40+ states. Some states (like California NEM 3.0) have reduced rates. Check your utility's policy - it significantly affects ROI.
State Rebates & Credits
With the federal credit gone in 2026, state incentives now carry the economics. Many states offer their own rebates or tax credits. NY offers up to $5,000. MA has the SMART program. NJ has TRECs worth $90+ each. Check dsireusa.org for your state.
SRECs (Solar Renewable Energy Credits)
In some states (NJ, MA, DC, MD, PA, IL), you earn tradeable credits for every MWh your system produces. Can be worth $200-400/year in extra income.