Is the 30% federal solar tax credit still available in 2026?

Not for homeowners who buy their system. The 25D credit ended for systems placed in service after December 31, 2025. Leased and PPA systems owned by a third party can still be eligible for a federal credit claimed by the owner.

Does the date I sign a contract matter?

For 25D, what mattered was when the system was placed in service (installed and ready to operate), not when you signed or paid. A system that was signed in 2025 but finished in 2026 does not qualify.

Is solar still worth it in Oregon without the federal credit?

Often, yes, but the payback is longer. Oregon rates have risen quickly, especially for PGE and Pacific Power customers, and Energy Trust of Oregon incentives, the Oregon Solar + Storage Rebate when open, and the property-tax exemption still lower the cost.

Is there still a federal credit for home batteries?

Homeowner-owned batteries were part of 25D, so they lost the federal credit with it. Third-party-owned storage can still qualify for the business credit. Utility programs such as Pacific Power Wattsmart Battery and PGE Smart Battery pay for enrolled batteries.

Last reviewed October 2026

The federal solar tax credit in 2026

The 30% homeowner credit ended for systems installed after 2025. Here is what still applies to Oregon homeowners.

Finished residential solar install on a gray farmhouse-style Oregon home with an EV in the driveway.

Short answer: if you buy a solar system that is placed in service in 2026 or later, there is no federal residential tax credit. If a third party owns the system through a lease or PPA, a federal credit can still apply to the owner and lower what you pay.

No federal homeowner credit

Buying solar with cash or a loan

The Section 25D Residential Clean Energy Credit does not apply to systems placed in service after December 31, 2025. Oregon incentives, net metering and the property-tax exemption still apply.

Federal credit can still apply

Leasing or a power purchase agreement

When a third party owns the system, that owner may claim the business clean-energy credit and pass part of the value to you through a lower payment. Eligibility depends on construction and in-service deadlines, so ask any provider how they qualify.

Claim on your return

Systems installed in 2025 or earlier

If your system was placed in service by December 31, 2025, you can still claim 25D for that tax year on IRS Form 5695, and carry forward any unused credit.

Still available

Oregon incentives that remain in 2026

Energy Trust of Oregon cash incentives for PGE and Pacific Power customers.
The Oregon Solar + Storage Rebate Program, when a funding round is open.
Oregon's property-tax exemption on the value solar adds to your home.
Net metering, which credits surplus solar against later use.
Utility battery programs such as Pacific Power Wattsmart Battery.

See all 2026 Oregon incentives Lease vs. purchase

Tax credit FAQ

Federal solar credit questions

This page is general information, not tax advice. Federal rules come from the 2025 budget reconciliation law and IRS guidance on Sections 25D and 48E. Talk with a tax professional about your situation.