Solar Tax Credit 2026: What's Still Available

Good news: the federal solar Investment Tax Credit (ITC) remains at 30% through 2032, thanks to the Inflation Reduction Act. This is the single biggest incentive for going solar, and it's still fully available in 2026.

How the Federal Solar Tax Credit Works

• 30% of your total system cost — This includes solar panels, batteries, inverters, installation labor, permitting, and more.
• Dollar-for-dollar tax reduction — Unlike a deduction, a credit directly reduces the taxes you owe. If you owe $8,000 in taxes and have an $8,000 credit, your tax bill goes to $0.
• Rollover available — If your credit exceeds your tax liability for the year, you can roll the remaining credit into the next tax year.

What Qualifies

• Solar panels (photovoltaic systems)
• Battery storage systems (standalone batteries now qualify too)
• Inverters and electrical panel upgrades
• Installation labor and permitting costs
• The system must be installed on your primary or secondary residence (or a business)
• You must own the system (leases and PPAs don't qualify)

ITC Timeline

• 2022–2032: 30% credit
• 2033: 26% credit
• 2034: 22% credit
• 2035 and after: 0% for residential (unless renewed)

Example Savings

For a solar + battery system costing $32,000 before incentives:

• 30% ITC: $9,600 tax credit
• Net cost after ITC: $22,400
• Effective system cost per watt: significantly lower than sticker price

California State Incentives

In addition to the federal ITC, California offers:

• SGIP (Self-Generation Incentive Program) — Battery rebates for qualifying customers
• DAC-SASH — Free solar for low-income homeowners in disadvantaged communities
• LADWP SIP — Additional per-watt rebate for LADWP customers
• Property tax exemption — Solar systems are exempt from California property tax increases

Calculate your savings with the tax credit or get a free quote.