The OBBB Solar Tax Credit Change: What Florida Buyers Need to Know Before Signing

Updated August 2026. The original version of this post, written in May 2026 while the OBBB's energy provisions were still being debated, described the 30% residential credit as "locked in through 2032." That is no longer the law, and this post has been rewritten to reflect what actually passed. The contract-clause advice — the part readers found most useful — has been updated and kept.

What did the OBBB actually do to the solar tax credit?

The One Big Beautiful Bill Act became law on July 4, 2025, and it ended the 30% federal residential solar credit (Section 25D) for expenditures after December 31, 2025. The old step-down schedule — 30% through 2032, 26% in 2033, 22% in 2034 — no longer exists. For homeowners buying a system in 2026, there is no federal residential solar tax credit.

If you paid for your system in 2025, you can still claim the credit on your 2025 return. But for purchases made in 2026, the line simply isn't there anymore — and any proposal that still subtracts it is using dead math. We wrote a full guide to spotting that: My Solar Quote Still Shows a 30% Tax Credit — Here's Why That's a Red Flag in 2026.

What survived for Florida homeowners?

Florida's state-level benefits did not change: net metering under your utility's current rules, the property-tax exemption on the added home value from residential solar, and the sales-tax exemption on solar equipment all remain in place. What ended is specifically the federal credit for systems you own.

Why is every rep suddenly pushing a lease?

Because the commercial-side credit (Section 48E) survived in modified form, and in a lease or PPA the leasing company owns the system — so the leasing company captures a federal credit that you, as a buyer, no longer can. That shifted sales incentives hard toward third-party ownership in 2026.

A lease isn't automatically a bad deal, but it needs to be priced like one: the tax benefit lands on their side of the table, so the monthly payment should reflect it. See Owned vs. leased solar after the tax-credit change before signing anything.

The 5 contract clauses to check in any 2026 solar agreement

Updated for the post-credit era:

1. Phantom-credit math. If the proposal's "net cost" subtracts a federal tax credit on a purchased system, stop. That figure is wrong by $8,000–$10,000 on a typical quote.
2. Lease escalators and tax-law language. Some lease contracts let the company adjust your payment if tax law changes. The law already changed in their favor — negotiate escalator language out, or walk.
3. PTO timeline commitment. Still excellent advice: the installer should commit in writing to Permission to Operate within ~120 days. In 2026 this protects you from a different risk — installer instability — rather than a credit deadline.
4. Who keeps any remaining incentives. In a lease, the company keeps the federal credit. In a cash or loan purchase there is no federal credit to assign — so any contract language "assigning" one to the installer is a red flag for a template nobody proofread.
5. Savings-projection assumptions. With no credit softening the price, inflated utility-rate-escalation assumptions are now the main lever that makes bad math look good. Ask what annual escalation rate the 25-year chart assumes; 2.5–3% is defensible, 4–5% is salesmanship.

What I'd do right now

If you have a 2026 quote in hand — especially one showing a tax credit, a lease pitch that "keeps your incentives," or any sign-tonight pressure — get a second set of eyes on it before you sign. I review quotes for free and tell you plainly whether the math holds: free solar quote review.

Disclaimer: This is general information, not tax advice. Consult a CPA about your specific situation. Legislative references reflect the public record as of August 2026.