Skip to content

Solar & battery solutions for homeowners

1-844-4-SUNBURST
Sunburst Solar homeGet a Quote

2026 Solar Incentive Guidance

Solar Tax Credit and Incentive Updates.

Review current federal, state, and utility information for residential and business-owned solar projects. Rules, eligibility, funding, and project timing can change, so every potential incentive must be verified before it is included in a proposal.

Request a Property Review Explore Service Areas

Current guidance

2026 Federal Snapshot

Residential

The federal Residential Clean Energy Credit is not available for expenditures made after December 31, 2025.

Business and Commercial

Some qualifying business and commercial solar projects may still have separate federal clean-electricity investment options, subject to current taxpayer, project, timing, labor, sourcing, and other requirements.

State and Utility

State, district, and utility programs may still be available, but eligibility, funding, and application windows vary by address and can change.

Reviewed August 4, 2026

Informational only—not tax, legal, or accounting advice.

Residential Credit Update

Current IRS guidance ends the federal residential clean-energy credit for expenditures made after December 31, 2025.

Business and Commercial Projects

Separate federal provisions may still apply to qualifying business-owned projects, but the taxpayer and project must satisfy current rules.

State and Utility Programs

Program availability depends on the property address, service territory, funding, and current application requirements.

Residential Update

What Changed for Homeowners

The IRS states that the Section 25D Residential Clean Energy Credit cannot be claimed for expenditures made after December 31, 2025. For this credit, an expenditure is generally treated as made when the original installation is completed. Paying for a system before the deadline does not preserve the credit when installation is completed after December 31, 2025.

Completion Date Matters

Residential federal-credit treatment depends on the law and the installation-completion timing described by the IRS.

Prior-Year Tax Questions

Questions involving prior expenditures, carryforwards, amended returns, or individual filing circumstances must be reviewed with a qualified tax professional.

State Programs Are Separate

The end of the federal residential credit does not automatically end every state, district, or utility program.

Business and Commercial Projects

Separate Federal Options May Still Apply

Business-owned and commercial solar projects are not governed by the expired residential Section 25D credit. Some qualifying taxpayers and projects may still be eligible for separate federal clean-electricity investment incentives, including Section 48E, subject to current project and taxpayer requirements.

Qualified Taxpayer and Project

Eligibility depends on the taxpayer, ownership structure, qualified facility or storage technology, project basis, and the applicable tax rules.

Construction and Service Dates

Current law includes construction-start and placed-in-service timing rules for applicable solar facilities. Confirm the current rules before relying on a federal incentive.

Labor, Sourcing, and Compliance

Prevailing-wage, apprenticeship, domestic-content, energy-community, low-income, and prohibited-foreign-entity rules may affect eligibility or the available credit amount.

Professional Tax Review

Sunburst does not determine tax eligibility. The taxpayer and qualified tax advisers must review the project under current law.

Current solar-facility timing restriction

Current IRS guidance states that the Section 48E credit terminates for applicable solar facilities placed in service after December 31, 2027 when construction begins after July 4, 2026.

Solar and Storage Can Have Different Rules

Qualified energy-storage technology may be addressed separately under Section 48E. Do not assume that every solar-facility timing rule applies identically to storage. Review the current IRS guidance for the specific project.

State and Utility Programs

Address-Specific Programs Still Matter

State, district, utility, and program-administrator requirements can change independently of federal tax law. Availability must be verified for the property address before a program is included in a proposal.

MarylandReview Current Maryland Programs
VirginiaReview Current Virginia Programs
Washington, D.C.Review Current Washington, D.C. Programs
Other Service AreasRequest an Address-Specific Review
Explore All Service Areas

Verify Before Relying

How to Review a Potential Incentive

  1. Identify the Taxpayer

    Determine whether the project is residential, business-owned, nonprofit, governmental, or another ownership type.

  2. Confirm the Property and Project

    Review ownership, equipment, project timing, utility territory, and proposed system structure.

  3. Verify Current Program Rules

    Check current federal, state, district, utility, funding, application, and documentation requirements.

  4. Review With a Qualified Adviser

    Confirm tax treatment with a qualified tax professional before relying on an incentive in a purchase or investment decision.

Primary-source review

Official Sources Reviewed

These links are provided for current source review. Individual facts and tax treatment should be confirmed with a qualified professional.

Incentive FAQ

Solar Tax Credit and Incentive Questions

Current rules depend on the taxpayer, project, timing, and program. These answers are informational and cannot replace professional tax advice.

Informational only—not tax, legal, or accounting advice.
Is the federal residential solar credit available for projects completed in 2026?

No. Current IRS guidance says the Section 25D Residential Clean Energy Credit is not available for expenditures made after December 31, 2025. For an ordinary installation, the expenditure is treated as made when the original installation is completed.

Post-2025 Residential Energy Credit FAQs
What if I paid for residential solar before December 31, 2025?

Payment before the deadline does not preserve the Section 25D credit when original installation is completed afterward. Prior-year carryforwards, amended returns, and individual filing circumstances should be reviewed under current IRS instructions with a qualified tax professional.

Instructions for Form 5695 (2025)
Can a business or commercial property still qualify for a federal solar incentive?

Some qualifying business-owned projects may qualify under separate federal provisions such as Section 48E. Eligibility is not automatic and depends on the taxpayer, project, timing, ownership, basis, labor, sourcing, and other current requirements.

Clean Electricity Investment Credit
Is Section 48E the same as the former residential credit?

No. Section 25D governed the federal residential credit, while Section 48E is a separate clean-electricity investment framework for qualifying taxpayers, facilities, and energy-storage technology. Its rules and filing requirements are different.

Instructions for Form 3468 (2025)
Can battery storage have separate incentive treatment?

Potentially. Section 48E and Form 3468 address qualified energy-storage technology separately from qualified facilities. A particular storage project is not guaranteed to qualify and should be reviewed under the current rules.

Instructions for Form 3468 (2025)
Does Sunburst determine whether I qualify for a tax credit?

No. Sunburst can help organize project information, but it does not determine tax eligibility or provide tax, legal, or accounting advice. Review any tax position with a qualified tax professional using current official guidance.

Instructions for Form 3468 (2025)

Ready to Review a Solar Project?

Start with your property address, energy use, ownership context, and project goals. Any potential incentive must be verified before it is included in a proposal.

Request a Property Review