Life After the 30% Solar Tax Credit
The federal residential solar credit (Section 25D) expired on December 31, 2025. For a cash buyer it's now worth $0 — which adds a median of ~3.1 years to solar payback. Toggle between the old credit and the 2026 reality, then click your state.
Cash payback
- Under 8 yr
- 8–10 yr
- 10–12 yr
- 12–15 yr
- 15+ yr / never
Frequently asked questions
- What happened to the solar tax credit in 2026?
- The 30% federal Residential Clean Energy Credit (Section 25D) expired on December 31, 2025. For a cash or loan purchase placed in service in 2026 or later, the federal credit is $0 — so the net cost now equals the gross cost.
- How much longer is solar payback without the credit?
- Losing 30% of the system cost typically adds roughly 3–5 years to a cash payback, depending on your electricity rate, sun, and net-metering rules. In high-rate, sunny states solar still pays off; in low-rate or low-sun states the math is now much tighter.
- Is there any way to still get the credit in 2026?
- Not for owners. But a lease or PPA provider owns the system and can claim the commercial credit (Section 48E), which it may pass through as a lower rate — so $0-down third-party offers are more common now.
Solar wasn't the only casualty: the same law ended the 25C heat-pump credit — 30% back, up to $2,000 — on the same day. That story, and what still pays for heating and cooling in 2026, is in the heat-pump tax credit, explained.
Payback for a $150/mo cash purchase · data updated June 30, 2026