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Is there still a federal solar tax credit in 2026?

Updated Oct 28, 2026 · By No BS Clean Energy · Sources below

First published Sep 28, 2026. Revised Oct 28, 2026: the end date re-checked against the IRS notice.

On this page
  1. The short answer
  2. What ended?
  3. What does finished mean?
  4. What is left in Rhode Island?
  5. What if a page still counts it?
  6. Quick answers

The short answer

No. The federal tax credit for home solar has ended. It is gone for systems finished after Dec 31, 2025Gone for systems finished after Dec 31, 2025Federal solar tax credit for homeowners (section 25D)A system counts as finished when it is installed, not when you sign or pay.IRS, FAQs for modification of sections 25C, 25D ... under Public Law 119-21 (FS-2025-05, Aug 21, 2025)Termination table row 25D; Q&A citing § 25D(e)(8)(A)Verified Sep 28, 2026. Finished means the panels are installed. The day you sign or pay does not count. So a home system that goes up now gets no federal credit. Rhode Island still has a state grant of up to $14,500$14,500The most the solar grant can payThe grant is paid to your installer, who takes it off your contract price.RI Commerce, Renewable Energy Fund, Small-Scale Request for Projects (rev. 4/6/26)Project Funding table, Max column: '$14,500/project'Verified Oct 28, 2026. You must own the home and the systemYou must own the home and the system. Leases and PPAs don't qualify.Who can get the grantYou must also own the property, and it must be in Rhode Island.RI Commerce, Renewable Energy Fund, Small-Scale Request for Projects (rev. 4/6/26)Things to know, bullet 6Verified Oct 28, 2026.

What ended?

The credit was section 25D of the federal tax code. A tax credit lowers the tax you owe, and this one was for solar on your home. The IRS says it ended for systems finished after Dec 31, 2025Gone for systems finished after Dec 31, 2025Federal solar tax credit for homeowners (section 25D)A system counts as finished when it is installed, not when you sign or pay.IRS, FAQs for modification of sections 25C, 25D ... under Public Law 119-21 (FS-2025-05, Aug 21, 2025)Termination table row 25D; Q&A citing § 25D(e)(8)(A)Verified Sep 28, 2026.

What does finished mean?

The date that counts is the day the install is done. A system counts as finished when it is installedGone for systems finished after Dec 31, 2025Federal solar tax credit for homeowners (section 25D)A system counts as finished when it is installed, not when you sign or pay.IRS, FAQs for modification of sections 25C, 25D ... under Public Law 119-21 (FS-2025-05, Aug 21, 2025)Termination table row 25D; Q&A citing § 25D(e)(8)(A)Verified Sep 28, 2026, not when you sign or pay.

So a contract signed in 2025 does not help if the panels went up in 2026. Paying in 2025 does not help either.

When the install was doneFederal home solar credit
By Dec 31, 2025The end date does not apply. Ask a tax preparer about your return.
After Dec 31, 2025None, even if you signed or paid in 2025.

What is left in Rhode Island?

Rhode Island has its own grant for home solar. The state's Renewable Energy Fund pays up to $14,500$14,500The most the solar grant can payThe grant is paid to your installer, who takes it off your contract price.RI Commerce, Renewable Energy Fund, Small-Scale Request for Projects (rev. 4/6/26)Project Funding table, Max column: '$14,500/project'Verified Oct 28, 2026 for solar. Add a battery and it pays $5,000$5,000Extra grant for adding a home batteryOnly with a solar project that also gets the grant. The battery money has its own pot and can run out on its own. Battery projects get 18 months to finish.RI Commerce, REF Energy Storage Adder Request for Projects (v6, rev. 4/6/2026)Project Funding, 'Small Scale Program' rowVerified Oct 28, 2026 more. You must own the home and the systemYou must own the home and the system. Leases and PPAs don't qualify.Who can get the grantYou must also own the property, and it must be in Rhode Island.RI Commerce, Renewable Energy Fund, Small-Scale Request for Projects (rev. 4/6/26)Things to know, bullet 6Verified Oct 28, 2026. Your installer takes the grant off your contract price. See how the state grant works, with who qualifies and the round dates.

Other state rules still help. Net metering credits your bill for the power your panels make. And there is no RI sales tax on solar panelsNo RI sales tax on panels, inverters or rackingRI sales tax on solar equipmentThe law does not list batteries.R.I. Gen. Laws § 44-18-30(57), Renewable energy products§ 44-18-30(57)Verified Sep 28, 2026. See every Rhode Island incentive.

What if a page still counts it?

Then it is out of date. A page, quote or calculator that takes a federal credit off your price is wrong for any system installed after Dec 31, 2025.

Ask the seller for the price with no federal credit in it. Then check that the state grant shows on the contract as its own line.

Quick answers

Is the federal solar tax credit gone?
Yes, for home systems finished after Dec 31, 2025.
Does signing a contract in 2025 count?
No. What counts is the day the system is installed.
What can Rhode Island homeowners still get?
A state grant, if you own the home and the system. It comes off your contract price.
Should my quote show a federal credit?
No. A quote that takes it off your price is out of date.

Sources

  1. IRS, FAQs for modification of sections 25C, 25D ... under Public Law 119-21 (FS-2025-05, Aug 21, 2025). Read Sep 28, 2026.
  2. RI Commerce, Renewable Energy Fund, Small-Scale Request for Projects (rev. 4/6/26). Read Oct 28, 2026.
  3. RI Commerce, REF Energy Storage Adder Request for Projects (v6, rev. 4/6/2026). Read Oct 28, 2026.
  4. R.I. Gen. Laws § 44-18-30. Read Sep 28, 2026.