Federal solar credits
The 2027 solar deadline, explained for Oregon homeowners
The homeowner tax credit is gone, but a federal credit still applies to solar a third party owns, until the end of 2027. Here's what that means for your options.
- Oregon-owned since 2009
- 3,500+ systems installed
- Updated November 4, 2026
The short answer
The 30% federal credit for solar a homeowner buys (Section 25D) ended on December 31, 2025. Solar owned by a third party, through a lease, prepaid lease or PPA, can still qualify for the Section 48E credit if it is placed in service by December 31, 2027. Home batteries are not subject to that 2027 deadline. In Oregon, National Solar offers prepaid leases to PGE customers now, with Pacific Power coming soon.
Updated
- Homeowner credit (25D)
- Ended December 31, 2025
- Leased solar credit (48E)
- In service by December 31, 2027
- Applies to
- Leases, prepaid leases and PPAs
- Home batteries
- Not subject to the 2027 deadline
- Prepaid lease
- PGE customers now; Pacific Power soon
- When to start
- Sign early in 2027 at the latest
Timeline
The dates that matter
| Date | What happens | Who it affects |
|---|---|---|
| December 31, 2025 | Section 25D, the 30% Residential Clean Energy Credit, ended for new expenditures. | Homeowners who buy solar or batteries with cash or a loan |
| July 4, 2026 | Cutoff for starting construction under the older 48E phase-out rules. | Third-party owners (leases, PPAs) that started projects before this date |
| December 31, 2027 | Solar that began construction after July 4, 2026 must be placed in service by this date to claim 48E. | Leased, prepaid-leased and PPA solar |
| After 2027 | Energy storage stays eligible for 48E on a longer schedule under current law. | Third-party-owned home batteries |
December 31, 2025
- What happens
- Section 25D, the 30% Residential Clean Energy Credit, ended for new expenditures.
- Who it affects
- Homeowners who buy solar or batteries with cash or a loan
July 4, 2026
- What happens
- Cutoff for starting construction under the older 48E phase-out rules.
- Who it affects
- Third-party owners (leases, PPAs) that started projects before this date
December 31, 2027
- What happens
- Solar that began construction after July 4, 2026 must be placed in service by this date to claim 48E.
- Who it affects
- Leased, prepaid-leased and PPA solar
After 2027
- What happens
- Energy storage stays eligible for 48E on a longer schedule under current law.
- Who it affects
- Third-party-owned home batteries
"Placed in service" generally means installed, inspected and approved to operate, not just signed. Foreign-entity (FEOC) sourcing rules also apply to newer projects.
What it means
How each way of going solar is affected
| Option | Federal credit | What still makes it pay |
|---|---|---|
| Cash purchase | None since 2026 | Rising rates (Oregon average up 41% since 2021), Energy Trust incentives, net metering |
| Loan | None since 2026 | Fixed payment that doesn't rise while utility rates do |
| Prepaid lease | Claimed by the system owner, reflected in a lower price | One upfront payment, no monthly bill, credit value captured before the 2027 deadline |
| Monthly lease or PPA | Claimed by the system owner | $0 down, but payments often escalate each year |
| Battery added later | None if you buy it; third-party-owned storage keeps 48E longer | Outage backup, utility battery programs, time-of-day savings |
Cash purchase
- Federal credit
- None since 2026
- What still makes it pay
- Rising rates (Oregon average up 41% since 2021), Energy Trust incentives, net metering
Loan
- Federal credit
- None since 2026
- What still makes it pay
- Fixed payment that doesn't rise while utility rates do
Prepaid lease
- Federal credit
- Claimed by the system owner, reflected in a lower price
- What still makes it pay
- One upfront payment, no monthly bill, credit value captured before the 2027 deadline
Monthly lease or PPA
- Federal credit
- Claimed by the system owner
- What still makes it pay
- $0 down, but payments often escalate each year
Battery added later
- Federal credit
- None if you buy it; third-party-owned storage keeps 48E longer
- What still makes it pay
- Outage backup, utility battery programs, time-of-day savings
Planning
Why starting in early 2027 matters
Solar isn't placed in service on the day you sign. Design, permitting, utility interconnection and final inspection take weeks to months, and installers' calendars fill up as a deadline approaches.
If you want the federal credit built into a prepaid lease, plan to sign early enough in 2027 that your system can be fully approved and operating before December 31.
Book a site assessment and get a design before mid-2027.
If your roof needs replacing in the next few years, do it before solar goes on.
Ask any installer how they'll make sure your system is placed in service by the deadline.
Three ways to go solar
$0 down options available. At your free estimate, we price each one against your current power bill.
Why Oregon chooses National Solar
One local team designs, installs, and services every system, backed by Oregon's top solar honors.
Oregon homeowners trust National Solar
Hundreds of 5-star reviews from Bend to the coast, from customers who chose a local team they can still call years after installation.
Before the deadline
See whether a prepaid lease or ownership is better for your home
We'll compare cash, loan and prepaid lease pricing for your roof and utility, side by side. Free and local.
2027 solar deadline questions
Straight answers from the local team.
Sources
Updated by the National Solar team.
- IRS: Residential Clean Energy Credit (Section 25D)
- IRS: Clean Electricity Investment Credit (Section 48E)
- National Solar Oregon electricity rate data (utility tariffs and EIA averages)
National Solar is not a tax advisor. Federal credit eligibility depends on who owns the system, when construction begins and when it is placed in service. Confirm your situation with a tax professional. Incentive amounts vary by utility and income and are not guaranteed.