Question 1

Is solar still worth it in 2026 without the federal tax credit?

Accepted Answer

In most states, yes — but with a longer payback. Net metering policy and your state's electric rate are now the two biggest factors. In high-rate states with full retail net metering (NY, MA, RI, CT), payback is still 7–10 years. In low-rate states with net billing (some southwest, some southeast), it can stretch to 14–18 years.

Question 2

Can I claim the federal solar credit if I signed a contract in 2025 but installation happened in 2026?

Accepted Answer

For the 25D residential credit, eligibility is based on when the system is "placed in service" — typically the date the utility issues permission to operate. If that happened in 2025, you can still claim it on your 2025 taxes. If it happened in 2026, you cannot. Some installers stretched 2025 contracts; the IRS will look at the actual placed-in-service date.

Question 3

Do I need a battery to make solar worthwhile in 2026?

Accepted Answer

In full-retail net metering states, no — the grid acts as your "battery." In net-billing states (California NEM 3.0, Hawaii, parts of AZ), a battery dramatically improves the economics by letting you use your own solar in the evening instead of selling it cheap and buying it back expensive. Battery storage had its own federal credit (Section 25D included batteries 3+ kWh starting 2023), which also expired Dec 31, 2025.

Question 4

How does the property tax exemption actually work?

Accepted Answer

In states that offer it, your home's assessed value for property tax purposes excludes the value added by the solar system — even though the system adds real market value. Over a 20–25 year system life, this exemption can quietly be worth $5,000–$15,000 depending on your local property tax rate and home value. It auto-applies in most states, but a few require filing a form.

Question 5

What's an SREC and is it worth chasing?

Accepted Answer

A Solar Renewable Energy Certificate is a tradable credit you earn for every megawatt-hour your solar system produces. Active markets exist in IL, NJ, MD, DC, PA, and a few others. Contract values range from $40 to $200+ per SREC, and a typical 7 kW system generates 8–10 SRECs per year. In strong markets (Illinois Shines, NJ SRECs), this can add $1,000–$2,000 per year to your solar economics. Worth confirming before sizing your system.

Solar rebates in Montana (2026)