Last year, a shockwave rang through the solar industry when the 30% federal tax credit was repealed by the federal government.
This landmark financial incentive helped make solar energy more affordable for countless homeowners and was a key instrument in promoting awareness of the benefits of clean energy.
Understandably, there is a bit of confusion amongst consumers as people wonder what solar incentives are still out there, if any.
The good news: there are still plenty of ways for you to save on solar even without the federal tax credit.
In this article, we’ll explore the impact of the tax credit going away as well as the solar incentive options that are still available for anyone interested in going solar.
The State of the 30% Federal Tax Credit in 2026
Prior to 2026, the 30% federal tax credit was key in helping homeowners afford rooftop solar panels. It made solar even more attractive for prospects since it helped lower the hefty initial cost of going solar. This tax credit also helped boost private investment in clean energy by creating a faster return on investment, thus encouraging developers to invest in more solar projects.
However, on July 4th, 2025, the Trump administration passed the “Big Beautiful Bill” which ended the 30% federal tax credit. With the incentive gone, solar owners now face higher upfront costs to go solar as well as increased rate hikes as energy demand continues to soar.
So yes things are looking a bit gloomy in the solar world, incentive-wise.
But it’s not all bad news!
So will there be solar incentives left in 2026?
So here’s the bad news and good news.
Yes, the federal tax credit ended in December 2025 BUT…there are still plenty of financial incentives available to help you go solar with minimal stress and as much savings as possible.
1. State incentives and credits: these include a variety of rebates and tax credits offered at the state level to facilitate your transition to solar energy. Tax credits help reduce your tax burden when you file your state income taxes and rebates give eligible solar owners discounts and cash refunds for their solar system.
Examples:
- The New York State Tax credit: if you reside in New York, lets you claim 25% (up to $5000) off your rooftop solar system’s installation costs.
- The Massachusetts State Tax Credit: lets you claim 15% off the cost of your solar panels (up to $1000) if you reside in Massachusetts.
- Pennsylvania PECO rebate: new solar owners in Pennsylvania are eligible to receive a $500 rebate from PECO if their system was installed after September 1, 2024.
2. State solar initiatives: these are special programs created by state governments to encourage residents to go solar.
Examples:
- The New Jersey Successor Solar Incentive Program (SuSI): provides financial support to large-scale solar projects to spur the growth of solar in New Jersey and make it easier for all its residents to benefit from solar energy no matter their background.
- The Solar Massachusetts Renewable Target (SMART) Program: ensures a fixed rate for every kilowatt/hour of solar energy produced by a community solar project. This provides a stable revenue source for solar developers and incentivizes them to continue developing even more solar projects. It also features additional incentives specifically for developers servicing low-income communities.
- The Maryland Solar Access Program: supports income-eligible Maryland residents with the installation costs of their solar photovoltaic system. The program offers grants of $750 per kW (up to $7500) to help low-to-moderate income households go solar.
3. Performance based incentives: these incentives compensate you based on how efficient your system is and how much electricity it produces.
Examples:
- SRECs: A solar renewable energy certificate (SREC) is a financial incentive that helps homeowners make extra cash by selling leftover energy produced by their solar panels to their utility. For example, since 1 SREC is earned for every 1 MWh or 1000 kWh, if a homeowner in Pennsylvania has a solar system that generates 6 MWh (6000 kWh) yearly, and SRECs in that state sell for $31, they could earn 6x$31= $186 in SRECs income each year.
Keep in mind that financial incentives are also available to third party owners of solar systems (e.g. purchase power agreement providers). Solar battery incentives like California’s Self-Generation Incentive Program are also still available. These can help you as a solar owner, recoup part of the cost of your solar battery system (if you have one), as well as your solar panels.
4. Net metering, property and sales tax exemptions
Many states like Massachusetts and New York also offer solar equipment sales tax exemptions as well as property tax exemptions on the value added to your home from solar panels.
Additionally, net metering is also a well-known incentive amongst solar owners. This billing system gives you credits for any extra energy produced by your solar panels that you send back to the grid. The earned credits can later be used to reduce your electric bill at times when your system underproduces (ex: during winter months).
In some cases, you may even be able to combine incentives for maximum savings. Just make sure to check with your utility or local government to understand exactly which incentives you could qualify for!
So even though the federal tax credit is done, there are still plenty of financial incentives available to help you go solar. Are you ready to go? Reach out to our team and we will help you find the right solar energy solution for your needs!