Chapter 4 · Federal Incentives in 2026 — The Real Picture
Big policy update
Major update: the One Big Beautiful Bill Act (OBBBA) signed on July 4, 2025 ended the residential ITC (IRC §25D) early.
As of May 2026, homeowners buying a residential solar system out of pocket no longer get the 30% federal tax credit. This is a complete reversal of the message every salesperson and almost every news article repeated through 2025. Update your mental model accordingly.
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4.1 §25D Residential Clean Energy Credit — terminated
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Questions after reading this section? Send us your utility bill — we will come back within one business day with a recommendation specific to your situation.