United States Solar Incentives, Grants & Rebates (2026)

The Federal Residential Credit (25D) Has Ended

For nearly two decades the federal solar story was the Investment Tax Credit. That chapter closed when Public Law 119-21 (the "One Big Beautiful Bill," signed July 4, 2025) terminated the Section 25D Residential Clean Energy Credit for expenditures made after December 31, 2025 — with no phase-out period. Homeowners who paid for systems placed in service through the end of 2025 can still claim that credit on their 2025 returns, but new cash or loan purchases in 2026 receive no federal residential credit.

The Lease / PPA Path (Section 48E)

The business-claimed clean-electricity credit (48E) remains available for third-party-owned residential systems — leases, PPAs, and prepaid solar — generally through 2027 for projects meeting construction-start deadlines. In these arrangements the solar provider owns the system and claims the credit, and competitive markets typically pass much of that value through as lower lease or PPA rates. If federal value matters to your project economics in 2026, this is the remaining route.

State and Local Rebates and Incentives

Many states, municipalities, and utilities offer their own rebates, grants, and performance incentives — and these are now the headline numbers for most homeowners. Amounts and eligibility vary widely by location and change often; check your state energy office and utility before purchasing.

Utility Net Metering

Net metering allows homeowners to sell excess solar energy back to the utility grid, offsetting electricity used when the panels aren't generating. Compensation rates vary by state and utility (some have moved to "net billing" at lower export rates), so the policy in your service territory materially affects payback.

Solar Renewable Energy Credits (SRECs)

SRECs are tradable certificates representing the environmental attributes of the solar energy you generate. In states with SREC markets, homeowners can sell certificates to utilities that must meet renewable-portfolio mandates — an ongoing revenue stream on top of bill savings.

Property Tax Exemptions

Many states exempt the added home value of a solar installation from property-tax assessment, so your investment doesn't raise your tax bill even as it raises your resale value.

USDA and HUD Programs

• USDA Rural Energy for America Program (REAP): guaranteed loans and grants for renewable-energy projects, including solar, for agricultural producers and rural small businesses.
• HUD energy-related assistance: programs such as Community Development Block Grants and Energy Efficient Mortgages can support solar in affordable-housing and single-family contexts.

Why the Roof Still Decides the Math

With the federal residential credit gone, the economics of solar depend more than ever on lifetime cost — and the single largest avoidable lifetime cost is removing and reinstalling an array to replace the roof beneath it. An Interlock® lifetime aluminum roof eliminates that line item entirely: install once, harvest without interruption.

This page is general information, not tax advice. Incentive programs change frequently — confirm current details with the administering agency or a tax professional.