Solar Panels Rebates 2026

The federal 30% solar tax credit (Section 25D) expired on December 31, 2025 and is not available for new installations in 2026. Solar panels are also not covered by the HEAR rebate program. However, state-level incentives, utility rebates, and net metering programs still make solar a worthwhile investment in many areas.

Available Solar Panels Rebates

Solar Rebates After the 25D Tax Credit

If you've been researching solar panels, you've probably seen references to the 30% federal tax credit. That credit, established under Section 25D of the tax code and extended by the Inflation Reduction Act, expired on December 31, 2025. Installations completed in 2026 or later do not qualify for this credit.

This is a significant change. On a $25,000 solar installation, the 25D credit would have saved you $7,500. Without it, the economics of going solar depend more heavily on your state and utility incentives, your electricity rates, and how your utility handles net metering.

Important clarification: If your solar system was installed and placed in service before January 1, 2026, you can still claim the 25D credit on your 2025 tax return, even if you file in 2026. The key date is when the system was operational, not when you file your taxes.

State and Utility Solar Programs Still Available

While the federal tax credit is gone, many states continue to offer their own solar incentives. These vary widely in structure and value:

• State tax credits: Several states including South Carolina, Iowa, and New York offer state-level tax credits for solar installations. These typically range from 10-25% of system cost.
• Cash rebates: Some utilities and state programs offer upfront cash rebates, usually calculated per watt of installed capacity. These can range from $0.20/watt to $1.00/watt or more.
• Solar Renewable Energy Certificates (SRECs): In states with renewable portfolio standards, you can earn SRECs for the electricity your system produces and sell them on the open market. SREC values range from $10 to $400+ depending on your state.
• Property tax exemptions: Many states exempt the added home value from solar panels from property tax assessments, saving you hundreds of dollars annually.

Use the DSIRE database (dsireusa.org) to look up current incentives in your state, or check with your state energy office directly.

Net Metering and Solar Incentives

Net metering remains one of the most important financial incentives for residential solar, even without the federal tax credit. Under net metering, your utility credits you for excess electricity your solar panels send back to the grid.

The value of net metering depends heavily on your state's policies. In states with full retail-rate net metering, you receive credit at the same rate you pay for electricity. Other states have moved to reduced rates or time-of-use structures that credit solar generation at lower wholesale rates.

Some states have introduced successor programs to traditional net metering. California's NEM 3.0, for example, significantly reduced the value of exported solar electricity but increased the value of battery storage. If you're in a state that has modified its net metering rules, pairing solar with a home battery may improve your return on investment.

Before going solar in 2026, get a detailed proposal from at least three installers that accounts for your actual electricity usage patterns, your utility's current net metering policy, and any available state or local incentives. Without the federal tax credit, these details matter more than ever for the financial case.

Solar Panels Rebates by State

Select your state to see specific solar panels rebate programs available in your area.