Updated April 2026
Solar Panel Grants & Incentives in United States (2026)
Federal ITC expired — state incentives remain
There are currently 5 active solar incentives available in United States. State credits, SREC sales, and net metering remain; no federal residential credit in 2026.
Active Incentives
USDA Rural Energy for America Program (REAP)
Value
Grants up to 50% of project cost (max $1M); loans up to 75%
Federal grants and loans for agricultural producers and rural small businesses to install solar. Up to 50% of project costs, up to $1 million in grants.
Eligibility criteria
- Agricultural producers (farmers, ranchers) in eligible rural areas
- Rural small businesses with 50 or fewer full-time employees
- Property located in a USDA-defined rural area
- Note: programme is not open for applications 1 July – 30 September each year
How to apply
Apply through your local USDA Rural Development state office. Applications are accepted on a rolling basis outside the July–September blackout period. You'll need energy assessments and project cost documentation.
Things to know
REAP grants are competitive and subject to available IRA funding. Agricultural/rural users can still achieve significant cost reductions. REAP grants do not stack with the now-expired residential ITC (Section 25D), but may still interact with commercial credits for eligible entities.
Last verified: 6 April 2026
New York NY-Sun Initiative (Low-Income)
Value
$0.80/W (low-income only), up to $20,000 + NY state 25% tax credit (up to $5,000)
NY-Sun standard-income blocks are now fully subscribed. The programme continues for low-income households at $0.80/W, capped at $20,000. New York State 25% income tax credit (up to $5,000) remains active for all residents.
Eligibility criteria
- New York State property owners
- Low-income households qualify for the remaining NY-Sun funding
- All NY residents qualify for the 25% NY state income tax credit (up to $5,000)
- Must use a NY-Sun participating installer
How to apply
Work with a NY-Sun participating installer. Claim the NY state tax credit on your state tax return (Form IT-255).
Things to know
Standard-income NY-Sun rebate blocks are fully subscribed as of 2026. Low-income households can still access $0.80/W (capped $20K). The NY state income tax credit of 25% (up to $5,000) remains available to all New York residents regardless of income.
Last verified: 6 April 2026
Massachusetts SMART 3.0 Program
Value
$0.03/kWh generated (residential); $0.06/kWh (low-income) — paid for 10 years
Massachusetts performance-based incentive, restructured in January 2026 to flat rates: $0.03/kWh for standard residential and $0.06/kWh for low-income households. 600 MWAC available in 2026.
Eligibility criteria
- Massachusetts residential property connected to Eversource, National Grid, or Unitil
- Residential systems up to 25 kW
- Must be installed by a SMART-eligible installer
- Low-income rate for qualifying income levels
How to apply
Apply through your utility before installation. Your installer should guide you through the SMART application process.
Things to know
SMART 3.0 launched January 2026 with restructured flat rates replacing the previous block-based declining rates. An 8 kW system generating 10,000 kWh/year earns $300/year at the standard rate — modest, but paid for 10 years. Massachusetts also has a personal income tax credit of 15% (up to $1,000).
Last verified: 6 April 2026
New Jersey SREC-II Program
Value
$85/MWh (= $0.085/kWh) through May 2026; rate under review
New Jersey Solar Renewable Energy Certificates (SREC-II) pay solar owners for each MWh of electricity generated. Current rate: $85/MWh through Energy Year ending May 2026, with a rate review due.
Eligibility criteria
- New Jersey residential solar system owners
- System must be registered with the NJCEP (New Jersey Clean Energy Program)
- Must generate and track SRECs through the GATS system
How to apply
Register your solar system with the New Jersey Clean Energy Program and enroll in SREC tracking. SRECs are sold quarterly.
Things to know
NJ also provides a sales tax exemption (no sales tax on solar equipment), a property tax exemption (solar system value not added to assessed property value), and net metering.
Last verified: 6 April 2026
Net Metering / Export Credits (varies by state)
Value
Retail rate credits in most states; ~$0.08/kWh in California (NEM 3.0)
Most US states still offer net metering or export credits, though policies vary widely. California's NEM 3.0 significantly reduced export rates; most other states retain full or near-full retail rate credits.
Eligibility criteria
- Available in most (but not all) US states
- Must have a grid-connected solar system
- California moved to NEM 3.0 in 2023, dramatically reducing export credits
- Requirements and rates vary by state and utility
How to apply
Net metering is typically applied automatically when your solar system is connected. Check dsireusa.org for your state's specific policy.
Things to know
Without the federal ITC, net metering is now the primary financial mechanism for most residential US solar owners. California NEM 3.0 (~$0.08/kWh) makes battery storage essential to maintain financial viability in CA. Most other states remain at full retail rate.
Last verified: 6 April 2026
Closed Schemes
Federal Solar Investment Tax Credit (ITC) — EXPIRED
The 30% residential federal solar tax credit (Section 25D) expired on 31 December 2025, eliminated by the One Big Beautiful Bill Act (Public Law 119-21, signed 4 July 2025).
The One Big Beautiful Bill Act (signed 4 July 2025) ended the Section 25D residential ITC with no phase-out period. Homeowners installing solar in 2026 receive no federal tax credit. Third-party-owned systems (leases/PPAs) may still access the commercial 48E ITC through 2027. State-level incentives remain available.
Frequently Asked Questions
Is there still a federal solar tax credit in 2026?
No. The 30% federal Investment Tax Credit (Section 25D) for residential solar expired on 31 December 2025. It was eliminated by the One Big Beautiful Bill Act signed on 4 July 2025. Homeowners installing solar in 2026 receive no federal tax credit. State-level incentives remain available and vary significantly.
What solar incentives are still available in the US in 2026?
Despite the federal ITC expiring, several state incentives remain: New York's 25% state tax credit (up to $5,000); Massachusetts SMART 3.0 performance payments; New Jersey SREC-II certificates; state net metering in most states; USDA REAP grants for rural/agricultural users; and various state-specific rebates. Check dsireusa.org for your state.
Do third-party-owned solar systems (leases/PPAs) still get a tax credit?
Potentially yes — third-party-owned systems may still access the commercial 48E investment tax credit through 2027. This is why some solar companies are pivoting to lease/PPA models. If you lease solar panels, the installer (not you) receives the tax credit, which may be reflected in lower lease rates.
Is solar still worth it in the US without the federal tax credit?
It depends on your state. In states with strong incentives (NY, MA, NJ) and high electricity prices, solar remains financially attractive. In states with low electricity prices or poor net metering, the economics are more challenging without the 30% ITC. Use our payback calculator to see updated numbers for your situation.
Calculate your cost after grants
Use our calculators to estimate your installation cost, then apply the grants above to see your real net cost and payback period.
Related Solar Terms
Disclaimer: Grant information is provided for guidance only. Eligibility criteria, amounts, and availability change frequently. Always verify current details at the official scheme pages before making financial decisions. Solar Estimator is not responsible for changes to grant schemes after the last verified date shown above.