Solar Tax Credit Calculator — 2026 Federal & State Incentives

The 30% federal solar credit expired at the end of 2025. This calculator gives you the honest 2026 number: what a system costs after the incentives that actually still exist where you live — not the old math half the internet is still quoting.

What changed with the federal solar tax credit

I put solar on my own roof back in 2019, claimed the 30% federal credit that spring, and I’ve tracked every kilowatt-hour since. So it’s strange to write this: if you’re buying solar in 2026, that credit I got is gone. The Residential Clean Energy Credit — Section 25D, if you want the IRS shorthand — expired on December 31, 2025. The One Big Beautiful Bill Act, signed in July 2025, ended it about seven years early, with no phase-down and no partial credit. Buy and install a system in 2026 with cash or a loan, and your federal credit is zero.

The incentive landscape changed everything, and that’s exactly why a lot of solar pages still running the “30% through 2032” line are wrong now. One detail that trips people up: what mattered for the deadline was the date your installation was completed, not when you signed a contract or put down a deposit. A system you paid a deposit on in late 2025 but finished in 2026 doesn’t qualify either.

The one federal path that’s still open in 2026

Here’s the math your installer might not lead with: the 30% didn’t disappear for leased systems. If you go with a solar lease or a power purchase agreement (PPA), the company that owns the panels claims a commercial version of the credit — Section 48E — and passes the savings to you through lower payments. That pathway is scheduled to run through the end of 2027.

So 2026 gives you a real fork in the road. Buy outright and you own the system free and clear, but you carry the full cost with no federal help. Lease it or sign a PPA and you give up ownership and the long-term upside, but you get $0 down and some of that federal money flowing back to you indirectly. Neither is automatically the right call — it depends on your tax situation, how long you’ll stay in the house, and your state’s incentives. The calculator above runs the purchase numbers; if you’re leaning toward a lease, have two or three installers quote both so you can compare apples to apples.

How to use this calculator

I kept this one simple on purpose. Enter your total solar system cost — everything in the installer’s quote: panels, inverters, mounting hardware, and labor, before any incentives. Then pick your state from the dropdown so it can pull in whatever state program applies to you. Hit “Calculate My Tax Credits” and you’ll get your federal credit (for a 2026 purchase, that reads $0 with a note that it expired), your state incentive, your total incentives, and your net cost after everything.

That net cost is the number I’d build your decision around. It’s what you’ll actually pay out of pocket for a system you own.

What your state still brings to the table

This is where 2026 gets more interesting than people expect, and it’s the part most of the doom-and-gloom coverage skips. State incentives didn’t go anywhere when the federal credit did, and in a lot of places they’re real money. They come in a few flavors. Some states run their own tax credit — New York, for instance, has long offered a percentage credit capped at a few thousand dollars. Some hand out rebates or grants up front. States like Texas and Florida exempt solar equipment from property and sales tax, which quietly saves more over the life of the system than people realize. California leans on net metering and its own rebate programs rather than a state tax credit, and states like New Jersey and Illinois run SREC programs where you earn ongoing income from certificates tied to the power your panels produce. I’ve broken down the full numbers for each of those states on their own pages. To see what applies where you are, select your state in the calculator above — and because these programs change, confirm the current terms with a local installer before you sign anything.

Is solar still worth it in 2026 without the federal credit?

Short version: for a lot of homeowners, yes — it just takes longer to pay back. I’ve been running 25-year ROI math on solar since before it was my job, and the federal credit was always a head start, not the whole race. What really drives your return is your local utility rate and how fast it’s climbing, and rates have been rising hard. Strip out the 30% and a cash purchase that used to pay back in around eight years might now land closer to eleven or twelve, depending on your state and utility. That’s slower, but you’re still looking at a system that produces for 25-plus years and a lifetime return that’s positive. Add a strong state incentive or net metering and that gap closes faster than the headlines suggest — and if a longer cash payback doesn’t fit your budget, the lease or PPA route gets you started with nothing down.

Frequently asked questions

I installed my system in 2025 — can I still claim the 30% credit?

Yes. The expiration applies to systems placed in service in 2026 and later. If your install was completed by December 31, 2025, you claim it on your 2025 federal return using IRS Form 5695. And if the credit is larger than your tax bill for the year, you don’t lose the extra — unused amounts carry forward to future tax years. That carryforward is one of the few pieces of the old credit that still matters in 2026.

Does the federal credit really not apply to a 2026 purchase?

Not for a system you buy with cash or a loan — that’s $0 federal, full stop. The only way to touch federal money on a 2026 install is through a third-party-owned lease or PPA, where the installer claims the commercial credit and passes part of it back to you. Don’t let an old calculator or outdated article talk you into expecting a 30% check that isn’t coming.

What if I’m choosing between buying and leasing?

Run it both ways before you commit. Buying means you own the system and keep all the long-term savings, but you carry the full cost with no federal credit in 2026. Leasing or a PPA means $0 down and some federal savings passed through your payments, but the leasing company owns the panels and keeps the credit. Your state incentives, your tax situation, and how long you plan to stay all tip the scale. Compare the net cost and the 25-year picture, not just the monthly payment.

Will the federal credit come back?

I won’t pretend to know what a future Congress does. As the law stands in 2026, the homeowner credit is gone and the leased-system pathway is scheduled to wind down after 2027. My honest advice is to plan around the rules that exist today — your state incentives and your utility rate — rather than betting on a credit that may or may not return. This is general information, not tax advice; check your specifics with a tax professional.