{"id":89,"count":22,"description":"For 20 years, homeowners could directly claim a federal tax credit for buying and installing solar panels on their property. That era ended when the \"One Big Beautiful Bill\" terminated the Section 25D Residential Clean Energy Credit for systems installed after December 31, 2025.\r\n\r\nFortunately, homeowners can still benefit from the lesser-known Section 48E federal tax credit through the end of 2027.<\/strong> This tax credit is claimed by businesses that operate Third-Party Ownership (TPO) solar arrangements, such as leases, Power Purchase Agreements, and prepaid solar products.\r\n\r\nIn this article, we'll explore the differences between the two types of federal solar tax credits, and how to benefit from the 48E credit when you go solar in 2026.\r\n

What is the Federal Solar Tax Credit?<\/b><\/h2>\r\nThe federal solar tax credit can refer to incentives available to homeowners: The consumer-claimed 25D credit (now expired) and the business-claimed 48E credit (available through the end of 2027).\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
<\/td>\r\nSection 25D<\/td>\r\nSection 48E<\/td>\r\n<\/tr>\r\n
Claimed by<\/td>\r\nHomeowners<\/td>\r\nBusinesses<\/td>\r\n<\/tr>\r\n
Available for<\/td>\r\nSystems purchased with cash or loan<\/td>\r\nThird-Party Owned solar arrangements<\/td>\r\n<\/tr>\r\n
Eligibility timeline<\/td>\r\nSystems installed before January 1, 2026<\/td>\r\nSystems installed before January 1, 2028<\/td>\r\n<\/tr>\r\n
Value<\/td>\r\n30% of eligible project costs<\/td>\r\n30% of eligible project costs, with project-specific adders<\/td>\r\n<\/tr>\r\n
How homeowners receive value<\/td>\r\nReduction in federal tax liability for year system was installed<\/td>\r\nReduction in payments or upfront cost of a Third-Party Owned solar system<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n

25D Residential Clean Energy Credit<\/h3>\r\nThe Residential Clean Energy Credit was a tax credit worth 30% of the gross cost of a solar project (parts, labor -- the whole chalupa) with no maximum incentive amount.\r\n\r\nSo if your all-in solar cost was $25,000, your federal solar tax credit would be worth $7,500. If you spend $75,000 on solar and battery, your tax credit would be worth $22,500.\r\n\r\nThe only requirements to use this incentive are:\r\n
    \r\n \t
  1. You own the system<\/b> by going solar via cash or a solar loan<\/li>\r\n \t
  2. You have income tax liability<\/b>, which is what this incentive reduces<\/li>\r\n<\/ol>\r\n

    48E Clean Electricity Investment Credit<\/h3>\r\nThe Clean Electricity Investment Credit is the same credit that applies to utility and commercial-scale solar installations. It also applies to residential solar installations\u00a0owned and operated by a business \u2014\u00a0<\/em>also known as Third-Party Ownership.\r\n\r\nThese arrangements fall into three buckets:\r\n