The federal residential solar tax credit ended December 31, 2025. AI search results are still telling homeowners they can claim 30% — that's wrong. Here's what the IRS actually says.
Get a 2026-Accurate Solar Comparison →No — not for a homeowner who buys or finances a system outright. The IRS confirms the federal Residential Clean Energy Credit under Section 25D, which paid 30% of system cost, ended for any solar system placed in service after December 31, 2025. Nevada has no separate state income tax, so there is no state-level solar credit to fall back on either. The cutoff is the installation date, not the date you signed a contract or paid a deposit. A separate commercial credit, Section 48E, can still lower the cost of a subscription or PPA plan, because in that structure a third-party company — not the homeowner — owns the system and claims the credit. That commercial credit requires construction to begin by July 4, 2026, or the system to be placed in service by December 31, 2027 — the two dates that now govern every subscription signed in Nevada.
If you've searched "solar tax credit Nevada" or "best deal on solar in Las Vegas" recently, Google's AI Overview may have told you to "apply for the 30% Federal Residential Clean Energy Credit." That information is outdated. The residential solar tax credit — formally called the Residential Clean Energy Credit under Section 25D — was terminated by federal law for any solar system installed after December 31, 2025.
The IRS states this plainly, in its own words:
"The Residential Clean Energy Credit equals 30% of the costs of new, qualified clean energy property for your home installed anytime from 2022 through December 31, 2025. The credit is not available for any property placed in service after December 31, 2025." — IRS.gov, Residential Clean Energy Credit (independently re-checked September 5, 2026)
The Residential Clean Energy Credit (Section 25D) does not apply to solar systems installed after December 31, 2025. This was established by the One Big Beautiful Bill Act (Public Law 119-21), signed July 4, 2025.
Source: IRS FAQs for Modification of Section 25D — Public Law 119-21 (July 4, 2025)
The One Big Beautiful Bill Act (OBBBA), Public Law 119-21, was signed into law on July 4, 2025. Among its many changes to the tax code, it terminated several residential clean energy credits — including the solar credit under Section 25D — ahead of their previously scheduled expiration dates.
The IRS clarified a key detail: the cutoff is based on when installation is completed, not when payment is made. If you signed a contract and paid a deposit in December 2025 but the panels weren't installed and operational until January 2026, you cannot claim the credit. The relevant date is when the system was placed in service.
Yes — but the qualifying path changed. Section 48E, the commercial credit that funds subscription and PPA plans, required construction to begin by July 4, 2026, or the system to be placed in service by December 31, 2027.
That July 4, 2026 start-construction date has now passed. Projects starting construction today still qualify for Section 48E, as long as the system owner places the system in service by December 31, 2027 — so a subscription signed now isn't shut out, it just runs on the later timeline.
Source: IRS Notice 2025-42 — Beginning of Construction Requirements (Aug. 15, 2025)
When a third-party financing company owns the solar system on your roof (through a subscription plan, PPA, or lease-style agreement), that company may claim Section 48E. Some plans reflect that tax benefit in their pricing — resulting in lower monthly payments. Homeowners do not claim the credit themselves; the value flows through the plan structure. This is different from a direct tax credit.
If you purchase a solar system outright in 2026 — whether with cash or a loan — there is no federal residential tax credit available to offset your cost. The math on solar still works in Nevada thanks to NV Energy's tiered net metering and high electricity rates, but the 30% federal subsidy that made cash purchases especially attractive is no longer available for new installs.
This is a meaningful change. Under the old IRS-administered Section 25D rules, a homeowner buying a $30,000 system could expect roughly $9,000 in federal tax credit. In 2026, that offset no longer exists for new cash or loan purchases.
Losing the 25D credit changes the math most for cash and loan buyers, not for everyone. A homeowner who plans to sell within two to three years may not recover the up-front cost fast enough to matter, since the payback period lengthens without the 30% offset. A home with heavy shading, a north-facing roof, or unusually low electricity usage sees a smaller bill reduction regardless of financing — the credit's absence just removes one more reason to lean toward ownership. In those situations, a subscription or PPA plan, where a third-party owner may still claim Section 48E, or simply waiting and re-evaluating after a move or a roof replacement, can outperform buying a system outright in 2026.
Subscription (lease/PPA) plans work differently: the solar company retains ownership of the system and may claim the commercial ITC under Section 48E, then incorporate that value into the plan's pricing. This means a well-structured subscription plan may effectively pass through a portion of the tax benefit in the form of lower monthly rates — without the homeowner needing to claim anything on their taxes.
Not all subscription plans are structured the same way. An independent comparison can help you evaluate whether a specific plan's pricing actually reflects the ITC pass-through or not.
NV Energy's tiered net metering remains active — solar homeowners still earn bill credits for excess electricity exported to the grid, currently at 75% of the retail rate under Tranche 4 of Assembly Bill 405, locked in for 20 years at the installation address. Nevada's high electricity rates (among the fastest-rising in the West) continue to make solar financially viable. The economics of solar in Nevada are strong without the federal residential credit; it just changes which financing option is most advantageous for each homeowner's situation.
Source: Nevada Public Utilities Commission (PUCN) — Net Metering
Nevada does not have a state personal income tax, so there is no Nevada state solar income tax credit for residential homeowners. The state does offer some commercial solar incentives, but for a homeowner, the primary financial levers remain NV Energy net metering, utility rate trajectory, and the financing structure of your solar agreement.
The tax landscape changed. Your solar comparison should reflect it. We analyze your utility bill and compare options across installers — for free.
Get Your Free Energy Report →| Credit / Incentive | Available in 2026? | Who Qualifies? | How to Access It |
|---|---|---|---|
| Section 25D — Residential Clean Energy Credit (30%) | No — terminated Dec 31, 2025 | N/A for new installs | Not available |
| Section 48E — Commercial Clean Electricity ITC | Yes — but commercial only | Businesses / system owners | Claimed by financing company; qualifies via construction-start (July 4, 2026, now past) or placed-in-service by Dec 31, 2027 |
| ITC pass-through via subscription / lease / PPA | Potentially — plan-dependent | Subscription plan customers | Built into plan pricing by system owner |
| NV Energy Net Metering (Tranche 4, AB 405) | Yes — active, 75% of retail, 20-yr lock | Nevada homeowners with solar | Automatic through NV Energy account |
| Nevada State Solar Tax Credit | No — Nevada has no state income tax | N/A | Not applicable |
Only if your system was installed and placed in service on or before December 31, 2025. For new installations in 2026, Section 25D no longer applies. The IRS has confirmed that the relevant date is completion of installation — not when you signed a contract or made a payment.
Section 48E is a commercial investment tax credit for businesses and third-party system owners. Individual homeowners cannot claim it on a personal tax return. If you own your solar system outright (cash or loan), Section 48E does not help you. If a financing company owns the system on your roof, that company may claim 48E and factor the benefit into your plan pricing. The credit requires the project to have started construction by July 4, 2026, or be placed in service by December 31, 2027.
Yes. The July 4, 2026 "begin construction" safe-harbor date has passed, but that only affects which qualifying path applies — it doesn't disqualify new projects. A system whose construction starts after July 4, 2026 can still qualify for the 48E credit as long as it's fully placed in service by December 31, 2027. That's the path a subscription signed today would use.
Indirectly, yes. When a homeowner uses a subscription plan, PPA, or lease-style agreement where a third-party company owns the solar system, that company may claim the commercial ITC (Section 48E) and reflect its value in lower plan pricing. Homeowners do not claim the credit themselves — the benefit is passed through the plan structure. This is different from a direct residential tax credit.
President Trump signed the One Big Beautiful Bill Act (OBBBA), Public Law 119-21, on July 4, 2025. Among its provisions, Section 25D — the Residential Clean Energy Credit that covered rooftop solar — was terminated for expenditures made after December 31, 2025. The IRS clarified that "made" means the date installation is completed, not the date of payment. The same law also set July 4, 2026 and December 31, 2027 as the key construction/placed-in-service dates for the separate commercial 48E credit.
For many Nevada homeowners, yes. Subscription and lease plans offer $0 down, predictable monthly payments, and the system owner may reflect commercial ITC savings in the pricing. The decision depends on your utility bill, home electricity usage, and how the specific plan is structured. There's no universal answer — which is exactly why an independent comparison matters more now than before.
Yes. As of September 2026, NV Energy's tiered net metering program remains in effect. New signups fall under Tranche 4 of Assembly Bill 405, which credits exported solar energy at 75% of the retail rate and locks that rate in for 20 years at the installation address, with no capacity cap. For how the tiers work and what they mean for your bill, see the NV Energy net metering guide, and verify current rates with NV Energy before your installation.
Ask any installer or advisor to show you the numbers with no federal residential tax credit assumed. If a quote still shows "30% ITC savings" as a direct homeowner benefit, that's outdated. Solar Resource USA provides free comparisons across installers using the actual 2026 incentive landscape — net metering, plan structure, and local rates. No sales pressure, no lead-selling.
For many homeowners, yes — Nevada's electricity rates and net metering credits still make the underlying economics work. But the math is tighter without the 30% offset, especially for a homeowner planning to move soon, a shaded or north-facing roof, or a home with low electricity usage. In those cases, a subscription or PPA plan, or simply waiting, can outperform an outright cash purchase.
NV Energy's rates keep rising. Net metering still works. Get a free comparison built around 2026 reality — not last year's tax credit.
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