Is Solar Still Worth It in 2026 Without the 30% Tax Credit?

The 30% federal solar tax credit ended for homeowners on December 31, 2025. Here is the honest 2026 math on whether solar still pays — and why $0-down leases now win for most homes.

The biggest change to home solar in over a decade happened quietly on December 31, 2025 — the day the **30% federal residential solar tax credit (Section 25D) expired** under the One Big Beautiful Bill Act. For roughly fifteen years that credit was the single most-quoted number in every solar pitch: "Get 30% back from the government." In 2026, for a system you buy with cash or a loan, **that money is gone.** So homeowners are rightly asking the obvious question: *without the tax credit, is solar still worth it?* The honest answer is that **for many homes it still is — but the smart way to go solar has changed.** Here is the real 2026 math, with no spin. ## What actually expired (and what didn't) Two different tax credits get lumped together as "the solar tax credit," and only one of them ended: - **Section 25D — the residential credit.** This is the one you claimed on your own tax return when you bought a system with cash or a loan. **It ended December 31, 2025.** If you own your system in 2026, there is no 30% personal credit. - **Section 48E — the commercial credit.** This still exists for businesses that own energy equipment. It matters to you because **a solar lease or power-purchase agreement (PPA) is a third-party-owned system** — the financing company owns the panels, claims the commercial credit, and passes that value back to you as a lower monthly payment. That second point is the whole story of solar in 2026: the savings didn't disappear, they **moved from your tax return to your monthly bill** — if you choose the right structure. ## Solar savings were never really about the credit The tax credit lowered your *upfront* cost. But the reason solar saves money year after year is much simpler: **you stop renting electricity from a utility whose rates only go up.** Residential electricity prices have climbed roughly 4–8% a year in most markets, and faster in places like California, Hawaii, and the Northeast. When you produce your own power, you swap a bill that rises forever for an energy cost that is either fixed or eliminated. Over 25 years, that avoided-rate math is far larger than any one-time credit ever was. ## The 2026 math: cash, loan, or lease **Cash purchase.** You own the system outright and your electricity is essentially free after payback. Without the 25D credit, your upfront cost is higher and your payback period is longer than it was in 2025 — typically a few years longer. Still the best lifetime ROI *if* you have the cash and plan to stay in the home long-term. **Solar loan.** $0 down, you own the system, and you swap your utility bill for a loan payment. Without the credit, loan terms are less aggressive than the old "re-amortize after your 30% check" pitch — so be skeptical of any 2026 quote that still assumes a tax-credit paydown. Honest loan math in 2026 is about whether the payment beats your (rising) utility bill. **Lease / PPA — why it now wins for most homes.** With a $0-down lease or PPA, the provider owns the system, captures the commercial credit, handles maintenance and monitoring, and sells you the power at a **locked rate below what your utility charges.** No upfront cost, immediate savings, and protection from rate hikes — without needing a tax appetite of your own. For the majority of homeowners in 2026, this is the cleanest way to come out ahead from month one. ## When solar still makes sense in 2026 - Your monthly electric bill is **$120+** and climbing. - Your utility raises rates most years (almost all of them do). - You have a reasonably sun-exposed roof and plan to stay a few years or more. - You want predictable energy costs and, ideally, backup power. ## When it might pay to wait - Your bill is very small (under ~$60/mo). - You are moving within a year or two. - Heavy, unavoidable shade over most of your roof. ## The bottom line The end of the 30% residential credit did not kill home solar — it changed the winning move. In 2026, the homeowners who come out ahead are usually the ones who go **$0-down with a lease or PPA**, lock in a rate below their utility, and let the financing company carry the tax complexity. The only way to know your real numbers is to run them against *your* roof, *your* utility, and *your* 2026 options. [Get a free, no-pressure Solarfying quote](/get-quote) and we will show you the honest math — cash, loan, and lease side by side — with no expired tax credits baked in. ## Solar by state Incentives, net metering, and payback vary a lot by state. See your state's 2026 outlook: [Florida](/blog/florida-solar-2026) · [California](/blog/california-solar-nem-3-2026) · [Texas](/blog/texas-solar-2026) · [New York](/blog/new-york-solar-2026) · or [browse all states we serve](/states).

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