Updated October 2026. The federal solar tax credit for homeowners ended on December 31, 2025, so this guide was rewritten around what’s still available: state and local programs, property tax exemptions, net metering, and how panels affect a home sale. Federal and state pages read October 27, 2026.
As of October 2026, there is no federal tax credit for new home solar panels. The IRS says the 30% Residential Clean Energy Credit isn’t available for property placed in service after December 31, 2025. What’s left is local: state and utility rebates, net metering, and property tax exemptions such as Florida’s and Texas’s, which keep panels from raising your assessed value. Search your ZIP code on DSIRE to see what applies near you.
Jump to: 💲 Federal credit · 📍 Near you · 🏠 Property tax · ⏱️ Payback math · 🤝 Selling with solar · ❓ FAQ
Solar panel incentives in 2026, in numbers
- Federal credit: 30% for systems installed 2022 through December 31, 2025; none after that (IRS).
- Average U.S. home electricity price: 18.16 cents per kWh in August 2026, up from 17.57 cents a year earlier (EIA).
- Florida and Texas both exclude the added value of home solar from property tax (Fla. Stat. 193.624, Tex. Tax Code 11.27).
- For a buyer’s mortgage, leased or separately financed panels are treated differently from panels you own outright (Fannie Mae Selling Guide).
A lot of solar advice online still promises a 30% federal credit. That was true for years. It isn’t for anything installed in 2026. If a salesperson quotes it, ask them to show you the IRS page. The good news is that solar can still make sense. You just have to do the math with local incentives and real power prices, not a federal number that’s gone.
Is there still a federal tax credit for solar panels?
Not for homeowners installing new systems. The IRS Residential Clean Energy Credit page says the credit equaled 30% of qualified costs for property installed from 2022 through December 31, 2025, and that it isn’t available for property placed in service after that date.
Two things are still worth knowing. If your system went in during 2025, you claim the credit on your 2025 return with Form 5695. And the credit was nonrefundable: it could reduce your tax bill, but not below zero. Ask a tax preparer if you’re unsure whether an install counted as placed in service in time.
Solar panels still help the planet even without the tax break. If cutting emissions is part of your reason, Environment America has a good overview of ways to help the environment at home, solar among them.
How do you find solar panel incentives near you?
Use DSIRE, the Database of State Incentives for Renewables and Efficiency. Enter your ZIP code and it lists state programs, utility rebates and local rules for your address. It’s the closest thing to a real “solar incentives near me” search.
Here’s what you’ll typically find:
| Incentive | Who offers it | What it does |
|---|---|---|
| Rebate | Some states and utilities | Cash back per watt installed or a flat amount |
| Net metering or net billing | Utilities, under state rules | Credits you for power you send to the grid |
| Property tax exemption | Many states | Keeps the panels from raising your assessed value |
| Sales tax exemption | Some states | No sales tax on equipment |
| Low-income programs | States, nonprofits | Grants or no-cost systems for qualifying households |
Net metering rules vary a lot. Some utilities credit exported power at the full retail rate; others pay much less. That one rule can change your payback by years, so read your utility’s current tariff before signing.
Do solar panels raise your property taxes?
In many states, no. Two examples where we work:
- Florida: the value a renewable energy source device adds to a home can’t be considered in setting its assessed value (Fla. Stat. 193.624).
- Texas: owners get an exemption for the appraised value that a solar or wind device adds, when it’s mainly for on-site use (Tex. Tax Code 11.27).
Ask your county appraisal district (Texas) or property appraiser (Florida) whether you need to apply, and by when. Other states have their own rules; DSIRE lists them. For the basics of how assessments work, read our guide to how property tax works.
How do you figure out if solar pays off without the federal credit?
Start with your own bills. Add up 12 months of kilowatt-hours and what you paid. The U.S. average residential price was 18.16 cents per kWh in August 2026, but it was 14.99 cents in Florida, 15.91 cents in Texas and 29.75 cents in California (EIA Electric Power Monthly). Solar pays back fastest where power is expensive.
Then get at least three written quotes with the system size, expected yearly output and total price. A simple check:
Sell smarter
List your home on the MLS from $99
A flat fee instead of a percentage, and $0 to Beycome at closing. You stay in control of your sale.
Sell your home →Buy smarter
Get up to 2% back at closing
On homes listed by other agents, Beycome credits you up to 2% of the price at closing (1% kept, $1,499 minimum; not on FSBO homes or homes listed by Beycome sellers).
Buy a home →Payback in years = net system cost ÷ yearly bill savings.
Use the price after local rebates, and don’t subtract a federal credit for a 2026 install. Then compare that number with how long you plan to stay. If you might sell in five years, a 12-year payback is a harder sell. Cutting usage first helps too; The Spruce has simple ideas for how to lower people’s electricity bills that cost little or nothing. Our pieces on how solar energy can lower your electricity bills and Solar Energy 101 go deeper on output and sizing.
What happens to solar panels when you sell your house?
It depends on who owns them. Fannie Mae’s Selling Guide sorts panels into owned, leased, separately financed, or tied to a power purchase agreement (Fannie Mae B2-3-04). That label decides how your buyer’s lender treats them.
| Your panels | At sale |
|---|---|
| Owned outright | Part of the house; standard appraisal and title rules apply |
| Leased or power purchase agreement | The buyer must agree to take over the contract, or you buy it out |
| Separately financed | Don’t add value unless the documents say they can’t be repossessed |
| PACE loan | Must be paid in full at or before closing for a Fannie Mae loan |
So before you list, find your solar contract, any UCC filing, and 12 months of utility bills showing the savings. Put them in the disclosure packet. Buyers like solar when the paperwork is clean, and they get nervous when it isn’t. Our article on reasons to buy a house with renewable energy shows what buyers look for.
When you’re ready, a flat fee MLS listing with Beycome starts at $99 with $0 at closing, and you can feature the panels, the savings and the contract terms in the listing yourself. Shopping for a home that already has solar? Beycome’s buyer program is open to every buyer on homes listed by other agents. Beycome keeps 1% of the price (minimum $1,499) and credits the rest of the buyer-agent commission at closing, with lender approval. The credit can’t apply where no buyer-agent commission is offered, like most FSBO homes, or on homes listed by Beycome sellers.
More on solar from our blog: Practical Reasons Why You Might Want to Use Solar Energy.
Solar panel incentive questions
Is the 30% federal solar tax credit still available in 2026?
No, not for homeowners. The IRS says it isn’t available for property placed in service after December 31, 2025.
How do I find solar panel incentives near me?
Search your ZIP code on DSIRE, then check your utility’s website for rebates and its net metering rules.
Do solar panels increase property taxes?
Often not. Florida and Texas both keep the added value of home solar out of property tax, and many other states have similar exemptions.
What is net metering?
A utility rule that credits you for extra solar power you send to the grid. How much each kWh is worth depends on your utility and state.
Can I sell a house with leased solar panels?
Yes. The buyer usually takes over the lease, or you pay it off. Get the lease company’s transfer steps early so it doesn’t delay closing.
Do solar panels add value to a home?
Owned panels can, if the appraiser credits them. Leased or separately financed panels often add little or nothing to the appraised value.
Incentives change often; confirm every program with the agency or utility before you buy. Beycome prices as of October 2026 and subject to change. “$0 at closing” means no Beycome fee at closing; other closing costs still apply. Buyer credit: Beycome keeps 1% of the price, minimum $1,499; lender approval required; not on FSBO homes or homes listed by Beycome sellers.
General information, not tax, legal or financial advice.
Sources
- IRS, Residential Clean Energy Credit, read October 27, 2026.
- DSIRE, Database of State Incentives for Renewables and Efficiency, read October 27, 2026.
- EIA, Electric Power Monthly, Table 5.6.A, August 2026, read October 27, 2026.
- Florida Statutes 193.624 and Texas Tax Code 11.27, read October 27, 2026.
- Fannie Mae Selling Guide B2-3-04, properties with solar panels, read October 27, 2026.
- Beycome, buyer program terms, October 2026.
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