The federal homeowner solar credit ended. What now?

The federal residential credit under section 25D ended for systems placed in service after December 31, 2025. Public Law 119-21 made that change. The IRS says an expenditure is made when the original installation is completed, which is the placed-in-service test for a system you add to an existing house. Paying or signing in 2025 does not keep the credit if the crew finishes in 2026. Source: the IRS FAQ on Public Law 119-21, updated August 21, 2025, and 26 U.S.C. § 25D.

What not to do with a price

Do not multiply a 2026 contract by 0.7 and call the result your cost. That arithmetic described the old 30 percent credit. The tax credit page cites the statute and the IRS FAQ. Our calculator does not subtract a credit, because subtracting one would be false for a new installation.

Leases do not put the credit in your name

If a company owns the system, you were never the one claiming section 25D. A lease is not a workaround. Compare the payment schedule to your bill. Ownership, maintenance, and the house sale are the real differences, covered in lease versus buy.

Earlier installations

A credit that was actually allowed for an earlier installation can be a carryforward. That is not a new credit for a system completed now. Your preparer and your return are the record. This site will not reconstruct them.

How to decide without the credit

Use the cash price, a realistic bill offset, and the export rule on your tariff. Berkeley Lab's 2025 medians are a national description of prices, not your bid. Cost and savings keep those ideas separate. If the numbers only work with a credit you cannot claim, they do not work.