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Country guide

Solar in the United States

2026-04-26
last updated
51 states
tariffs tracked
HI 43¢
highest tariff

The US solar incentive landscape changed substantially in mid-2025 with the One Big Beautiful Bill Act (OBBBA), which terminated §25D Residential Clean Energy Credit for systems placed in service after Dec 31, 2025. State-level programs and net metering remain the primary drivers for residential solar economics.

Federal §25D terminated

Residential Clean Energy Credit no longer applies to systems placed in service after December 31, 2025. Pre-2026 installations may still claim under prior rules.

Federal credits

§25D Residential Clean Energy Credit: terminated for systems placed in service after Dec 31, 2025 (OBBBA, July 2025). Pre-2026 installs may still claim under prior rules — see IRS Form 5695 instructions.

§48E Commercial Clean Electricity Credit: partially preserved with phase-down. Applicable to commercial and third-party-owned residential (e.g., solar leases).

Authoritative sources: IRS, Department of Energy, SEIA.

State-level programs (Tier-1 states)

  • California: Net Energy Metering (NEM) 3.0, SGIP storage rebates
  • Texas: property tax exemption, utility rebate programs (Austin Energy, CPS)
  • New York: NY-Sun, state tax credit, property tax abatement
  • Massachusetts: SMART program, state tax credit
  • Florida: property tax exemption, sales tax exemption, no state tax credit
  • Arizona: state tax credit ($1,000), solar sales tax exemption
  • New Jersey: SuSI program (replaced SREC)

Authoritative aggregators

DSIRE (Database of State Incentives for Renewables & Efficiency, NC State University) is the comprehensive reference for US programs. energy.gov maintains the federal-side guidance.

Useful tools for US users