Solar still pays for itself—even without the tax credit

The 30% solar tax credit expires for systems installed after December 31, 2025. But with falling solar panel costs, rising electricity prices, and the growing importance of personal energy independence, solar continues to deliver major financial benefits in the form of tens of thousands of dollars in savings—with or without the tax incentive.

The 30% solar tax credit expires for systems installed after December 31, 2025. But with falling solar panel costs, rising electricity prices, and the growing importance of personal energy independence, solar continues to deliver major financial benefits in the form of tens of thousands of dollars in savings—with or without the tax incentive.

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Solar tax incentives & rebates

The solar tax credit is no longer available to most homeowners purchasing their systems—but you may be able to still claim it indirectly if you sign a solar lease or power purchase agreement. Whether you're opting for one of those third-party ownership options, or you installed your system before the deadline, here's what you need to know about the solar tax credit.

Claiming your solar tax credit

If you installed your system by December 31, 2025, here are three main steps to claiming the 30% federal investment tax credit (ITC).

Determine if you're eligible

To be eligible for the Federal ITC directly, you need to own your solar system (rather than lease it). Your system needs to have been installed before December 31, 2025, and you need to have a big enough tax bill.

More on eligibility

Clean Energy Tax Guide - Step 1

Frequently asked questions

Learn more about claiming your tax credit.

If you don't already have a project scheduled before the end of 2025, it's likely too late to claim the solar tax credit. Your system must be installed by December 31, 2025 to qualify.

However, you can still indirectly claim the tax credit by signing a lease or power purchase agreement (PPA). Some new pre-paid lease and PPA options even offer a path to ownership while allowing you to reap the benefits of the solar tax credit.

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