Solar Panel Rebates Still Available in 2026: What Survived the OBBB
What OBBB Actually Killed for Solar
The One Big Beautiful Bill eliminated the residential solar Investment Tax Credit (ITC) — formally Section 25D of the tax code — effective January 1, 2026. For homeowners who installed solar in 2025, the 30% credit still applies when you file your 2025 return. For anyone installing in 2026 or later, it's gone.
That 30% credit was worth an average of $7,500–$9,000 on a typical 8–10 kW residential system priced at $25,000–$30,000 before incentives. Losing it stings. But claiming the federal credit was gone doesn't mean solar economics collapsed — it means you need to do the math more carefully and lean harder on what's still available.
For context on the broader OBBB impact on energy tax credits, see what the OBBB actually eliminated.
State-Level Solar Incentives: The Real Remaining Value
State incentives were never contingent on 25D. Many states had independent solar programs before the ITC existed, and several strengthened those programs precisely because they anticipated federal rollback.
California: SGIP and NEM 3.0
California's Self-Generation Incentive Program (SGIP) provides rebates for battery storage paired with solar — up to $200 per kWh for standard applicants and up to $1,000 per kWh for low-income customers through the Equity Resiliency tier. A 10 kWh battery earns $2,000 under standard SGIP; the same battery earns $10,000 under Equity Resiliency.
Net Energy Metering 3.0 (NEM 3.0) reduced export rates compared to NEM 2.0, which changed the payback math — but solar paired with storage still pencils out in California. The payback period shifted from 6–7 years to 9–11 years for most systems. That's longer, but still well within a 25-year panel lifespan.
Full details at California energy rebates 2026.
New York: NY-Sun Megawatt Block
New York's NY-Sun program continues distributing incentives through the Megawatt Block structure. Incentive values decline as blocks fill — installers track current block pricing. As of early 2026, residential incentives in most Consolidated Edison territory run $0.20–$0.30 per watt, or $2,000–$3,000 on a typical system. Upstate territories tend to have higher per-watt incentives because blocks fill more slowly.
NYSERDA also offers the Clean Energy Fund for income-qualified homeowners, with deeper incentives and better financing terms. See New York energy rebates for current block status.
Massachusetts: SMART Program
Massachusetts runs the Solar Massachusetts Renewable Target (SMART) program, which pays a fixed per-kWh rate for solar production for 10 years. Rates vary by utility territory and system size, but residential systems under 25 kW typically earn $0.08–$0.14 per kWh depending on adders (low-income, storage, geographic). On a system producing 10,000 kWh/year at $0.10/kWh, that's $1,000/year — $10,000 over the program term.
Mass Save also offers 0% HEAT Loan financing for solar, reducing upfront cost even without the federal credit.
States with Direct Cash Rebates
| State | Program | Maximum Rebate | Notes |
|---|---|---|---|
| New Mexico | Rural Electric Cooperative Program | $6,000 | Co-op members only |
| Maryland | MEA Residential Solar Rebate | $1,000 | Plus county programs |
| Utah | Renewable Energy Systems Tax Credit | 25% up to $2,000 | State income tax credit |
| Montana | Residential Alternative Energy System Credit | $500 | Smaller but still available |
| Connecticut | Residential Solar Investment Program | Varies by capacity | Block structure like NY |
HOMES Rebates: Does Solar Qualify?
The HOMES (Home Owner Managing Energy Savings) rebate program is modeled on whole-home energy savings — your total energy reduction percentage determines your rebate amount. Solar panels directly reduce grid energy consumption and can contribute to the measured savings that trigger HOMES rebates.
However, HOMES rebates are primarily designed around efficiency improvements (insulation, heat pumps, HVAC). Solar's role in HOMES calculations varies by state — some states count it, others don't. The maximum HOMES rebate is $8,000 for low-income households achieving 35%+ energy savings.
Use the solar rebate calculator to see how HOMES stacking might work in your state.
Utility-Level Solar Incentives
Investor-owned utilities in many states maintain independent solar incentive programs that have nothing to do with federal policy. These vary enormously but are worth investigating:
- Austin Energy (TX): Value of Solar Tariff — fixed rate per kWh exported
- Xcel Energy (CO, MN): Solar*Rewards program, performance-based incentives
- Dominion Energy (VA): Solar rebates up to $0.30/watt for qualifying systems
- Pacific Gas & Electric (CA): NEM 3.0 plus storage incentives
Municipal utilities (co-ops and public power) often have more flexible incentive programs than investor-owned utilities, especially in rural areas. Call your utility directly — these programs aren't always well-publicized.
Solar Panel Costs in 2026 After OBBB
The solar industry anticipated the ITC sunset. Panel prices continued their long-term decline through 2025, and installer competition remains high. The all-in cost for a residential solar system in 2026:
- Small system (5–6 kW): $14,000–$18,000 before incentives
- Mid-size system (8–10 kW): $22,000–$28,000 before incentives
- Large system with storage (12 kW + 10 kWh battery): $35,000–$45,000 before incentives
Without the 30% ITC, simple payback periods lengthened by 2–4 years nationally. States with strong net metering and production incentives (MA, NY, NJ, CA) still see 8–12 year paybacks. States with weak net metering (FL, TX ERCOT territory) may push to 14–18 years, which changes the economic case significantly.
Who Should Still Install Solar in 2026
Despite the ITC loss, solar remains financially rational for several buyer profiles:
High Electricity Bill Households
If your monthly electricity bill exceeds $200, solar economics still work in most states even without the federal credit. The avoided cost of electricity at $0.15–$0.30/kWh (depending on your utility) drives payback more than the upfront incentive.
Homeowners Planning Battery Storage
The 25D credit for battery storage (not paired with solar) also expired. But storage itself provides grid-independence value — especially in states with high outage risk or time-of-use rates. SGIP in California and similar programs still partially offset storage costs.
Income-Qualified Households
If your household income is below 150% of Area Median Income, HEAR program funding may cover solar-adjacent electrical work (panel upgrades, wiring) that reduces your total solar project cost. Combined with state programs, the net cost reduction can still rival the old ITC. See the AMI income guide to understand your eligibility tier.
Homeowners in Strong Net Metering States
Net metering policies that credit exported solar at or near retail rates dramatically improve solar economics. States with retail-rate NEM (Nevada reinstated it, Illinois, New Jersey, Massachusetts) give solar systems an effective subsidy through policy that doesn't appear on any incentive sheet.
What to Do Right Now
If you're considering solar in 2026:
- Get three quotes from local installers — the post-ITC market is competitive and prices are negotiable
- Ask specifically about state and utility programs the installer will handle paperwork for
- Check your state's net metering policy before assuming payback calculations
- If income-qualified, check HEAR program status for electrical work that might be bundled
- Consider whether battery storage adds enough value to justify the cost in your specific utility territory
Find what's currently available in your state at Texas solar incentives or your specific state page.