Solar Panel Cost After the Federal Homeowner Credit Ended

A new 2026 homeowner solar installation does not qualify for the federal 25D credit. The former 2033–2034 step-down schedule is no longer the basis for a new project budget.

Start with the full installed quote

For an illustrative $25,200 solar installation, the federal homeowner credit for a new 2026 installation is $0. The starting budget is $25,200 before separately verified local incentives, financing charges or additional work. It is not $17,640 after a presumed 30% credit.

Compare quotes with the same system size, equipment, roof scope, electrical work, warranty and production assumptions. Ask the installer to separate a cash price from financing costs.

Installation timing matters

The IRS treats the expenditure as made when original installation is completed. Paying before December 31, 2025 does not qualify a project whose installation is completed later. A valid carryforward from an earlier eligible installation is separate from new spending.

Coordinate solar, the roof and your reserve

Have the roof assessed before scheduling panels. Compare doing necessary roof work first with the later cost of removing and reinstalling panels. Keep roof work and solar on separate quote lines; do not assume a roof replacement earns a federal solar credit.

Model electricity savings from your own usage, the current utility tariff and export rules. Compare a battery separately for backup needs and time-of-use savings; do not add a presumed 30% homeowner credit to a new battery installation.

Bring the quotes, roof condition and installation timeline into your home plan. Use HomeScore cost ranges for planning, then replace assumptions with written bids.

Sources and review date

Reviewed October 13, 2026. IRS: Energy Efficient Home Improvement Credit; IRS: Residential Clean Energy Credit. Confirm eligibility for your installation and tax year before filing.