Federal Solar Tax Credit in 2026
Residential Savings Are Still Available - Even After the Credit Ended
What Changed With the Federal Solar Tax Credit?
For more than a decade, the federal Solar Investment Tax Credit (ITC) helped millions of homeowners reduce the cost of going solar by allowing them to claim 30% of their system cost as a federal tax credit.
Homeowners: Tax incentives ended December 2025
That incentive officially ended for homeowner-owned systems on December 31, 2025.
If your system was installed and placed in service before that date, you may still qualify under the old rules. But for new homeowner-owned installations in 2026, the residential tax credit is no longer available.
Commercial Projects: 30% federal incentive still active
The federal solar tax credit continues to support commercial and business-owned solar systems under updated federal guidelines.
This includes solar installed on:
- Businesses and office buildings
- Farms and agricultural operations
- Multifamily or income-producing properties
- Residential Leases: Third-party systems owned by solar providers
While this change affects ownership, it doesn’t mean federal solar incentives are gone or that homeowners are out of options.
Good News: Residents Can Still Access Incentive Savings
In Florida, many homeowners can still benefit from federal tax credit savings through third-party solar leases. A solar provider installs and owns the system on your home. They claim the federal incentive and use it to lower your monthly cost by passing the savings on to you.
The “Leasing Loophole”
It’s considered a “loophole” because it effectively bypasses the intent of the repeal. The OBBB (One Big Beautiful Bill) was designed to stop direct subsidies to homeowners. However, because commercial-sector lobbyists successfully kept Section 48E alive for developers, homeowners can benefit (by proxy) from commercial savings.
Why Solar Leases Work
Because the system owner remains eligible for federal incentives, homeowners benefit through:
- Little or no upfront cost.
- Lower monthly payments.
- Immediate and long-term electricity savings.
- Protection from energy inflation.
In many cases, leasing now provides homeowners with the most solar savings in 2026.
Critical 2026 Deadline
Projects must begin construction by July 4, 2026, to lock in these current favorable rates. If you are looking at a solar lease, you likely want to get the contract signed well before mid-year to ensure the installer can “safe harbor” the equipment and secure the credits.
Is Solar Still Worth It Without the Homeowner Credit?
For many homeowners, the answer is yes, and often more than ever.
Here’s why:
- Utility rates in Florida continue to rise, increasing the value of locking in lower energy costs
- Solar technology is more efficient and reliable than ever
- Leases remove upfront cost barriers, making solar accessible to more households
- Long-term savings still add up, even without a tax credit
Solar remains one of the most effective ways to reduce energy bills, stabilize future costs, and increase home energy independence.
Federal Tax Credit FAQs in 2026
Can I still personally claim a federal solar tax credit in 2026?
No. The homeowner-owned portion of the credit ended after 2025. Only system owners, such as solar leasing companies or businesses, may claim federal incentives.
How do leases give me savings if I don’t get the credit?
The solar provider claims the incentive and uses it to reduce system costs, which lowers your monthly payments or energy rate.
Are there other incentives in Florida besides federal?
Yes. Florida has several great solar incentives, including:
- 1:1 Net Metering: This is the “Utility Bank Account.” For every excess kWh your panels produce during the day, you get a full credit to use at night. It’s the key to eliminating your bill.
- 0% Sales Tax: Solar equipment is exempt from Florida’s 6% sales tax.
- Property Tax Exclusion: Your home value goes up, but your property taxes do not rise to match the added value of the system.
Are batteries still eligible for incentives?
Residential battery incentives ended with the homeowner credit. Commercial and third-party systems may still qualify under business incentive rules.
Find Out Which Solar Option is Best for You
Solar incentives may have changed, but your opportunity to save has not. Whether you’re exploring leasing, comparing ownership vs. third-party options, or simply want to understand what still applies in 2026, our team is here to help. Get your free Solar Savings Analysis and see which option delivers the most value for your home.