The short version:

• The 30% federal solar tax credit ended on January 1, 2026. If you buy a system this year with cash or a loan, you get $0 back.

• The only way to still get 30% is a lease or a PPA. But then the solar company keeps the credit, not you.

• Here is the part most people miss. If a salesperson sold you on that credit, you may have a problem right now. Even if your panels are already on the roof.

What just changed

For years, solar came with a big federal tax credit. You bought a system. You got 30% of the cost back at tax time. That was the deal.

That deal is over.

A new law signed in July 2025 ended the credit for homeowners who buy their own system. The rule is called Section 25D. It dropped to zero on January 1, 2026. There was no slow phase-out. One day it was 30%. The next day it was nothing.

So here is where things stand in 2026. Buy solar with cash this year, you get $0 from the government. Buy it with a loan, same thing. $0.

One path to a 30% credit is left. It is a lease or a PPA (a power purchase agreement). But read this part closely. In a lease or a PPA, you do not own the system. The solar company owns it. So the solar company keeps the 30% credit. Not you.

That matters. Because a salesperson can still knock on your door in 2026 and say "there's a 30% tax credit." That can be true. But it may mean a lease where you own nothing and pay for 25 years.

Sal says: If a rep mentions a "30% credit" in 2026, ask one question. "Do I own the system, or do you?" Because if they own it, the credit is theirs, not yours.

Why this matters even if you already have solar

You might think this does not apply to you. Your panels are already up. The credit is the next person's problem.

It may not be.

A lot of homeowners were sold on that tax credit. It was the number that made the whole deal sound good. And for many people, that number was wrong.

Here are the two traps we see most.

Trap one: the credit you could not use

The solar tax credit was nonrefundable. That is a tax word, so here is what it means in plain terms. You could only use the credit if you owed federal taxes that year. The credit lowered your tax bill. It did not come to you as a check.

Now think about who buys a lot of solar. Retirees. People on fixed incomes. People who already owe little or nothing in federal taxes.

If that is you, the credit your rep promised may have been worth a small part of what they said. For some people, it was worth nothing at all. The savings on paper were never going to reach your bank account.

Most reps never checked. They quoted the full 30% to everyone. Because it helped close the sale.

Trap two: the loan built around a credit you had to pay back in

This one is bigger. And it is hidden inside the loan.

Many solar loans are built in a way that hides the real cost. They quote you a low monthly payment. That low payment only works if you take your tax credit and pay it straight back into the loan. Usually around month 18.

If you did that, fine. But if you did not get the full credit, or could not use it, or just did not know you were supposed to pay it in, the loan changes. The payment goes up. Sometimes by a lot.

A homeowner who was promised "around $130 a month" can open a statement and find $180 or more. The math was never built for real life. It was built for the sale.

There is often a hidden dealer fee inside that loan too. It can be thousands of dollars added to the amount you financed. You were never shown it clearly. Under federal lending law, that can be a real violation.

Sal says: Pull your loan agreement today. Because the payment-jump terms are usually on page 10 or later, and most homeowners never read past the monthly number on page one.

How to tell if this happened to you

You do not need to be an expert. You just need to check a few things.

• Pull out your solar loan agreement. The whole thing, not the one-page summary.

• Look for a payment that goes up after a set time. Often around 18 months.

• Did your monthly payment already jump? That is a sign the credit was built into the deal.

• Were you told to "expect a tax refund" that would cover part of the cost?

• Look for a "dealer fee," or a gap between the system price and the amount you financed.

If any of these sound familiar, you are not alone. And it is worth a closer look.

What you can do now

Here is the good news. You have options, even now. Even if the panels are already up. Even if the company that sold them is gone.

The first step is simple. Find out exactly what you signed, and whether it holds up.

That is what the Free Solar Relief Assessment is for. It is free. It takes a few minutes. You tell us what happened, and we help you see if your agreement has a problem worth fixing.

Because the time to find out something is wrong is before you need someone to fix it.

Take your free Solar Relief Assessment →