The Trump Administration’s decision to repeal of the 30% home solar tax credit in 2025 looked like the end of the road for subsidized rooftop solar projects, but it looks like the home solar tax credit is still alive — you just have to know where to look for it, and how to claim it.
The 30% federal tax credit for homeowners adding rooftop solar (Section 25D) very publicly expired on December 31st, 2025 — but that doesn’t mean you can’t still get 30% off your solar installation. That’s because Section 25D (the one that the Trump Administration killed) only applied to taxpayers with an ownership interest in their PV systems (some financed systems or systems that were purchased outright), but there’s still another option: leasing.
That’s right, gang. Just as we’ve seen with electric vehicle tax credits over the years, the rules for leases are a little bit different than those for purchases. What that means here is that, under Section 48E of the Federal tax code, qualified solar companies that own a PV system can continue to claim a credit of up to 30% on those through the end of 2027, and if you’re leasing your system or entering into a power-purchase agreement (PPA) with a solar installer, the company can pass some or all of that incentive on to you.
Does that mean lower monthly payment? Lower, or even eliminated up-front costs? That’s ultimately between you and the company you decide to move forward with. The key takeaway, however, is that the 30% solar incentive isn’t dead dead.
As Miracle Max said, “It’s just mostly dead.”
More about Section 48E
At the center of the post-2025 solar tax credit is US Code § 48E, often called the Clean Electricity Investment Credit. Unlike the now-expired residential credit (the previously-mentioned Section 25D), which was claimed directly by homeowners, Section 48E is a commercial investment tax credit designed to incentivize businesses that own “clean energy equipment,” which currently includes both solar panels and battery energy storage systems (along with natural gas fuel cells, among other things).
Under this provision, a company that owns a solar installation can claim a tax credit worth up to 30% of its qualified investment in the project then enter into a third-party ownership model (lease or PPA) with the homeowner.
There are, of course, some caveats. The project must begin construction before July 4, 2026, and be placed in service by December 31, 2027. The company can then decide how (or, I guess, if) they want to factor that tax benefit into their pricing for homeowners.
Electrek’s Take Disclaimer
Tax law is a messy, complicated, and high-stakes field. Federal tax credits, state laws, utility programs, and the fine print in the contracts from company to company can overlap or even contradict each other — and navigating any part of it isn’t especially intuitive. That complexity is exactly why the smart people you know hire accountants and tax professionals to make incentives work for them, and you should do the same.
If you’re considering a lease or PPA, a conversation with a qualified professional installer can help you understand what’s being offered and how a given deal is being structured. Take that information to your accountant to understand what’s real, what’s marketing, and what actually makes sense for you — and if there’s money on the table, make sure you don’t leave it there.
Top comment by GaryGrenda
Ive been offered this.
Company was suppose to complete a battery installation by year end. They didn't make it. They've now offered to knock 30% off my install price because they can claim this tax credit.
Basically they are saying they own the battery for 5 years. Then we have signed an agreement that they will sell it to me after 5 years for $1.
I can't think of any downside here. Almost better honestly.
Unless, you know, you don’t actually care about money.
Original content from Electrek.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links. More.
Comments