The federal tax credit
expired. Here's what's
still available.
The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025. But federal, state, and utility incentives for batteries, heat pumps, EV chargers, and weatherization are still fully active. Sol Country explains what's left and what it's worth.
What the federal government
still pays for in 2026.
While the residential solar purchase credit expired, several major federal incentive programs remain fully active in 2026. Here's what's still available.
Standalone home battery storage qualifies for the 30% Investment Tax Credit through 2032. Does not require solar panels. Covers Tesla Powerwall, Enphase IQ Battery, and similar systems.
Level 2 home EV charger installation qualifies for 30% of hardware and installation costs. Expires June 30, 2026. Must be in a low-income or rural census tract in most cases — verify your eligibility.
High-Efficiency Electric Home Rebate Act (HEAR) provides point-of-sale rebates for heat pumps, heat pump water heaters, EV chargers, and electrical upgrades. Income-based — 80% AMI gets full rebate, 80–150% AMI gets 50%.
HOMES (Home Owner Managing Energy Savings) provides rebates for whole-home efficiency upgrades including insulation, air sealing, and HVAC. Based on verified energy savings — 35% reduction gets $4,000, 50%+ gets $8,000.
While the residential solar purchase credit expired, the commercial ITC remains active for businesses, LLCs, and lease/PPA providers. This is why Palmetto LightReach and similar programs can still offer competitive pricing — they own the systems commercially and claim the ITC on your behalf.
Up to $14,000 in federal
home energy rebates.
The Inflation Reduction Act created two rebate programs — HEAR and HOMES — that provide significant money for home energy upgrades. Unlike tax credits, these are point-of-sale rebates, meaning you don't need to wait until tax season.
| Upgrade | Max rebate | Under 80% AMI | 80–150% AMI |
|---|---|---|---|
| Heat pump (heating/cooling) | $8,000 | 100% of cost | 50% |
| Heat pump water heater | $1,750 | 100% | 50% |
| EV charger | $1,500 | 100% | 50% |
| Electric panel upgrade | $4,000 | 100% | 50% |
| Insulation / air sealing | $1,600 | 100% | 50% |
| Other efficiency upgrades | $2,500 | 100% | 50% |
| TOTAL maximum per household | $14,000+ | — | — |
AMI = Area Median Income. Programs are administered by states — availability varies. Sol Country checks your state's HEAR program status automatically.
Not all states have launched their HEAR programs yet. Check energy.gov/scep/home-energy-rebates for your state's status.
Your state may have its
own solar tax credit.
Many states offer solar incentives independent of the federal program. These state credits often stack with federal programs and remain active even after the federal 25D credit expired.
Sol Country checks DSIRE for your state's current programs automatically when you run Find My Power.
Your utility may pay you
to go solar.
Many utilities offer rebates, net metering programs, and demand response payments that add significantly to solar ROI. These vary by utility and are separate from state and federal programs — meaning they stack.
44 states have net metering policies requiring utilities to credit rooftop solar customers for excess generation exported to the grid. Rates and terms vary significantly.
Many utilities pay $100–300/kW for home battery installation and enrollment in demand response programs. Xcel Energy pays up to $5,500 in Colorado. Check your utility's website for current programs.
Utilities in 44 states apply community solar bill credits directly to subscriber accounts. Credits appear as line items on your monthly bill — reducing what you owe to the utility.
Utilities and grid operators pay customers to reduce usage during peak demand events. Programs like Xcel's AC Rewards and OhmConnect pay $100–300+/yr with no hardware required.
What expired and what
still works.
The 2025 budget reconciliation process (the “Big Beautiful Bill”) eliminated the residential solar purchase tax credit. Here's exactly what changed and what didn't.
What's available in
your state.
| State | Solar law | State credit | HEAR active | Net metering | CS available |
|---|---|---|---|---|---|
| Connecticut | Law pending | $0 | ✓ | ✓ | ✓ |
| Massachusetts | No law | $1,000 | ✓ | ✓ | ✓ |
| New York | Law pending | $5,000 | ✓ | ✓ | ✓ |
| California | Advancing | $0 | ✓ | ✓ | ✓ |
| Colorado | Law signed | $0 | ✓ | ✓ | ✓ |
| Maryland | Law signed | $1,000 | ✓ | ✓ | ✓ |
| Illinois | Advancing | $0 | ✓ | SREC | ✓ |
| Texas | No law | $0 | ✓ | Limited | ✓ |
| New Jersey | Advancing | $0 | ✓ | TREC | ✓ |
| Pennsylvania | No law | $0 | ✓ | ✓ | ✓ |
Sol Country pulls real-time incentive data from DSIRE when you run Find My Power. The table above is a summary — your actual incentive stack may differ.
Incentive data: DSIRE®, NC Clean Energy Technology Center, NC State University / DOE.
Get your complete incentive
stack in 30 seconds.
Sol Country checks federal, state, and utility programs for your specific address — and shows exactly what you qualify for. All 50 states. Free.