The Solar Tax Credit Is Gone. So Why Are Homeowners Still Going Solar?
Assure Energy | October 2026
For years, one of the biggest selling points for residential solar was the federal tax credit. Homeowners could potentially offset a significant portion of the cost of an eligible solar installation through their federal taxes.
That changed in 2026. The federal Residential Clean Energy Credit under Section 25D is no longer available for systems first installed after December 31, 2025. The IRS confirms that even paying for a system in 2025 does not preserve that homeowner credit when the original installation was completed in 2026.
So is solar still worth considering? Absolutely—but the conversation needs to change.
Your electric bill did not disappear with the tax credit
Electricity is an ongoing household expense. Whether you install solar or not, you still have to pay for the power you use, along with applicable utility charges. The decision is not simply whether you can get a tax break. It is whether a particular solar proposal can deliver a better long-term energy outcome for your home.
The right analysis starts with your actual electricity usage, roof conditions, utility rate, system production estimate, and the terms of any financing or lease. It should include realistic assumptions—not a promise that your electric bill will magically vanish.
Solar ownership and solar leasing are different decisions
When you buy a system, you own the equipment and take responsibility for the ownership-related costs and obligations described in your warranties and service agreements. In 2026, a newly installed homeowner-owned system does not qualify for the expired federal Section 25D credit.
With a solar lease, a third-party company typically owns the system and you pay for its use under a contract. Depending on the program, monitoring, maintenance, insurance, and equipment warranties may be included. But homeowners need to read the agreement carefully: compare the starting payment, annual escalator, contract length, utility charges that remain, production guarantees, transfer terms, and buyout provisions.
Some business-owned energy projects may have separate federal tax treatment, but that does not mean the homeowner receives a personal tax credit, and eligibility for specific leased solar arrangements is complex. Do not assume a lease automatically qualifies for an incentive or that any tax benefit is passed through to you.
What matters more than ever: the numbers
A responsible solar proposal should answer four questions:
How many kilowatt-hours does your home use in a full year?
How much electricity is the proposed system realistically expected to produce?
What will you pay for solar, plus any remaining utility bill, today and over time?
Who handles monitoring, service, repairs, and equipment issues?
A low introductory lease payment can look attractive, but a 2.9% annual escalator, for example, increases the payment over the life of the agreement. That is not automatically a bad deal; it simply needs to be included in the comparison against plausible future utility costs.
The future of solar is accountability
The industry needs to move beyond selling incentives and start selling verified performance, clear terms, and dependable long-term support. At Assure Energy, that is the standard we believe homeowners deserve.
We help homeowners evaluate solar, battery storage, and service options based on their energy usage and goals. And through Assure Protect, we work to support customers who need ongoing solar system attention—even when their original installer is no longer around.
The tax credit may be gone for new homeowner installations, but the reasons to understand your energy costs are not.
Want to know whether solar makes sense for your home in 2026? Let Assure Energy review your electricity usage and explain your options clearly.
Assure Energy
www.assureenergy.net
239-699-2151