☀SolarSavingsMath

Solar Tax Credit Calculator (2026 Update)

Find out whether your installation still qualifies for a federal credit, what state credits you can stack, and how any carryforward plays out.

Important — the law changed: The 30% federal Residential Clean Energy Credit (Section 25D) ended for installations completed after December 31, 2025 (One Big Beautiful Bill Act, July 2025). Systems finished in 2026 or later get $0 federal homeowner credit. What changed →
For estimated installed cost and any state-level credits.
Typical US home: 6-10 kW.
Batteries ≥3 kWh qualified only if installed by Dec 31, 2025.
Total federal income tax owed (line 24 on Form 1040). Not refund or withholding.
The IRS uses the date installation was completed — not when you paid or signed.

Defaults from state averages — override if you have quotes.

SEIA/Wood Mackenzie state averages.
2026 average $850-$1,100/kWh installed.
NY 25%, SC 25%, HI 35%, MA 15%, NM 10%. Most states $0. Verify on DSIRE.
NY max $5,000; SC max $3,500. 0 = no cap.
Enter your system size to see your tax credit.
Solar system cost (gross)—
Battery storage cost—
Total installed cost—
Federal credit (Section 25D)—
State credit—
Total tax credits available—
Net cost after all credits—
Want to see total 25-year savings and payback?

Use the Solar Payback Calculator → to model full lifetime ROI.

Where the federal solar tax credit stands in 2026

For years the Residential Clean Energy Credit (Section 25D) gave homeowners a 30% dollar-for-dollar credit on solar and battery installations. The Inflation Reduction Act had scheduled it through 2032 — but the One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025) ended it for any expenditure made after December 31, 2025. There was no phase-down.

The IRS treats an expenditure as made when the original installation is completed. So a deposit or full payment in 2025 does not help if the system was finished in 2026.

If your system was completed by December 31, 2025

If your system is completed in 2026 or later

State-level solar tax credits worth knowing

A handful of states still offer their own income tax credit, and these continue to apply after the federal credit ended. Commonly cited programs (confirm current rules before relying on them):

Many other states offer property tax exemptions, sales tax exemptions, or net metering instead of (or in addition to) income tax credits. Always check DSIRE for your specific state and utility.

FAQ

Is there a federal solar tax credit in 2026?

Not for homeowners buying their own system. The Section 25D credit ended for expenditures made after December 31, 2025.

I paid in 2025 but my system was finished in 2026. Do I qualify?

No. The IRS treats the expenditure as made when installation is completed, so a 2026 completion date means no federal credit.

What if my 2025 credit is bigger than my tax bill?

The credit is non-refundable, but the unused portion carries forward to future tax years. For example, a $9,000 credit against $4,500 of tax liability means $4,500 used in 2025 and $4,500 carried into 2026.

Do I have to itemize to claim it?

No. It is a credit claimed on Form 5695, whether you itemize or take the standard deduction.

Can I get a credit if I lease the panels?

You personally cannot — the system owner claims any credit. Leasing companies may still qualify for the commercial Section 48E credit on projects meeting its 2026–2027 deadlines, which can lower lease or PPA pricing.

Primary sources