Home solar after the 30% federal tax credit

Here's what changed, what it does to the payback math, and which state rules still help.

The IRS says the 30% Residential Clean Energy Credit is not available for property placed in service after December 31, 2025. A home system installed in 2026 is paid for without it, so a quote or cost page that still subtracts 30% overstates your savings.

What ended

The credit covered 30% of the cost of qualified clean energy property for a home, including solar panels, installed from 2022 through December 31, 2025 (IRS: Residential Clean Energy Credit). State credits, property and sales tax rules, and utility export credits are separate and did not end with it.

How much it moves payback: Phoenix example

A 7 kW system at Phoenix's average quote of $2.28/W (EnergySage, updated 2026-09-04), with the same rates and the state credit in both columns:

Assumptions on the methodology page. Full numbers for 5, 7 and 10 kW on Solar companies in Phoenix.

What still applies in Arizona

• Credit for Solar Energy Devices (A.R.S. 43-1083): 25% of device cost, max $1,000 per residence, unused credit carried forward up to 5 years, no sunset in statute
• Property tax: A.R.S. 42-11054(C)(2): solar energy devices designed to produce solar energy primarily for on-site consumption are considered to add no value to the property.
• Sales tax: A.R.S. 42-5061(M): amounts received from sales of solar energy devices are deducted from the transaction privilege tax base; the retailer must be registered as a solar energy retailer.
• Exported power: Net billing. Utilities regulated by the Arizona Corporation Commission (APS, TEP) credit exports at the Resource Comparison Proxy (RCP) rate, locked for 10 years from interconnection; the rate for new customers can drop by no more than 10% per year. SRP is not ACC-regulated and sets its own export credit.

Checked 2026-09-13. Sources: 1, 2, 3. Cities: Phoenix, Tucson.

What still applies in California

• Property tax: Revenue and Taxation Code section 73 (BOE Letter to Assessors 2024/031): an active solar energy system is excluded from new-construction assessment if completed before 2027-01-01; the exclusion lasts until a change in ownership. Construction added in 2026 qualifies only if completed before 2027-01-01.
• Exported power: Net Billing Tariff for customers applying for interconnection since 2023-04-15: exports are credited at CPUC Avoided Cost Calculator values (usually lower than import rates), with the tariff locked for nine years. SDG&E customers are excluded from the export compensation adder.

Checked 2026-09-13. Sources: 1, 2. Cities: San Diego, Fresno.

What still applies in Texas

• Property tax: Tax Code Section 11.27: exemption of the appraised value added by a solar energy device primarily for production and distribution of energy for on-site use; apply to the county appraisal district with Form 50-123 between January 1 and April 30.
• Exported power: No statewide net metering rule; export compensation is set by each utility. CPS Energy is a municipal utility outside the competitive market.

Checked 2026-09-14. Sources: 1, 2, 3. Cities: San Antonio, Austin.

Red flags in a 2026 quote

• A "net price" that subtracts a 30% federal tax credit.
• Savings that value every exported kWh at the full retail rate. Arizona utilities credit exports at 3.45–5.55¢ against roughly 14–15¢ for power you buy.
• Offers that claim to be run or funded by the government, or that call the system no-cost.

Next steps

• Check your quote with your utility's current rates.
• How to check a solar quote — six numbers to verify.

Updated 2026-09-15.