Federal Solar Tax Credit 2026: The 30% Credit Ended. Here's What Still Applies
Federal solar tax credit 2026: 25D ended for systems finished after 2025. See who can still claim, carryforwards, leases, PPAs and state credits.
Check whether the federal Residential Clean Energy Credit (25D) applies to your solar or battery system, based on the year installation was completed, and see how much you can use this year and carry forward. As of October 2026, systems completed after December 31, 2025 do not qualify.
Results update as you type. Without JavaScript you see the worked example below.
A solar tax credit calculator applies the 25D rate for the year installation was completed to your qualified cost, then limits it to the tax you owe. With the defaults, a $24,000 system completed in 2026 gets $0, because as of October 2026 the credit ended for installations completed after December 31, 2025.
The results show the credit for this system, the credit rate, the amount used against this year's tax and the amount that carries forward. When there is credit to use, a year-by-year schedule (credit used and carried forward, assuming the same tax each year) and a stacked bar chart appear, with a CSV download. With the defaults there is nothing to schedule, so neither appears. The scenario table compares the same system completed in 2025 and in 2026.
Credit rate = 30% if completed 2022–2025; 26% for 2020–2021; 30% for 2019; 0% from 2026
Basis = qualified cost − utility rebates that reduce the cost
Credit = basis × credit rate
Available = credit + carryforward from earlier years
Used this year = min(available, federal income tax)
Carries forward = available − used this year
Assumptions that match the code:
Default inputs: completed 2026, $24,000 qualified cost, $0 rebates, $6,000 tax, no carryforward.
| Same $24,000 system | Federal credit | Net cost after credit |
|---|---|---|
| Completed in 2025 | $7,200 | $16,800 |
| Completed in 2026 | $0 | $24,000 |
Second example, a 2025 install with a large credit: completed 2025, $30,000 qualified cost, a $1,000 utility rebate, $4,000 of federal income tax.
Third case, a 2026 install with an old carryforward: completed 2026 with $2,500 of unused credit from an earlier system and $1,500 of tax. The new system earns nothing, but you use $1,500 of the old credit in 2026 and $1,000 in 2027.
If the result is $0, price the system without any federal credit and check whether state or utility incentives apply; our solar incentives by state guide covers what remains. Then use the solar panel cost calculator and solar payback calculator with the real net cost.
If you have a carryforward, make sure it is claimed on Form 5695 each year until it is used. Keep the contract, final invoice and the date the installer or inspector signed off as complete, since completion date is what decides eligibility. If a seller still advertises a 30% federal credit for a system finishing in 2026, treat that as a red flag and ask for the price without it. Our federal solar tax credit guide explains the rules in more detail.
This is an educational tool, not tax advice. It simplifies the tax-liability limit, ignores other credits that compete for the same tax, and does not cover business use, new construction timing or state credits. Confirm your situation with the current Form 5695 instructions or a tax professional.
Not for homeowners who buy a system completed in 2026. As of October 2026, P.L. 119-21, signed July 4, 2025, ended the 25D Residential Clean Energy Credit for expenditures made after December 31, 2025. Systems completed in 2022 through 2025 qualified at 30 percent, claimed on that year's return using Form 5695.
No. The IRS says an expenditure is treated as made when the original installation is completed, so a system paid for in 2025 but finished in 2026 does not qualify. Its FAQ answers this exact question with no. For a new home, the expenditure counts when you begin using the home.
Yes. The 2025 Form 5695 instructions say the form is used to carry the unused portion of the credit to 2026, and unused credit from earlier years can still be applied. Enter it as unused credit carried from earlier years; the calculator applies it against your tax even for a 2026 completion.
Usually. The IRS instructions say that if you received a utility subsidy for the system that was not included in your income, you must reduce your cost by that amount before figuring the credit, even if the subsidy went to your contractor. Enter such rebates in the advanced field.
For systems completed in 2022 through 2025, battery storage qualified if it had a capacity of at least 3 kWh, whether or not it was charged by solar. Batteries completed after 2025 are under the same cutoff as panels and do not qualify for 25D.
No. It can only reduce federal income tax you owe. If the credit is larger than your tax for the year, the unused part carries forward to the next year, which the calculator's year-by-year schedule shows.
The homeowner cannot claim 25D on a system someone else owns. The leasing company may claim the §48E business credit, subject to construction and placed-in-service deadlines and foreign-entity sourcing rules, and may reflect it in the price. Compare offers with the solar lease vs buy calculator.
Yes, if you have a carryforward, a large rebate, a home business or a new home. This calculator follows the general rules, but your return may involve limits and worksheets it does not model.
Federal solar tax credit 2026: 25D ended for systems finished after 2025. See who can still claim, carryforwards, leases, PPAs and state credits.
How much do solar panels cost in 2026? Real installed prices per watt from Berkeley Lab, costs by system size, battery add-ons, and why no federal credit now.
Solar lease vs PPA vs loan vs cash in 2026: how each works, 25-year costs, escalators, home-sale rules and what the end of the 25D credit changes.
Solar incentives by state for 2026: state tax credits, property tax exemptions, rebates, SRECs and the export rules that matter most now that 25D is gone.