For a new installation placed in service after December 31, 2025, the federal Residential Clean Energy Credit under Section 25D is no longer available. A proposal should not assume that you will receive this homeowner credit for a new 2026 installation.
What if my system was installed by the cutoff?
Earlier eligible installations may qualify under the rules for their tax year. The IRS describes a 30% credit for qualifying installations from 2022 through December 31, 2025. Eligibility and qualified costs depend on your circumstances; the contract price alone does not establish the amount you may claim.
What about an unused credit from an earlier year?
The IRS allows qualifying unused credit to be carried forward. That is different from qualifying a new installation after the cutoff. Ask your tax professional how the rules apply to your return.
Does replacing my roof qualify?
Ordinary roof shingles and structural components generally do not qualify simply because solar panels are installed above them. Solar-generating roofing products have different considerations.
Where should I verify my eligibility?
Use the IRS Residential Clean Energy Credit guidance and the Form 5695 instructions for the applicable tax year. Better Earth does not determine your personal tax eligibility. Lease or PPA customers should not assume they can claim a credit for a system owned by another company.
This article addresses the homeowner Section 25D credit, not every state, utility or commercial incentive. Check each program separately before relying on an incentive in a purchase decision.