Did the federal solar tax credit expire?

Yes — the 30% residential solar tax credit (Section 25D) expired December 31, 2025 under the One Big Beautiful Bill. Homeowners paying cash or using a loan can no longer claim it. State credits, utility rebates, and net metering still apply.

A Solar Renewable Energy Certificate (SREC) represents 1 MWh of solar produced. States like NJ, MA, MD, PA, and IL require utilities to buy SRECs from homeowners. One SREC can be worth $50–$400.

Solar Incentives by State in 2026

Q: What solar incentives are still available in 2026?

State tax credits (up to 25–35%), property tax exemptions, sales tax exemptions, utility rebates, SREC income, and net metering all remain available in qualifying states. Combined, these can offset thousands of dollars.

Q: What is net metering?

Net metering credits solar owners at the retail electricity rate for excess power sent to the grid. Available in 40+ US states.

State credits, property tax exemptions, utility rebates, and net metering still apply across all 50 states — and can cut your solar cost by thousands. Find your state below.

Federal tax credit update: The 30% residential solar tax credit (Section 25D) expired on December 31, 2025 under the One Big Beautiful Bill. Cash and loan purchases no longer qualify. State and utility incentives below remain in effect.

What Solar Incentives Are Still Available in 2026?

🏛️

State Tax Credits

Up to 25–35% in states like Arizona, New York, and South Carolina.

🏠

Property Tax Exemption

Solar-added home value excluded from property tax in 30+ states.

🛒

Sales Tax Exemption

Solar equipment sales-tax free in 20+ states — saves hundreds upfront.

⚡

Net Metering

Earn bill credits for excess solar sent to the grid in 40+ states.

States with Solar Tax Credits (2026)

Arizona

0% credit

Arizona state income tax credit. State-only — federal ITC expired 2025.

Hawaii

0% credit

Hawaii state income tax credit. State-only — federal ITC expired 2025.

Iowa

1% credit

Iowa state income tax credit. State-only — federal ITC expired 2025.

Louisiana

1% credit

Louisiana state income tax credit. State-only — federal ITC expired 2025.

Massachusetts

0% credit

Massachusetts state income tax credit. State-only — federal ITC expired 2025.

New Mexico

0% credit

New Mexico state income tax credit. State-only — federal ITC expired 2025.

New York

0% credit

New York state income tax credit. State-only — federal ITC expired 2025.

South Carolina

0% credit

South Carolina state income tax credit. State-only — federal ITC expired 2025.

Utah

0% credit

Utah state income tax credit. State-only — federal ITC expired 2025.

All 50 States — Incentive Overview

State	Rate (¢/kWh)	State Credit	Net Metering	SREC
Alabama	16.06¢	None	Full retail ✓	—
Alaska	25.52¢	None	Full retail ✓	—
Arizona	15.61¢	None	Full retail ✓	—
Arkansas	12.35¢	None	Full retail ✓	—
California	30.29¢	None	NEM 3.0	—
Colorado	16.44¢	None	Full retail ✓	—
Connecticut	28.3¢	None	Full retail ✓	—
Delaware	16.51¢	None	Full retail ✓	Yes ✓
Florida	15.92¢	None	Full retail ✓	—
Georgia	14.46¢	None	Full retail ✓	—
Hawaii	39.79¢	None	Grid-Supply	—
Idaho	12.07¢	None	Full retail ✓	—
Illinois	16.36¢	None	Full retail ✓	Yes ✓
Indiana	16.19¢	None	Full retail ✓	—
Iowa	12.83¢	1%	Full retail ✓	—
Kansas	14.29¢	None	Full retail ✓	—
Kentucky	14.27¢	None	Full retail ✓	—
Louisiana	12.46¢	1%	Full retail ✓	—
Maine	30.73¢	None	Full retail ✓	—
Maryland	20.61¢	None	Full retail ✓	Yes ✓
Massachusetts	31.16¢	None	Full retail ✓	Yes ✓
Michigan	19.52¢	None	Full retail ✓	—
Minnesota	14.98¢	None	Full retail ✓	—
Mississippi	14.24¢	None	Full retail ✓	—
Missouri	11.8¢	None	Full retail ✓	—
Montana	12.86¢	None	Full retail ✓	—
Nebraska	11.76¢	None	Full retail ✓	—
Nevada	13.98¢	None	Full retail ✓	—
New Hampshire	26.32¢	None	Full retail ✓	Yes ✓
New Jersey	23.13¢	None	Full retail ✓	Yes ✓
New Mexico	14.7¢	None	Full retail ✓	—
New York	28.37¢	None	Full retail ✓	—
North Carolina	13.68¢	None	Full retail ✓	—
North Dakota	10.92¢	None	Full retail ✓	—
Ohio	17.59¢	None	Full retail ✓	Yes ✓
Oklahoma	12.62¢	None	Full retail ✓	—
Oregon	14.66¢	None	Full retail ✓	—
Pennsylvania	20.19¢	None	Full retail ✓	Yes ✓
Rhode Island	30.14¢	None	Full retail ✓	—
South Carolina	15.41¢	None	Full retail ✓	—
South Dakota	13.6¢	None	Full retail ✓	—
Tennessee	13.1¢	None	Varies	—
Texas	15.69¢	None	Varies	—
	¢	None	—	—
Utah	12.88¢	None	Full retail ✓	—
Vermont	23.29¢	None	Full retail ✓	—
Virginia	15.87¢	None	Full retail ✓	Yes ✓
Washington	13.81¢	None	Full retail ✓	—
West Virginia	14.77¢	None	Full retail ✓	—
Wisconsin	18.2¢	None	Full retail ✓	—
Wyoming	12.85¢	None	Full retail ✓	—

Solar Incentives FAQ — 2026

Did the federal solar tax credit really expire?

Yes — the 30% residential Investment Tax Credit (Section 25D) expired on December 31, 2025. It was ended by the One Big Beautiful Bill signed on July 4, 2025. Homeowners who pay cash or use a loan for solar installation can no longer claim this credit on their federal taxes. The commercial solar credit (Section 48) and certain battery storage credits remain active for businesses.

What solar incentives can I still claim in 2026?

State tax credits (up to 25–35% in states like Arizona, New York, and South Carolina), property tax exemptions (solar-added home value excluded from taxes in 30+ states), sales tax exemptions (solar equipment tax-free in 20+ states), utility rebates (varies by utility company), SREC income (in NJ, MA, MD, PA, IL, OH, and others), and net metering bill credits — all remain available. Combined, these can still offset thousands of dollars.

Can I combine state credits with utility rebates?

Yes — state tax credits, utility rebates, property tax exemptions, and net metering are all stackable. They operate independently. A utility rebate reduces your upfront cost; a state tax credit reduces your state tax bill; property tax exemption saves you annually on your tax assessment. You can claim all that apply in your state simultaneously.

What is net metering and how does it work?

Net metering credits solar owners for excess electricity sent to the grid, typically at the retail electricity rate. When your panels produce more than you use (typically midday), the surplus earns credits on your utility bill. At night or on cloudy days, you draw from the grid and those credits offset the cost. 40+ states have net metering laws, though credit rates vary.

What is an SREC and which states have them?

A Solar Renewable Energy Certificate (SREC) represents 1 MWh of solar electricity produced. States with active SREC markets — including New Jersey, Massachusetts, Maryland, Pennsylvania, Illinois, Ohio, Virginia, and Delaware — require utilities to source a percentage of power from solar. Utilities buy SRECs from homeowners to meet these requirements. One SREC can be worth $50–$400 depending on the state and market conditions.