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Tax credits for solar panels are expiring

January 06, 2026

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Los Angeles Times

The elimination of tax credits for residential heat pumps, solar panels and batteries will make electrifying your home more expensive in 2026, and tariffs and made-in-America mandates could bring additional costs.

- BY TODD WOODY

Tax credits for solar panels are expiring

SUE OGROCKI Associated Press

SOLAR panels are installed on an Ohio roof.

Just how pricey remains to be seen. New financing models could help keep some solar and battery costs in check, according to Emily Walker, director of insights at online solar marketplace EnergySage.

Here’s what you need to know.

How prices will probably be affected

The expiration of the 30% federal tax credit for solar and battery installations at the end of 2025 doesn’t necessarily make the equipment more costly to buy but for homeowners with a tax liability, it does end the ability to reduce or erase their tax bill.

A typical solar and battery system generated tax credits worth about $10,000.

Tax credits remain for leased solar systems through the end of 2027, though the installer receives the incentive and passes on the savings to homeowners through lower monthly payments or other cost reductions.

A new model of solar ownership

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