Short answer: for homeowners, no. The federal residential solar tax credit — Section 25D, the one everyone knew as “the 30% credit” — ended for systems placed in service after 31 December 2025. If you are installing solar on your home in 2026, there is no federal credit to claim.
The commercial credit is a different story, and it is still running on its own timeline. Below is what changed, what is left in Oregon and Washington, and why so much of what you will read elsewhere is out of date. As always with tax matters, confirm the specifics with your own tax professional — this is the shape of the rules, not advice for your return.
Is the federal solar tax credit still available in 2026?
Not for residential systems. Section 25D was terminated for systems placed in service after 31 December 2025, so a home installation finished in 2026 does not qualify. This was a change in the law, not a phase-down or a reduced percentage — the residential credit simply ended.
If your system was placed in service on or before 31 December 2025, the rules that applied then are the ones that matter for that tax year. Your accountant can confirm how it lands on your return.
What is the difference between Section 25D and Section 48E?
They are two separate credits that people constantly confuse, and the distinction is now the whole story.
- Section 25D was the residential credit — a homeowner installing solar on the house they live in. This is the one that ended.
- Section 48E is the commercial credit — businesses, farms and income-producing property. This one survived, with its own deadlines.
Almost every out-of-date article you will find blurs the two together, which is how a business owner ends up thinking they missed something and a homeowner ends up expecting money that is not coming.
Why is so much online advice about the 30% credit still wrong?
Because the internet did not update. Search “how to claim the 30% solar tax credit” and you will still find pages written before the change, calculators that bake the credit into their payback maths, and sales quotes that show a federal credit line item.
That last one matters most. If a solar quote you are holding right now includes a federal residential credit, the numbers on it are wrong — not slightly optimistic, wrong. Ask the company to requote without it and see what the project actually costs.
Can businesses still claim a solar tax credit?
Yes, under Section 48E — but the timing rules tightened on 4 July 2026, and which side of that date your project falls on decides your deadline.
- Projects that began construction on or before 4 July 2026 keep a long runway to finish and claim.
- Projects that did not must be placed in service by 31 December 2027.
- Standalone battery storage is not on this deadline — it runs to a later phase-out, which is a point most commercial owners have not heard.
“Placed in service” means complete, inspected, interconnected and operating — not ordered, not permitted, not installed and waiting for the utility. Working backwards from the end of 2027 through design, procurement, interconnection and inspection, that is a 2026 decision rather than a 2027 one. Our commercial MACRS guide covers the depreciation side, which is the other half of the arithmetic.
What solar incentives are left in Oregon and Washington?
More than people assume, and they matter more now that the federal layer is gone. The catch is that they depend on who supplies your power rather than which city you live in.
Washington
Washington exempts qualifying solar equipment from state and local sales tax, which comes off the price at purchase rather than at tax time. Net metering credits what your system exports. Full detail on our Washington solar incentives page.
Oregon
Energy Trust of Oregon incentives are funded by Portland General Electric and Pacific Power ratepayers and are available only to their customers — if you are served by a municipal utility, a PUD or a co-op, they do not apply to your address. State rebate programs run separately and open and close with funding cycles. See Oregon solar incentives for what is current.
This is why we confirm your utility before quoting anything. Two houses fifteen minutes apart can have entirely different incentive pictures, and no national sales operation working from a call centre will catch that.
Is a home battery still worth it without the federal credit?
For most households the case never rested on the credit. It rests on what an outage costs you — and in this region that means Gorge windstorms, winter ice and, increasingly, planned shutoffs during fire season.
What the change does affect is sizing. Without a federal credit softening the price, the sensible design is a critical-loads battery — refrigeration, heat, water, connectivity and a few outlets — rather than whole-home backup. That is a shorter list than most people first ask for, and it is usually the difference between a battery that pays for itself in peace of mind and one that does not.
So does solar still make sense in 2026?
For most homes with a reasonably unshaded roof, yes — but the arithmetic is different and anyone telling you otherwise is selling something. The return now comes from the power you stop buying, plus whatever state or utility incentives apply to your address.
That makes two things matter more than they did: how much electricity you actually use, and how well the array is designed for your specific roof. A system sized against a real year of usage on a well-modelled roof still pays. A generously oversized system sold on a stale credit does not.
Sunbridge Solar has been installing across SW Washington and NW Oregon for over 15 years. We are verified by the Energy Trust of Oregon, our work carries a 10-year craftsmanship warranty and 25-year product warranties, and we quote from twelve months of your own usage rather than a national average. If the honest answer for your roof is no, we will tell you that too.
Frequently Asked Questions
Is the federal solar tax credit still available in 2026?
Not for residential systems. Section 25D ended for systems placed in service after 31 December 2025. The commercial credit under Section 48E continues on its own timeline, so the answer depends on whether your project is a home or a business.
What replaced the 30% residential solar tax credit?
Nothing at federal level for homeowners. What remains are state and utility incentives — Washington’s sales-tax exemption and net metering, and in Oregon, programs that depend on which utility serves your address.
Can businesses still claim a solar tax credit?
Yes, under Section 48E. Projects that began construction on or before 4 July 2026 keep a long runway; those that did not must be placed in service by 31 December 2027. Standalone battery storage is not on that deadline. Confirm your project’s pathway with your accountant.
I installed solar in 2025. Do I still qualify?
If the system was placed in service on or before 31 December 2025, the rules in force then are what apply to that tax year. Keep your permit, inspection and interconnection records, and let your accountant handle the filing.
Does solar still pay for itself without the federal credit?
For most homes with an unshaded roof, yes — the return now comes from the power you stop buying plus state and utility incentives. It does mean sizing against real usage matters more, because there is no credit softening an oversized system.
My solar quote shows a federal tax credit. What should I do?
Ask for it to be requoted without that line. A residential quote in 2026 that includes a federal credit is not slightly optimistic, it is wrong, and the rest of the numbers deserve a second look too.
Want the honest math for your roof?
Call 360-313-7190 for a free, no-pressure consultation, or request a quote. Sunbridge Solar serves Camas, Washougal, Vancouver, Portland and the Columbia River Gorge.
