Solar Incentives in 2026: What You Can Still Get

The incentive picture changed sharply in 2026 with the end of the federal purchase credit. But solar incentives are far from gone — they’ve just shifted. Here’s what’s actually available now.

1. Federal: the purchase credit ended (but TPO survives)

The 30% Residential Clean Energy Credit (Section 25D) for systems you buy expired December 31, 2025. A 2026 purchase doesn’t get it. The full story: the federal solar tax credit ending.

However, the commercial credit (Section 48E) that funds leases and PPAs remains — the provider claims it and lowers your payment. As of 2026 this runs through at least 2027. So a federal benefit still reaches homeowners, indirectly, via third-party ownership. See lease vs buy vs PPA.

2. State and local incentives (still very real)

These are separate from the federal credit and vary widely:

State tax credits — some states offer their own income-tax credit.
Rebates — upfront cash from a state agency or utility, sometimes per-watt.
Property/sales tax exemptions — many states exempt solar from added property tax or sales tax.
Low-income and specialty programs — targeted help in some states.

Because these change often and differ by state, county, and utility, check your specific area — see how to find solar incentives in your state.

3. SRECs (where they exist)

In a handful of states, you earn Solar Renewable Energy Certificates — one per 1,000 kWh produced — which you can sell. Where active (e.g. parts of the Northeast and Mid-Atlantic), SRECs can add meaningful income; elsewhere they don’t exist.

4. Net metering

Not a “rebate,” but it directly affects your savings: it’s how your utility credits the surplus power you export. Generous (retail) net metering is a major benefit; net-billing regimes like NEM 3.0 pay much less. Always confirm your utility’s current rules.

How to stack them

Start with your state/utility programs (rebates, tax credits, exemptions).
Check whether SRECs exist where you live.
Confirm your net metering terms.
If you can’t use a tax credit yourself, weigh a lease/PPA so the provider’s 48E credit lowers your cost.

Bottom line

In 2026 the headline federal purchase credit is gone, but state rebates, tax exemptions, SRECs, net metering, and the lease/PPA federal credit still shape the deal — often substantially. Incentives are intensely local, so verify yours before deciding whether solar is worth it.

Policy snapshot as of June 2026 — incentives change frequently. Verify current programs for your state and utility. Not tax advice.