One question, answered straight
What changed with the federal solar tax credit in 2026?
The 30 percent federal residential solar tax credit (Internal Revenue Code Section 25D) ended for any system where installation was completed after December 31, 2025, with no phase-down. It applies to cash and loan purchases. A separate commercial credit, Section 48E, still runs through 2027, but only for third-party-owned leases and power purchase agreements, not the systems Solar Assure sells.
By Joshua Hayeslip · Founder and CEO, Solar Assure
The statute, quoted
What Section 25D actually says.
26 U.S.C. § 25D(h), the termination clause added by the One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025), reads:
“The credit allowed under this section shall not apply with respect to any expenditures made after December 31, 2025.” 26 U.S.C. § 25D(h), as amended by Public Law 119-21
There is no percentage step-down the way earlier solar-credit sunsets worked (30% to 26% to 22% over several years). This is a hard stop. The statute also defines exactly when an “expenditure” counts as made, which is the detail that trips people up: 26 U.S.C. § 25D(e)(8)(A) states that “an expenditure with respect to an item shall be treated as made when the original installation of the item is completed.” The IRS's own FAQ on the law confirms the practical effect: “The credit will not be allowed for any expenditures made after December 31, 2025,” and paying before the deadline does not help if the installation itself finishes afterward.
Source: 26 U.S.C. § 25D, Cornell Law School Legal Information Institute; IRS FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W and 179D under Public Law 119-21. Checked September 24, 2026.
What's still available
Section 48E: real, but not for a system you own.
A separate federal credit, Section 48E of the Internal Revenue Code, remains available through 2027 with a phase-down beginning in 2033. It is a commercial-side credit: it applies to systems that are third-party owned, meaning a lease or a power purchase agreement (PPA), where a company other than the homeowner owns the panels and claims the credit itself, sometimes passing part of the value through in the pricing. Solar Assure sells owned systems, cash or loan, not leases or PPAs, so this credit is not part of a Solar Assure quote. If a company advertises “30 percent off” on a 2026 residential purchase you'd own outright, ask directly which credit they mean; the residential one is gone.
What it means where we serve
Missouri, Kansas and Colorado, without the credit.
Rate and production figures are from the rate table on our disclosures page, verified against each utility's own tariff or CURB's published rate history. Xcel's rate is Solar Assure's own labeled estimate; see the Colorado utility page for the derivation.
Common questions
The credit, answered honestly.
Can I still get the 30% federal solar credit in 2026?
No, not for a system you buy with cash or a loan. Section 25D, the residential credit, stopped applying to any installation completed after December 31, 2025, per the statute's own termination clause. There is no partial or reduced credit for 2026 installations.
What if I paid a deposit before December 31, 2025?
The statute treats an expenditure as made when installation is completed, not when you paid. A deposit or contract signed in 2025 does not preserve the credit if the physical installation finishes in 2026 or later. Ask your accountant about your specific situation; this page is not tax advice.
Does the commercial solar credit still exist?
Yes. Section 48E remains available through 2027 with a phase-down starting in 2033, but only for third-party-owned systems: leases and power purchase agreements, where a company other than the homeowner owns the panels. It does not apply to a system you purchase and own outright.
Josh founded Solar Assure in Lake Saint Louis to give homeowners honest numbers instead of a sales pitch. He is not a tax advisor; this page summarizes the statute and IRS guidance and is not tax advice. Consult a qualified tax professional about your specific situation.
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