The 2026 Federal Incentive Landscape, Explained Plainly

Federal solar incentives shifted hard at the end of 2025, and a lot of online information is now out of date. Here's the landscape as it stands in 2026.

What ended

The residential clean energy credit (Section 25D) — the 30% credit homeowners claimed on their own taxes — ended for systems placed in service after December 31, 2025. If you buy a system with cash or a loan in 2026, there is no federal tax credit on that purchase. Anyone telling you otherwise is selling something.

What survived

The commercial clean energy credit (Section 48E) continues through 2027 — and it applies when a business owns the system on your roof. That's how leases and power-purchase agreements work: the financing company owns the equipment, claims the credit, and competitive markets push that value through as lower monthly rates. A well-structured lease in 2026 effectively recaptures most of the federal value that cash buyers lost.

How to compare fairly

Cash still wins on simplicity and long-run total: no payments, full ownership, strongest 25-year number. Third-party ownership wins on day-one economics: $0 down and federal value baked into the rate. The right answer depends on your tax situation and how you think about ownership — which is why every Pro Solar proposal quotes both side by side instead of steering you.