The Short Answer
The 30% federal tax credit for home solar is dead. If your system goes into service in 2026 or later, you get 0%. Not 30%. Not 26%. Zero.
Many solar companies are still advertising the credit like nothing changed. That is not honest. This page tells you exactly what happened, who can still claim the credit, and what savings are actually left.
What Exactly Ended
For years, Section 25D of the tax code gave homeowners a tax credit worth 30% of the cost of a home solar system. On a $17,000 system, that was a $5,100 credit.
The One Big Beautiful Bill Act, signed on July 4, 2025, ended that credit. The rule is simple: home solar systems placed in service after December 31, 2025, do not qualify. There is no phase-down. There is no partial credit. It went from 30% to 0% overnight.
Who Can Still Claim the 30%
There is one group of people who still get the credit: homeowners whose systems were completed and placed in service in 2025. If your system was up and running in 2025, you can still claim the 30% credit on your 2025 tax return.
That is it. If your system was not finished in 2025, the credit does not apply to you. It does not matter when you signed the contract. It does not matter when you paid the deposit. What matters is when the system was placed in service.
Why Competitors Still Advertise the Dead Credit
Go search solar sites right now. Many still say things like get 30% off with the federal tax credit
or claim your tax credit before it is gone
— even though it is already gone.
Why? Because the credit was the easiest sales tool in the industry. It made the math look great. Some companies have not updated their websites. Others are hoping you will not notice.
Here is our promise: we will never advertise a tax credit that does not exist. If the rules change again, we will update this page. Honesty is our whole business model.
What Federal Savings Are Actually Left
There is one federal path still open: the Section 48E commercial clean electricity credit. But it does not go to homeowners directly. It goes to companies that own solar systems — which means it shows up in leases and power purchase agreements (PPAs).
Here is how it works. With a lease or PPA, a solar company owns the panels on your roof. The company claims the 48E credit. You get solar power at a set monthly rate, usually lower than your utility bill. You do not claim any credit yourself, because you do not own the system.
We explain the full trade-offs in our lease vs. buy guide and our financing guide.
Florida Breaks That Still Work
The federal credit is gone, but Florida still helps solar owners:
- No 6% sales tax on solar equipment.
- No added property tax on the value your panels add to your home (F.S. 196.182).
- 1:1 net metering — your utility credits you at the full retail rate for extra power you send to the grid. See our net metering guide.
Does Solar Still Make Sense Without the Credit?
Yes — but the math is different now. Without the credit, a typical Orlando system pays for itself in about 7 to 10 years instead of 5 to 7. Panels last 25 years or more. That still leaves 15-plus years of nearly free power.
What the end of the credit really killed is the no-brainer
pitch. Solar is now a solid long-term investment, not a subsidized slam dunk. Anyone who tells you otherwise is selling, not advising. Our payback guide shows the real numbers.
One Important Warning
We are solar experts, not tax experts. Tax law is complex, and your situation is your own. Talk to a qualified tax professional before claiming any credit or making decisions based on taxes. Nothing on this page is tax advice.
Ask Us Anything — We Will Tell You the Truth
Have questions about what the end of the credit means for your home? Fill out our contact form. We will give you straight answers — including telling you if solar does not make sense for you right now.