The Solar Tax Credit Question Just Flipped

"So I still get 30% back, right?"

No. Not if they're buying the system, cash or loan. That answer flipped at the end of 2025, and a lot of reps are still running a script written for a law that no longer exists. Say the old line to a homeowner who reads their tax software's fine print and you've handed them a reason to cancel before the ink dries.

What actually happened

The federal residential clean energy credit, Section 25D, the one that put 30% of a system's cost against a homeowner's tax bill, ended for anyone who owns the system outright. The IRS states it plainly: the credit does not apply to property placed in service after December 31, 2025 (irs.gov). Congress killed it in the 2025 reconciliation bill, with no phase-down and no extension.

If a homeowner pays cash or finances with a loan today, and their system goes live in 2026 or later, there is no federal tax credit for them. Full stop. That's not a maybe, not a "depends on your accountant." It's gone.

What's still true, and for who

Third-party-owned systems, leases and PPAs, are a different animal. The company that owns the system, not the homeowner, can still claim a federal credit under Section 48E, at 30% for systems this size, generally through the end of 2027 (SEIA tax policy). That credit belongs to the provider. It may or may not show up as a lower monthly rate depending on how that company prices its paper. It is never the homeowner's credit to claim on their own return.

Read that again, because it's the whole story now: ownership no longer earns a federal credit. Only third-party ownership still touches one, and even that flows to the company, not the person on the doorstep.

This inverts the old pitch

For years, "own it and keep the tax credit" was the argument against leasing. That argument is dead. A rep who still says owning beats leasing because of the tax credit is telling a homeowner something false, and a homeowner who checks will find out fast.

That doesn't make ownership the wrong call. Owning still means no monthly payment once it's paid off, no rate escalator, and an asset that's fully theirs. Those are real reasons to buy. The tax credit just isn't one of them anymore, and pretending otherwise costs you credibility the moment it comes up.

What never to say

• "You'll get 30% back from the government."
• "The tax credit covers your down payment."
• "Buying still gets you the same credit as before."
• "It's basically free money."

Every one of those describes a law that expired. Saying it in 2026 isn't optimism, it's a misrepresentation a homeowner can screenshot.

What to say instead

"If you're paying cash or financing with a loan, there's no federal tax credit anymore. That ended at the start of this year. If you're looking at a lease or a PPA, the company providing it can still claim one, and depending on their pricing that may be part of why their rate looks the way it does, but that credit is theirs, not yours."

That's the whole truth in two sentences. No dodge, no stale percentage, no implying a benefit that doesn't exist for the option you're pitching.

What this sounds like at the door

• Homeowner: "So I still get 30% back, right? Like a check?"
• You: "Not anymore, if you're buying it. That credit ended December 31st of last year for anyone who owns their system, cash or loan. It's still around for leases and PPAs, but that one goes to the company that owns the system, not to you."
• Homeowner: "So why would I ever lease then?"
• You: "Lower money down, usually a lower monthly number, and none of the maintenance is on you. The trade-off is you don't own the system and you don't get any tax benefit either way. Which matters more to you, owning the asset or the lowest payment?"

Straight answer, no leftover script from a law that isn't law anymore.

State and utility incentives still vary

Some states and utilities run their own rebates, credits, or net metering programs that have nothing to do with the federal credit and didn't expire with it. Never quote a dollar figure or percentage for one of these without naming the specific program and state, and confirming it's still active before you say it out loud. What was true in your territory last year may not be true this year.

Practice saying it straight

Reciting "25D's dead, 48E's for TPO only" to yourself in the truck is nothing like holding that line when a homeowner pushes back with "my cousin got 30% off last year, why can't I?" That's a live-conversation skill.

Run this exact exchange against an AI homeowner who's heard the old pitch from a neighbor and won't let the outdated version slide. Take a live door and run it now.