For more than a decade, the federal Residential Clean Energy Credit took 30% off the cost of home solar and batteries. That credit is gone for systems you buy and own in 2026, and it changes the math for every homeowner pricing solar this year. A typical installed system with a battery now costs the full sticker price - roughly $11,000-$12,000 more than the same system cost after the credit in 2025.
This guide explains exactly what ended, what still exists (leases, state credits, utility rebates, carryforwards from earlier years), and how the numbers work out in 2026 for an installer quote versus a DIY kit. All kit prices are our store prices before any discount code, checked October 31, 2026. This is general information, not tax advice - confirm your situation with a tax professional.
What happened to the federal solar tax credit
The budget law signed on July 4, 2025 (often called the One Big Beautiful Bill Act, or OBBBA) moved the end date of the Section 25D Residential Clean Energy Credit from 2034 to December 31, 2025. Before that law, homeowners could claim 30% of the cost of solar panels, inverters, racking, wiring, labor and battery storage of 3 kWh or more, with no upper limit. Here is where each federal incentive stands for a homeowner in late 2026.
| Incentive | Who it applied to | Status in 2026 | What to do |
|---|---|---|---|
| Section 25D Residential Clean Energy Credit (30%) | Homeowners who buy solar, batteries, geothermal or small wind | Ended for expenditures after Dec 31, 2025. A 2026 installation does not qualify, even if you signed or paid a deposit in 2025. | If your system was finished in 2025, claim it on your 2025 return (Form 5695). |
| 25D carryforward | Homeowners who could not use the full credit in an earlier year | Unused credit from 2025 or earlier still carries forward to later tax years. | Keep claiming the leftover amount on Form 5695 until it is used up. |
| Section 25C Energy Efficient Home Improvement Credit | Heat pumps, insulation, windows, panel upgrades | Ended after Dec 31, 2025. | No action for 2026 projects. |
| Section 48E (company-owned systems) | Solar companies that own leased or PPA systems on your roof | Still available to the company if construction began by July 4, 2026 or the system is in service by end of 2027; storage keeps a longer runway, with new foreign-component sourcing rules from 2026. | Ask any lease or PPA provider how the credit is reflected in your monthly rate. |
| State tax credits and rebates | Varies by state and utility | Not affected by the federal change. | Check your state energy office and utility before you buy. |
One timing detail trips people up: the credit follows when the expenditure is made, which the tax code ties to the date the original installation is completed, not the contract date. Guidance from tax publishers is consistent that a system signed in 2025 but finished in 2026 does not qualify. If you are unsure which year your system falls into, the date the installation was completed (often close to the utility's permission-to-operate date) is the one to show your tax preparer.
How much more solar costs without the credit
EnergySage's 2026 marketplace data puts the average installed price of residential solar at about $2.60 per watt before incentives, and its average installed home battery at around $15,650. For a typical 9 kW array with one battery, the change looks like this:
- Installed in 2025: 9,000 W x $2.60 = $23,400 for panels, plus $15,650 for the battery = $39,050. After the 30% credit: $27,335.
- Installed in 2026: the same $39,050, with no federal credit. That is $11,715 more out of pocket.
- DIY kit in 2026: the Sungold SGS12K-PM1-450 kit (9 kW of panels, 12 kW hybrid inverter, 16.07 kWh battery) is $10,275. Add a planning budget of $3,500 for a licensed electrician, permit, inspection and miscellaneous parts and you land near $13,775 - about half of what an installed system cost even with the credit in 2025.
The $3,500 figure is a planning number, not a quote. Electrician and permit costs range from about $2,000 for a simple ground mount near the main panel to $5,000 or more for a roof mount with a service upgrade. Even at the high end, the DIY route stays far below the installed price, because the biggest part of an installer's quote is labor, overhead and customer acquisition rather than hardware.
DIY solar cost math for 2026 (step by step)
Use this four-step method to compare any kit with an installer's quote now that there is no 30% credit to subtract.
- Find your array size. Yearly kWh from your bills / (peak sun hours x 365 x 0.75). A home using 900 kWh a month (10,800 kWh a year) at 4.5 sun hours needs about 10,800 / (4.5 x 365 x 0.75) = 8.8 kW. Our solar system size guide walks through this in detail.
- Price the kit per watt of panels. Kit price / panel watts. Because our home kits include a battery and a hybrid inverter, this number already covers storage - unlike the $2.60/W installed average, which is for panels only.
- Add installation you cannot do yourself. Budget for the electrician, permit, inspection, conduit and breakers ($2,000-$5,000), plus racking if the kit does not include it.
- Work out payback. Yearly production x your electricity rate. A 9 kW array at 4.5 sun hours makes about 11,100 kWh a year; at $0.17/kWh that offsets roughly $1,890 a year. $13,775 / $1,890 = about 7.3 years, versus about 20 years for the $39,050 installed system with no credit. Your rate, net metering rules and how much power you use at home all move this number.
2026 kit prices per watt (battery included)
| Kit (in stock) | Panels | Inverter | Battery | Kit price | $/W of panels | All-in estimate* | Installed equivalent** |
|---|---|---|---|---|---|---|---|
| Sungold SGM-5K5E | 1.2 kW | 5 kW, 120V | 5.12 kWh | $3,145 | $2.62 | $6,645 | $18,770 |
| Sungold SGK-5PRO | 2.7 kW | 5 kW, 120V | 10.24 kWh | $4,958 | $1.84 | $8,458 | $22,670 |
| Sungold SGK-8MAX | 5.4 kW | 8 kW, 120/240V | 10.24 kWh | $6,979 | $1.29 | $10,479 | $29,690 |
| Sungold SGH-7.6N3E | 6 kW | 7.6 kW hybrid | 15.36 kWh | $9,121 | $1.52 | $12,621 | $31,250 |
| Sungold SGS12K-PM1-450 | 9 kW | 12 kW hybrid | 16.07 kWh | $10,275 | $1.14 | $13,775 | $39,050 |
| Sungold SGH-11N3E | 12.6 kW | 10 kW hybrid (11.4 kW peak) | 30.72 kWh | $16,757 | $1.33 | $20,257 | $48,410 |
| Sungold SGR-20K32P | 14.4 kW | 20 kW off-grid (2 x 10 kW) | 32.14 kWh | $15,975 | $1.11 | $19,475 | $53,090 |
* Kit price + $3,500 planning budget for electrician, permit and inspection. ** Same array at $2.60/W installed plus one $15,650 installed battery (EnergySage 2026 averages); actual quotes vary widely by state.
The pattern is clear: kits of 5 kW and up cost $1.11-$1.52 per watt of panels with a battery included, while installed solar averages $2.60 per watt without one. Small kits look worse per watt because the battery and inverter are a larger share of the price - their value is in backup and off-grid use, not bill savings.
Lease, PPA or buy? The 2026 trade-off
Because the 48E credit still goes to companies that own systems, leases and power purchase agreements (PPAs) became the only way to get a federal credit "on your roof" in 2026. Some providers pass part of it on through a lower rate; nothing requires them to. Before you sign, weigh these points:
- Ownership: with a lease or PPA you do not own the panels, so you cannot claim any credit and the system can complicate a home sale (the buyer must take over the contract or you buy it out).
- Escalators: many contracts raise the monthly price 1-3% a year for 20-25 years. Ask for the total 25-year cost and compare it with a kit's all-in price.
- Batteries: leased batteries can still carry the company's credit, but backup rules (how much the provider reserves, whether you can go off-grid) are set by contract.
- Deadlines: solar under 48E has a begin-construction deadline of July 4, 2026, or in service by the end of 2027, so lease offers may tighten through 2027.
If you can pay upfront or finance the hardware, owning a DIY kit usually wins on lifetime cost. If you have no budget and no interest in a project, a lease can still make sense - just read the escalator clause.
Incentives that still work in 2026
The federal credit ended, but several programs were never tied to it. Check each one before you buy, because rules and funding change:
- State tax credits. Examples reported for 2026 include New York (25% up to $5,000), South Carolina (25% up to $3,500 a year with a long carryforward), Hawaii (35% up to $5,000), Arizona (25% up to $1,000) and Massachusetts (15% up to $1,000). Rules on self-installed systems and labor differ by state.
- Utility rebates and battery programs. Many utilities pay per kWh of storage or per kW enrolled in demand response. Note that a utility rebate is usually not taxable but reduces the cost basis for any credit.
- Net metering or net billing. How your utility credits exported power decides whether a battery pays off. Under low export rates (net billing), storing midday power and using it in the evening is worth more than sending it to the grid.
- Property and sales tax exemptions. Many states exempt solar from property tax reassessment and some from sales tax, which matters on a $10,000-$20,000 kit.
- Your 2025 carryforward. If you installed in 2025 or earlier and could not use the full credit, it carries forward on Form 5695.
- Store pricing. Sale events now do the job the credit used to do for many buyers. Our Black Friday solar deals hub lists the verified codes and dates for this season.
The best solar kits to buy without the tax credit
These picks give the lowest cost per watt or the best backup value for 2026, using only kits that are active and in stock today.
Sungold SGS12K-PM1-450 - 9 kW panels, 12 kW inverter, 16.07 kWh - $10,275
Twenty 450 W bifacial N-type panels (9 kW, roughly 925 kWh a month at 4.5 sun hours) cover the average US home, and the SGS-12K18MAX hybrid inverter delivers 12 kW at 120/240V with an 18 kW solar input, so you can grow the array later for an EV or heat pump. The 16.07 kWh PowerMax battery is outdoor-rated (IP65), the inverter has a 200 A pass-through, and the inverter and battery are certified together as a UL 9540 system, which simplifies permits. At $1.14 per watt of panels with storage included, it is the clearest answer to losing the 30% credit.
Sungold SGR-20K32P - 14.4 kW panels, 20 kW inverters, 32.14 kWh - $15,975
Thirty-two 450 W bifacial panels and two outdoor PowerMax batteries make this the largest array in our in-stock kits at the lowest price per watt: $1.11 including 32 kWh of storage. Two 10 kW inverters run in parallel for 20 kW at 120/240V, enough for central air, a well pump and a shop. It is an off-grid kit, so it suits homes without a utility connection or owners who want full independence; two PowerMax batteries at 150 A each supply about 14.5 kW from battery alone, with the full 20 kW available in sun or with more batteries.
Sungold SGH-11N3E with 28 x 450 W panels - 12.6 kW, 30.72 kWh - $16,757
For homes using 1,250-1,500 kWh a month, this grid-tie hybrid kit pairs 12.6 kW of panels with a split-phase inverter rated 10 kW continuous (11.4 kW peak), 15 kW of PV input and 30.72 kWh of LiFePO4 in an enclosed cabinet. The inverter is IP65 and UL 1741 SB with a 10-year warranty. Compared with an installed 12.6 kW system plus a battery at national averages (about $48,000), the kit plus a typical electrician budget saves well over $25,000 - more than the old 30% credit would have.
Sungold SGH-7.6N3E with 12 x 500 W panels - 6 kW, 15.36 kWh - $9,121
A home using 500-700 kWh a month, or an average home in the Southwest, can cover most of its bill with 6 kW. This kit pairs twelve 500 W panels with a 7.6 kW split-phase hybrid inverter (12 kW PV input, UL 1741 / CEC listed, 10-year warranty) and three 5.12 kWh rack batteries. Already have panels or a local panel deal? The version without panels is $6,319.99.
BigBattery ETHOS 20.48 kWh + EG4 18kPV - $9,433.99
If you installed panels in 2025 or earlier, a battery is the upgrade that still pays without a federal credit, especially under net billing. This system pairs 20.48 kWh of LiFePO4 (6,000 cycles, 12-year battery warranty) with the EG4 18kPV: 12 kW continuous from battery, up to 18 kW of solar input, a 200 A pass-through, and a UL 9540 listing that inspectors and utilities ask for. That is about $461 per kWh of storage including the inverter, versus about $15,650 for an average installed battery.
Anker SOLIX F3800 Plus + Home Power Panel - $3,199.99
Not ready for a full array? A portable station with a home panel gives essentials backup today and works with portable or ground-mount panels later. The F3800 Plus delivers 6,000 W at 120/240V from 3,840 Wh, takes up to 3,200 W of solar and expands with BP3800 batteries; the Home Power Panel lets an electrician wire chosen circuits for backup. The version with one BP3800 (7.68 kWh) is $5,298.99.
Sungold SGM-5K5E - 1.2 kW panels, 5 kW inverter, 5.12 kWh - $3,145
For a shed, workshop, tiny home or a first step, this is the lowest-cost complete 48V system we carry: six 200 W panels, one 5.12 kWh rack battery and a 5 kW inverter that accepts 5.5 kW of solar. You can add panels and batteries over time instead of replacing anything, which spreads the cost the way the credit used to soften it.
Which kit for which situation
| Your situation | Monthly use | Best fit | Kit price |
|---|---|---|---|
| Average grid-tied home, wants bill savings + backup | 800-1,000 kWh | SGS12K-PM1-450 | $10,275 |
| Efficient or sunny-state home | 500-700 kWh | SGH-7.6N3E | $9,121 |
| Large or all-electric home | 1,250-1,500 kWh | SGH-11N3E | $16,757 |
| Full-time off-grid home | 1,000-1,500 kWh | SGR-20K32P | $15,975 |
| Already has solar, wants storage | Any | ETHOS 20.48 kWh + 18kPV | $9,433.99 |
| Renter-style or no-roof backup | Essentials only | F3800 Plus + Home Power Panel | $3,199.99 |
| Cabin, shed or first system | Under 200 kWh | SGM-5K5E or SGK-5PRO | $3,145-$4,958 |
What buyers ask before buying solar without the tax credit
These are the questions that come up most in searches about solar costs and the end of the credit, and in Google's related-question results for the topic. Each answer uses our current prices.
"How much does an 8 kW or 10 kW solar system cost now?"
Installed at the 2026 average of $2.60 per watt, an 8 kW array is about $20,800 and a 10 kW array about $26,000, before any battery. With a battery the installed figure rises to roughly $36,000-$42,000. In kit form, 9 kW of panels with a 16 kWh battery is $10,275 (SGS12K), and 12.6 kW with 30.72 kWh is $16,757 (SGH-11N3E). See our 8kW solar systems and 10kW solar systems for every size we carry.
"Should I wait for the tax credit to come back?"
There is no scheduled return. Waiting costs you a year of electricity savings - about $1,900 for a 9 kW array at $0.17/kWh - while hardware prices can rise as well as fall. If budget is the issue, a starter kit you can expand is a better hedge than waiting.
"Can I install solar myself and still pass inspection?"
In most areas, yes: homeowners can pull their own permit for their own home, and many do the mounting and panel wiring themselves, then hire a licensed electrician for the service connection. Kits with UL-listed inverters (UL 1741) and certified storage (UL 9540) make plan review easier. Check your city's rules first - some require a licensed contractor for any grid-tied system.
"How much does a solar battery cost without the credit?"
Installed home batteries average around $15,650 in 2026. Bought as hardware, a 20.48 kWh battery with a 12 kW hybrid inverter is $9,433.99 (about $461 per kWh), and four 5.12 kWh Sungold SG48100P rack batteries (20.48 kWh) are $4,320 if you already have a compatible inverter. Our whole-home battery backup cost guide compares every option.
FAQ
Is there still a federal solar tax credit in 2026?
Not for homeowners who buy their own system. The 30% Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, and an expenditure counts as made when the installation is completed. Companies that own leased or PPA systems can still use the Section 48E credit within its deadlines.
Can I claim the solar tax credit if I signed my contract in 2025 but the system was installed in 2026?
Generally no. The credit is tied to the year the original installation is completed, not the contract or deposit date. A system finished in 2026 does not qualify. Ask a tax professional if your installation date is borderline.
Do solar batteries still qualify for a tax credit in 2026?
Not for homeowners under Section 25D - batteries of 3 kWh or more were included until the credit ended on December 31, 2025. Batteries owned by a solar company under a lease can still carry that company's 48E credit, and some states and utilities offer battery rebates.
Can I still use unused solar tax credit from 2025?
Yes. If your 2025 (or earlier) credit was larger than your tax bill, the unused amount carries forward to later years. Claim it on Form 5695 each year until it is used up.
How much does a solar system cost in 2026 without the tax credit?
EnergySage's 2026 average is about $2.60 per watt installed before incentives, so a 9 kW system is about $23,400, or about $39,000 with an average installed battery. A DIY kit with 9 kW of panels and a 16 kWh battery costs $10,275 at our store, or about $13,800 with a typical electrician and permit budget.
Is DIY solar worth it without the tax credit?
For most owners who can handle mounting and hire an electrician for the final connection, yes. Kits of 5 kW and up cost about $1.11-$1.52 per watt of panels with a battery included, versus $2.60 per watt installed without a battery, so DIY in 2026 often costs less than an installed system did with the 30% credit in 2025.
Is leasing solar better now that the tax credit ended?
It can be if you have no upfront budget, because the leasing company can still claim the 48E credit. But you do not own the system, many contracts add 1-3% yearly price escalators, and selling your home can be harder. Compare the 25-year lease cost with a kit's all-in price before you sign.
Ready to price your own system? Browse all off-grid solar kits, try the solar kit calculator, or see our ranking of the best off-grid solar kits.
Serhii Dovzhenko, Solar & Energy Storage Specialist at Eco Solar Kits · LinkedIn
Serhii is based in Vancouver, BC, and works on product data, system sizing and buyer guides for Eco Solar Kits. He attends solar and energy storage industry conferences and is involved in the community of electricians in Vancouver, BC. Credit for the data verification in this guide goes to Adsec.ca.