Did the solar tax credit end in 2026?
Short version: yes — the 30% federal credit ended for cash and loan buyers after 2025. But that’s only half the story. A lease or PPA still captures the federal value, and Illinois’ own incentives went up. Here’s exactly what changed and what you can still get — sourced, no spin.
What ended — and what didn’t.
The headline most homeowners saw (“the solar tax credit is gone”) is only partly true. Here’s the precise version.
How a lease or PPA still captures the federal value.
Buyers lost the residential credit. But you don’t have to buy to benefit from the federal value — here’s the path that still works in 2026.
The company owns the system — and claims the credit for you.
- A lease or PPA provider owns the system, claims the commercial federal credit (Section 48E), and prices that value into your monthly payment.
- No large upfront cost, and the provider handles the system design, install, and the federal paperwork.
- You still stack Illinois Shines, the $300/kW rebate, and net metering on top — the lease captures the federal piece, Illinois adds the rest.
Solar projects generally must be placed in service by December 31, 2027 to claim the commercial credit, and projects that begin construction by July 4, 2026 may have a longer window. Whether a specific lease or PPA still captures the value depends on the provider’s project and equipment — which is exactly what a review confirms. This isn’t tax advice; confirm the specifics with the provider and the current federal rules.
Illinois’ own incentives didn’t shrink — they grew.
While the federal residential credit ended, the state-level stack for ComEd and Ameren homeowners got more valuable for 2026–27. Here’s the short version.
For every incentive, what each is worth, and exactly how they stack on a real system, see the complete guide: Illinois solar incentives for 2026.
So is solar still worth it in 2026?
Honest answer: it depends on how you pay. For a cash or loan buyer, losing the 30% federal credit raises the upfront cost — but the Illinois stack and rising rates still drive the math. For a lease or PPA, the provider captures the federal value, so you sidestep the upfront cost entirely. Which one fits comes down to your home, roof, usage, and goals. For the full picture, see whether solar is worth it in Illinois in 2026 — and if a high bill is what brought you here, why your ComEd or Ameren bill is so high.
The federal credit moved. Rising rates didn’t.
The other half of the math is what staying fully on the grid costs over time — and Illinois rates have climbed sharply into 2026. The calculator below estimates your next 25 years of bills using public Illinois rate data, and how much solar and battery could offset. It’s an honest estimate, not a quote.
See what doing nothing could cost you.
Match it to your home and watch the chart move. Every figure is an honest estimate — and you control every assumption behind it.
A starting estimate from typical Illinois usage. Know your real bill? Switch to “I know my bill” for a closer number.
An assumption you control — not a prediction. Illinois supply prices recently jumped far more than this in a single year.
The share of your power a well-sized system might cover. Most good-fit homes land near 80–100%.
(estimate, before system cost)
How these estimates work. Figures are illustrative estimates, not a quote, guarantee, or promise of savings. The 25-year cost compounds your monthly bill at the annual increase you select. The “offset” figure is the gross share of that utility cost a system might cover — capped at 100% of your bill, and it does not include system price, financing, taxes, or incentives, which a full review covers. System size is a rough estimate using standard Illinois solar production. When estimating from home size, we assume typical Illinois usage of about 0.40 kWh per sq ft each month for gas-heated homes and 0.75 for electric-heated homes, at an estimated all-in rate of ~16.5¢/kWh (ComEd) or ~15.5¢/kWh (Ameren). Your real numbers depend on your home, roof, shade, usage, system design, and final terms. Rate data last reviewed June 2026 — sources: Plug In Illinois and the Citizens Utility Board.
The 30% didn’t disappear — it moved. The question is which path fits your home.
If the numbers have your attention, the next step is simple: a quick, no-obligation check of whether a lease, PPA, or purchase makes sense for your specific ComEd or Ameren home — and how the Illinois incentives line up. No quote, no pressure.
Check my eligibility →What people get wrong about the 2026 change.
The change was real, but the rumor mill oversimplified it. Four corrections worth knowing.
Did the solar tax credit end? Answered.
Did the solar tax credit end? +
Yes — the federal 30% residential solar tax credit (Section 25D) expired December 31, 2025 under the One Big Beautiful Bill Act. A system bought with cash or a loan in 2026 earns no federal residential credit. The value is still available through a lease or PPA, where the provider owns the system and claims the commercial version of the credit.
Can I still get the 30% in 2026? +
Yes, through a lease or PPA. The company that owns the system claims the commercial Clean Electricity Investment Credit (Section 48E) and prices that value into your monthly payment. As a cash or loan buyer you can no longer claim the residential credit yourself, but the financed path still captures the federal value — subject to federal deadlines.
Does a lease still get the tax credit? +
Yes. Leasing residential solar was not banned. With a lease or PPA, the third-party owner claims the commercial credit and passes the value through as a lower payment. You don’t file for the credit yourself — it’s built into the deal — and you still stack Illinois Shines, the utility rebate, and net metering on top.
Did Illinois solar incentives end too? +
No — they increased. Illinois Shines REC values rose for the 2026–27 program year (around 36% in Ameren territory), and the $300/kW smart-inverter rebate, supply-only net metering, and state property-tax and sales-tax exemptions all still apply. For the full breakdown, see our Illinois solar incentives guide.
Is solar still worth it without the federal credit? +
It depends on how you pay. For cash or loan buyers the upfront cost is higher without the 30% credit, but Illinois incentives and rising rates still drive the math. A lease or PPA sidesteps the upfront cost while still capturing the federal value. Whether it makes sense comes down to your home, roof, usage, and which financing fits.
When’s the deadline for the lease/PPA credit? +
The commercial credit has federal deadlines. In general, a solar project must be placed in service by December 31, 2027 to claim it, and projects that begin construction on or before July 4, 2026 may have a longer window. Whether a specific lease or PPA still captures the value depends on the provider’s project and equipment, so confirm timing with the provider before signing.
The 30% didn’t disappear — it moved. See if it fits your home.
You’ve seen the 2026 reality: the residential credit ended, but a lease or PPA still captures the federal value and Illinois’ incentives went up. The next step is a quick, no-obligation check of which path lines up for your specific ComEd or Ameren home — no quote, no pressure.