Updated October 12, 2026
Solar incentives in 2026: start with the current rules
A solar proposal should work with the incentives you actually qualify for. Homeowner and business rules are different.
The federal homeowner credit ended for new installations
The IRS states that the Residential Clean Energy Credit under Section 25D is not available for property placed in service after December 31, 2025. A new 2026 homeowner solar or battery proposal should not automatically subtract 30% from the installed cost.
Read the IRS Residential Clean Energy Credit guidanceCommercial solar follows separate rules
Eligible business projects may qualify for the Clean Electricity Investment Credit under Section 48E. The IRS describes a 6% base credit that can increase to 30% when applicable requirements are met. Timing, project size, labor requirements, sourcing rules, and other eligibility conditions need a project-specific review.
Credits and depreciation are not interchangeable, and the same installation cost should not be counted twice as an expense and a depreciable asset. Ask your tax professional to calculate eligible basis, credit, depreciation, and the effect on your actual tax liability.
Read the IRS business credit guidanceBattery and utility programs depend on eligibility
Programs such as California SGIP have eligibility, funding, and equipment requirements. Availability is not guaranteed. Utility export credits also vary by provider and tariff; they are not a promise of full retail credit for a new system.
Check CPUC SGIP informationWhat to ask before signing
- What is the cash installed price before any incentives?
- Which incentives are confirmed for my property and installation date?
- Does the savings model use the utility and tariff on my bill?
- What changes if I receive no rebate or credit?
Solar Topper provides project scope and cost documentation. Your tax professional determines tax eligibility. Review current official guidance when making a decision.
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