Solar Tax Credit 2026: What Changed and How to Claim It

The federal solar tax credit is still active in 2026. It is worth 30% of your total solar installation cost.

If you install a $25,000 solar system, you get $7,500 back in tax credits.

But there are rules. And changes. Here is what you need to know before you sign.

How the tax credit works

The Solar Investment Tax Credit (ITC) lets you deduct 30% of your solar installation cost from your federal income taxes. This includes:

• Solar panels
• Inverters
• Mounting hardware
• Installation labor
• Permits and fees
• Battery storage (if installed with the solar system)

It does not include:

• Roof replacement (unless required for solar installation)
• Electric vehicle chargers
• Home repairs unrelated to solar

Claiming the credit

You claim the credit on Form 5695 when you file your federal tax return. You need:

• Receipts from your installer
• Proof of payment
• The installer's EIN
• Date of installation

Keep all documentation. The IRS may audit solar tax credits.

Changes in 2026

The tax credit is still at 30% in 2026. It will begin phasing down in 2027:

• 2026: 30%
• 2027: 26%
• 2028: 22%
• 2029: Expires for residential (continues for commercial)

If you are planning to go solar, 2026 is your last year at the full 30% rate.

State incentives

Some states offer additional incentives on top of the federal credit. California offers battery rebates through the SGIP program. New York offers a state tax credit of up to $5,000. Check your state's programs.

The roof factor

Before you claim any tax credit, you need to know if your roof qualifies. A bad roof means a bad installation means wasted money.

SolrScan's $19 satellite analysis tells you:

• How many panels fit
• Whether shading will reduce output
• Your roof orientation
• Structural concerns

Run your analysis at solrscan.com

The bottom line

The 30% tax credit makes solar more affordable. But only if your roof can support the system. Check first. Save the credit for a system that actually works.

Do not wait until 2027 when the credit drops to 26%. If you are going solar, 2026 is the year.