The homeowner solar tax credit is gone. Here’s what you actually have in 2026.

The 30% credit for buying solar ended December 31, 2025. Leases and PPAs still carry a federal credit, but it goes to the company. Here’s how to think about it.

For almost twenty years, homeowners who bought solar could take 30% of the cost off their federal taxes. That credit, Section 25D, ended on December 31, 2025. Systems a homeowner buys in 2026 get no federal credit.

Why “$0-down” ads are everywhere

Leased and PPA systems are owned by the solar company, so they count as business property. The company can still claim the commercial credit, Section 48E, for projects that began construction by July 4, 2026 or are placed in service by the end of 2027. That’s why third-party offers have surged.

The key pointThe credit is still being paid. It goes to the company. How much of it shows up in your rate is set by your contract, not by law.

Owning still wins more often than you’d think

With a lease or PPA you pay the company’s profit and financing cost for 20 to 25 years, often with a yearly escalator of about 1–3%. With ownership you keep every kWh, every state incentive and the resale value. The way to close the gap left by the lost credit is to cut the cost itself:

Shrink the system first. Efficiency upgrades can remove panels and battery modules from the design.
Do some of the labor. Racking, panels and conduit are within reach for handy owners. Many hire an electrician only for the panel tie-in.
Buy the right equipment once. A design based on your real usage avoids oversizing.
Check state and utility programs. In New York, look at NY-Sun and the state credit.

When a lease can make sense

If you can’t finance a purchase, want no maintenance, and the contract has no escalator and a clear buyout, a lease or PPA can still lower your bill. Read the contract total, not the first-year payment.

Our free guide “Pay-Nothing” Solar Costs a Lot More Than You Think walks through the 25-year math for six ways to pay.

Quick answers

Can I get the 30% solar tax credit if I buy in 2026?

No. The residential credit (Section 25D) ended for expenditures after December 31, 2025.

Do leases still get a tax credit?

The company that owns a leased or PPA system can claim the commercial 48E credit if the project meets its timing and other rules. Whether that reaches you depends on your contract.