The Federal Solar & Efficiency Credits Have Expired
As of December 31, 2025, both the Residential Clean Energy Credit (Section 25D) and the Energy Efficient Home Improvement Credit (Section 25C) have expired. The One Big Beautiful Bill Act, signed July 4, 2025, terminated both credits seven years ahead of their original schedule.
For the 2026 tax year, homeowners making energy-efficient improvements or installing clean energy property generally cannot claim these specific federal tax credits. If you saw older guidance promising 30% back, it is now out of date.
| Credit | What It Covered | Was Worth | Status |
|---|---|---|---|
| Section 25D — Residential Clean Energy Credit | Solar, wind, geothermal, battery storage | 30% of cost | Expired 12/31/2025 |
| Section 25C — Energy Efficient Home Improvement Credit | Windows, doors, insulation, heat pumps, HVAC | 30% (with caps) | Expired 12/31/2025 |
What Incentives Still Work in 2026–2027
The federal tax credits are gone, but several programs remain. These are administered by states and utilities rather than the IRS, so eligibility depends on where you live.
| Program | What It Offers | Learn More |
|---|---|---|
| State HOMES rebates (IRA-funded) | Whole-home efficiency rebates run by states — still funded and rolling out in many states. | Details → |
| State HEAR rebates (electrification) | Point-of-sale rebates for heat pumps, panels, wiring — income-qualified, state-administered. | Details → |
| Utility rebates | Local utilities still offer solar, heat-pump and efficiency rebates independent of federal credits. | Details → |
| State tax credits & incentives | Several states run their own solar and efficiency incentives that did not change. | Details → |
| Net metering | Where available, net metering still improves solar payback regardless of federal credits. | Details → |
Solar payback, recalculated
See if solar still pays off without the federal credit
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What This Means for Your Build or Upgrade
Without 30% federal support, payback lengthens. Rebuild the estimate around your electricity rate, sun exposure and local rebates.
HOMES/HEAR state rebates and utility programs can still meaningfully offset cost — they just aren't federal tax credits.
With efficiency credits gone, insulation and air-sealing still pay back on their own through lower bills — no credit needed.
Rolling solar into a construction or mortgage loan can beat a separate high-rate solar loan now that the credit is off the table.
Energy Planning Tools
Payback without the federal credit
Open →Rebate CalculatorFind rebates you still qualify for
Open →House Cost CalculatorBuild cost with energy upgrades
Open →Mortgage CalculatorRoll solar into your loan
Open →ROI CalculatorEnergy upgrade payback
Open →Affordability CalcWhat you can afford
Open →Frequently Asked Questions — Federal Solar Credit
Is the federal solar tax credit still available in 2026?
No. The federal Residential Clean Energy Credit (Section 25D), which gave homeowners 30% back on solar, wind, geothermal and battery storage, expired on December 31, 2025. The One Big Beautiful Bill Act, signed July 4, 2025, terminated it — along with the Energy Efficient Home Improvement Credit (25C) — seven years ahead of the original schedule. For the 2026 tax year, homeowners generally cannot claim these specific federal credits.
What happened to the 25C home improvement credit?
The Energy Efficient Home Improvement Credit (Section 25C) also ended on December 31, 2025. It had let homeowners deduct 30% of the cost of qualified upgrades like windows, doors, insulation, heat pumps and HVAC, subject to annual caps. Improvements placed in service in 2026 and later generally no longer qualify for this federal credit.
Why did the solar tax credit end early?
The credits were repealed by the One Big Beautiful Bill Act (H.R.1), signed into law July 4, 2025. The law terminated both 25D and 25C at the end of 2025, well before their previously scheduled expirations. This was a legislative policy change, not an IRS administrative decision.
What incentives can I still use for solar and efficiency in 2026?
Plenty — just not the federal tax credits. Many states are still rolling out IRA-funded HOMES and HEAR rebate programs (whole-home efficiency and electrification). Local utilities continue to offer their own solar, heat-pump and efficiency rebates. Several states run standalone solar and efficiency incentives, and net metering still improves solar economics where offered. Use our rebate calculator and state guides to find what applies to you.
Does it still make sense to install solar without the federal credit?
Often yes, but the math changed. Without the 30% federal credit, payback periods lengthen, so it comes down to your electricity rates, sun exposure, available state/utility rebates, and net-metering rules. In high-rate, high-sun states with strong local incentives, solar can still pay back well. Run your specific numbers in the solar calculator before deciding.
Plan around the change
Build Smart After the Credit Ended
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Get My Cost & Rebate Report →$19.99 one-time · Instant PDF · Updated for post-2025 incentive rules