Updated for the 2026 tax credit changes

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Update for 2026

The 30% federal solar tax credit has ended for homeowners

If you buy a solar system with cash or a loan, you can no longer claim the federal Residential Clean Energy Credit unless the installation was finished by December 31, 2025. Congress ended it early in the One Big Beautiful Bill Act, signed in July 2025.

Leases and power purchase agreements work differently. The company that owns the panels may still be able to claim a business tax credit, and some of that can show up in the price you’re offered. Many states and utilities also still run their own rebate programs.

Read more about rebates and incentives →

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About Solar Melon

Solar Melon started in 2017 to answer the questions people ask before going solar. Everything here is general information, not financial or tax advice. Incentives and utility rules change often, so check the current rules for your state and utility before you decide.

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