The 30% federal tax credit is gone. But with panel costs down 60% since 2015 and electricity rates climbing, solar still saves thousands. Here's the post-credit math.
The Residential Clean Energy Credit — the 30% federal tax credit that made solar installations dramatically more affordable — stepped down to 0% for residential projects at the end of 2025. The headline reaction was predictable: solar is dead for homeowners. The reality is far more nuanced. Panel costs have dropped so dramatically over the past decade that solar remains financially attractive for millions of homeowners even without the federal credit. State-level incentives, property tax exemptions, and rising electricity rates continue to make the math work. Here's what the post-credit solar landscape actually looks like in 2026.
The Residential Clean Energy Credit — the 30% federal tax credit that made solar installations dramatically more affordable — stepped down to 0% for residential projects at the end of 2025. The headline reaction was predictable: solar is dead for homeowners. The reality is far more nuanced. Panel costs have dropped so dramatically over the past decade that solar remains financially attractive for millions of homeowners even without the federal credit. State-level incentives, property tax exemptions, and rising electricity rates continue to make the math work. Here's what the post-credit solar landscape actually looks like in 2026.
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