For a system you own, the federal 30% credit is gone: it ended for expenditures after December 31, 2025. What is left is state and utility help, such as New York's 25% credit (up to $5,000), Hawaii's 35% credit (up to $5,000), South Carolina's 25% credit, sales and property tax exemptions, and net metering where your state still requires it.
Federal 25D credit: $0 for systems finished after December 31, 2025 (IRS)
New York: 25% state credit up to $5,000, about $5,000 on a typical 8 kW system
Hawaii: 35% up to $5,000; South Carolina: 25% up to $3,500 a year
Florida: no 6% state sales tax on solar, about $1,350 on a typical job
Lease and PPA owners may still claim a business credit (48E)
Prices verified November 2026 · Cross-referenced against 42+ American pricing sources · See methodology
01 / PricesUSA · November 2026
What the main 2026 solar incentives are worth on an 8 kW system
Worked on the US 8 kW range of $18,350–$28,900 ($22,400 typical). State programs as listed in state incentive guides updated November 2026; program rules change, so confirm before you sign.
What the main 2026 solar incentives are worth on an 8 kW systemOne-time, low to high with the typical price marked.
New York state credit, 25% up to $5,000 (8 kW)$5,000$4,600–$5,000
Hawaii state credit, 35% up to $5,000 (8 kW)$5,000$5,000–$5,000
Florida 6% state sales tax not charged (8 kW)$1,350$1,100–$1,750
Massachusetts state credit, 15% up to $1,000$1,000$1,000–$1,000
Arizona state credit, 25% up to $1,000$1,000$1,000–$1,000
$0$2,000$4,000$6,000
Job
Low
Typical
High
Federal homeowner credit (25D), system finished in 2026per system
$0
$0
$0
New York state credit, 25% up to $5,000 (8 kW)one-time
$4,600
$5,000
$5,000
Hawaii state credit, 35% up to $5,000 (8 kW)one-time
$5,000
$5,000
$5,000
South Carolina state credit, 25% (up to $3,500 a year)over 1–2 years
$4,600
$5,600
$7,250
Massachusetts state credit, 15% up to $1,000one-time
$1,000
$1,000
$1,000
Arizona state credit, 25% up to $1,000one-time
$1,000
$1,000
$1,000
Florida 6% state sales tax not charged (8 kW)one-time
$1,100
$1,350
$1,750
Massachusetts SMART payments at 3 cents a kWh (8 kW)per year
$300
$330
$350
New Jersey ADI payments at $77 per MWh (8 kW, registered since July 27, 2026)per year
$770
$840
$900
US prices, November 2026. Low is a simple job in a low-cost area; high is a bigger job or a high-cost city.
02 / By city195 cities priced
Does solar incentives in 2026 change by city?
Yes. The same job costs more where labor and rent cost more. Here's how solar panel prices in the biggest US metros compare with the US typical of $22400.
Solar prices in the 12 biggest US metrosEach city's typical solar panel price against the US typical of $22,400.
The Residential Clean Energy Credit (Section 25D) paid 30% of the cost of solar, batteries and solar water heaters. Under the tax law signed July 4, 2025, it is not allowed for any expenditure made after December 31, 2025. The IRS treats the expenditure as made when installation is complete, so a system finished in 2026 gets nothing, even if you paid a deposit in 2025 (IRS fact sheet FS-2025-05, August 21, 2025).
If your system was finished in 2025, you can still claim the credit on your 2025 tax return.
02
Leases and PPAs: the business credit
A solar company that owns the panels on your roof (a lease or PPA) claims a different credit, Section 48E. Under the 2025 law, solar projects must have started construction by July 4, 2026 or be placed in service by December 31, 2027 to qualify. The credit can be worth up to 30% to the owner.
EnergySage reported in November 2026 that the share of installers quoting leases or PPAs rose from about 14% to about 41% in the first half of 2026. Compare the 25-year cost against buying, and ask whether any state credit goes to you or to the owner.
03
State credits and rebates still listed
New York lists a 25% state credit up to $5,000; its NY-Sun residential rebate blocks were full in September 2026. Hawaii lists 35% up to $5,000. South Carolina lists 25%, up to $3,500 a year with 10 years to use the rest. Massachusetts lists 15% up to $1,000 and Arizona 25% up to $1,000. Massachusetts SMART pays a fixed adder for 20 years (3 cents a kWh base for homes in 2026), and New Jersey's ADI program pays $77 per MWh for 15 years on home systems registered since July 27, 2026 ($85 before).
Illinois Shines pays upfront for a system's renewable energy credits, and Maryland owners can sell solar renewable energy credits. Austin Energy and CPS Energy in Texas run their own rebates; check the current amounts.
04
Sales and property tax breaks
Florida exempts solar from its 6% state sales tax and keeps the added value off your property tax (authorized through 2037). Arizona, New Jersey and Maryland exempt solar from sales and property tax; Texas exempts the added value from property tax if you file Form 50-123; New York offers a 15-year and Massachusetts a 20-year property tax exemption. California's property tax exclusion for new solar covers systems finished by December 31, 2026.
05
Net metering: the incentive nobody calls one
How your utility credits exported power often matters more than any rebate. Florida's investor-owned utilities must credit exports at the full retail rate. California's big three utilities moved new customers to the Solar Billing Plan for applications after April 14, 2023, with export credits that change by the hour. Texas has no statewide rule. Ask your utility for its current export rate in writing.
06
Compare
Federal home energy credits: where they stand in November 2026
Every federal credit a homeowner could claim for solar, batteries or related upgrades has now ended. Here are the dates, from IRS guidance.
Credit
What it paid for
Status
Residential Clean Energy Credit (25D)
Solar panels, home batteries, solar water heaters, geothermal
Ended for expenditures after Dec 31, 2025. The cost counts when installation is complete.
Energy Efficient Home Improvement Credit (25C)
Heat pumps, insulation, windows, some panel upgrades
Ended for property placed in service after Dec 31, 2025.
EV charger credit (30C)
Home EV chargers in eligible areas
Ended for property placed in service after June 30, 2026.
Unused 25D credit from 2025 or earlier
Credit you could not use because your tax was too low
Can still be carried forward to later tax years.
Business credit (48E)
Solar owned by a company, such as a lease or PPA
Open to the owner only. Construction must have begun by July 4, 2026, or the system must be in service by Dec 31, 2027.
Some older web pages still show the 30% credit running to 2032. That schedule was replaced by the law signed July 4, 2025.
07
Step by step
Find every incentive for your address
Programs change often. This takes about 30 minutes and saves you from trusting a sales pitch.
Search DSIREGo to dsireusa.org and pick your state. It lists state, utility and local programs, with links to the agency that runs each one.
Check your state tax agencyIf your state has a solar credit, find the form and the rules. Note the cap, how many years you can carry it over, and whether a lease counts.
Call your utilityAsk three things: any rebate, the rate it pays for power you export, and the hookup fee. Ask for the export rate in writing.
Check property and sales tax breaksAsk your county assessor whether solar adds to your property tax and whether you must file a form. Some states, like Texas, need one.
Check income-based helpIf your income is low or moderate, ask your state energy office about its Home Electrification and Appliance Rebates. It does not pay for panels, but where your state runs it, it can pay up to $4,000 toward an electric panel upgrade, under its own rules.
Put it in the quoteAsk the installer to list each incentive, who claims it, and when the money arrives. Do not let them take it off the price unless it is paid to them.
08
Compare
What state credits do to a typical 8 kW price
Uses the US typical 8 kW price of $22,400 with no federal credit. Your state's real price will differ.
State
State credit (8 kW)
Price after the credit
New York
$5,000
About $17,400
Hawaii
$5,000
About $17,400
South Carolina
$5,600 over 1–2 years
About $16,800
Massachusetts
$1,000
About $21,400
Arizona
$1,000
About $21,400
A state with no credit
$0
About $22,400
A state credit only lowers state income tax you owe. If you owe less than the credit, you may have to spread it over more years, where the state allows that.
09
Watch out
Incentive claims that are wrong in 2026
"You get 30% back from the IRS." Not for a system you own finished after December 31, 2025.
"Sign now and you lock in the credit." The IRS counts the cost when installation is complete, not when you pay.
"This is a government solar program" or "free panels." The FTC warns that sellers pose as the government or utility, and that free solar offers are scams.
"The government will mail you a rebate check." Federal credits were never checks, and the homeowner credit is gone.
"Lease it and you get the tax credit." The company that owns the system claims it, not you.
"PACE is a grant." PACE is a loan repaid on your property tax bill. It puts a lien on your home, which can make it hard to sell or refinance.
A state credit is shown as cash off the price, but you owe too little state tax to use it all.
10
Checklist
Questions to ask before you count any incentive
Who claims it, me or the company?
Is it a tax credit, a rebate, a yearly payment or a tax exemption?
Is money still left, or is there a waitlist?
Do I need approval before the install starts?
When is it paid, and to whom?
Do I owe enough state tax to use the full credit?
Has the quote already taken it off the price?
For a lease or PPA: does the price depend on the company's federal credit, and what happens if the install slips past December 31, 2027?
Can I get every answer in writing?
11
Watch out
Leases and PPAs after the July 4, 2026 date
That date has passed. A company that did not begin construction by July 4, 2026 must have the system in service by December 31, 2027 to claim its business credit. Since 2026, the owner also faces new rules on where parts come from.
This matters to you only if the company's price depends on that credit. Ask whether your rate changes if the credit is lost. Then compare the 25-year cost of the lease with buying.
12
Tip
Not tax advice
Credits lower tax you owe; they are not refunds. For your own return, talk to a tax preparer and check the rules on irs.gov and your state tax agency's site.
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Hawaii state credit, 35% up to $5,000 (8 kW)
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05 / Questions11 answers
Solar incentives in 2026: FAQ
Is there a federal solar tax credit in 2026?
Not for homeowners who buy. The 30% Residential Clean Energy Credit ended for expenditures after December 31, 2025, and an expenditure counts as made when installation is complete (IRS FS-2025-05).
Which states still have a solar tax credit?
State guides updated November 2026 list New York (25%, up to $5,000), Hawaii (35%, up to $5,000), South Carolina (25%, up to $3,500 a year), Massachusetts (15%, up to $1,000) and Arizona (25%, up to $1,000), among others. Rules change, so confirm with your state tax agency.
Can I still get a credit if I lease solar?
You do not claim one, but the company that owns the system may claim the Section 48E business credit if the project meets the 2026–2027 deadlines, and may pass some of it on in the lease or PPA price.
Is net metering going away?
Not everywhere. Florida's investor-owned utilities still credit exports at the full retail rate. California replaced classic net metering with the Solar Billing Plan for new applications after April 14, 2023. Texas never had a statewide rule.
Does solar add to my property taxes?
In many states the added value is exempt: Florida, Texas (with Form 50-123), Arizona, New Jersey and Maryland, with multi-year exemptions in New York and Massachusetts. California's exclusion covers systems finished by December 31, 2026.
Can I still claim the solar tax credit for a system installed in 2025?
Yes, if installation was complete by December 31, 2025. Claim it on your 2025 return with IRS Form 5695. If you already filed without it, ask a tax preparer about an amended return.
What happens to my unused solar tax credit?
You can still carry it forward. The 2025 law ended new credits but did not change the carryforward rule, so credit from a 2025 or earlier system can lower tax in later years until it is used up.
Is there a federal tax credit for home batteries in 2026?
No. Batteries of 3 kWh or more were covered by the same 25D credit, which ended for expenditures after December 31, 2025. Some states and utilities still pay for batteries; check DSIRE and your utility.
Are there free solar panel programs?
Be careful. The FTC says free or no-cost solar offers are scams. Some states run programs for low-income households, so check with your state energy office directly, not through a door-to-door seller.
Is the federal EV charger tax credit still available?
No. The IRS says the 30C credit is not allowed for property placed in service after June 30, 2026.
Do farms get different solar incentives?
Yes. The USDA's REAP program offers grants of up to 50% of project costs to farms and rural small businesses. Homeowners are not listed as eligible.
These are independent estimates from marketplace quote data, national cost surveys, Berkeley Lab installed-price data, installer and manufacturer pricing and state program pages. No installer can influence them, so always get a few quotes. Last reviewed November 2026. Read the full methodology →