Solar tax credit checker: can your quote still use the credit in 2026?

How this check thinks.

The Residential Clean Energy Credit (§25D) applies to qualified residential clean energy property — solar electric, solar water heating, small wind, geothermal heat pumps, battery storage ≥3 kWh, fuel cells — installed at the homeowner's residence (main home or second home for most categories). The IRS-controlling date is the year the system is placed in service, which the Form 5695 (2025) instructions define as the year installation is complete.

Window: 2022 through Dec 31, 2025. The credit is 30%of qualified costs. It's non-refundable (you need tax liability to claim it) but carries forward indefinitely.

What ended the window: a 2025 federal law change set a hard placed-in-service deadline of Dec 31, 2025 for the residential credit. The IRS Form 5695 (2025) instructions¹ state this verbatim: "You can't claim residential clean energy credits for expenditures made after December 31, 2025."

TPO carve-out:Leased, PPA, and prepaid solar arrangements may still capture credit value through the business-side §48E credit, available through 2027 — but the credit goes to the system's third-party owner, not the homeowner's tax return. Whether the third party passes that value through reduced lease/PPA payments is a contract question.

What this check can't see: State-level incentives (point to DSIRE for those), utility rebates, AMT interactions, and the rest of your tax picture. This page is not tax advice; treat outputs as input to a conversation with a tax professional, not a final answer.

Calculator FAQ

What does "placed in service" mean exactly?

Per IRS Form 5695 (2025) instructions¹: "costs are treated as being paid when the original installation of the item is completed." Not the contract date. Not the deposit. Not the permit. Installation must be fully completeduring the eligibility window. A 2025 contract with the install slipping into January 2026 doesn't qualify.

Is the credit refundable?

No — it's nonrefundable. You can only use it to offset federal income tax you actually owe. If your eligible credit exceeds your tax liability in the install year, the excess carries forward to future years indefinitely until used. Retirees with low tax liability often need 2–3 years of carryforward to fully realize the credit; the checker approximates the years needed if you fill in your tax liability.

What if my installer is still quoting 30% on a 2026 install?

Ask which section of the Internal Revenue Code authorizes the credit for the install year. The correct answer for an owned residential system installed in 2026 or later is: §25D is no longer available. If the salesperson insists, request the installer's tax counsel to put the position in writing. They won't — because the IRS instructions¹ are explicit on the Dec 31, 2025 cutoff.

Are batteries eligible?

Yes — battery storage with capacity ≥3 kWh installed in conjunction with a residential solar system qualifies for §25D under the same eligibility window and percentage (30%, through Dec 31, 2025).

1. 1. IRS Form 5695 (2025) instructions, verbatim: "You can't claim residential clean energy credits for expenditures made after December 31, 2025." The One Big Beautiful Bill Act, signed July 4, 2025, terminated §25D for systems placed in service after that date. Verified 2026-05-16. irs.gov/instructions/i5695 ↩