Incentives

The federal solar tax credit: what it was, what is left

The federal homeowner solar credit ended Dec 31, 2025. Here is how it worked and what to check on your project now.

Three Energy Solutions crew members holding a solar panel

Federal Solar Tax Credit for Residential Projects

The federal homeowner solar credit, officially the Residential Clean Energy Credit (25D), covered a share of residential solar projects and has ended. The Inflation Reduction Act raised the credit before Congress ended it.

Homeowners could claim a share of the cost of solar and battery systems on their federal taxes. The homeowner credit ended Dec 31, 2025.

Update, Oct 2026: the federal residential solar credit (25D) ended Dec 31, 2025. Business credits may still apply - ask us.

What Was the Federal Solar Tax Credit?

The credit covered a share of the total cost of a system, including:

  • Solar panels
  • Battery storage systems
  • Installation labor and permitting fees
  • Necessary electrical upgrades

It applied whether you were in Oregon City, Portland, Salem, Beaverton, or anywhere else in the region.

What Changed With the Federal Solar Tax Credit

The federal homeowner solar credit changed when Congress reviewed clean energy incentives as part of a broader budget process. The homeowner credit ended Dec 31, 2025 instead of running on the earlier schedule.

If you were counting on the federal credit, ask us how your project looks without it.

What Happens Next

What happens next: the homeowner credit has ended, and other incentives may still apply.

Here is where that leaves homeowners:

  1. Homeowner credit: It has ended.
  2. Business credits: They may still apply to commercial systems. Check with your tax advisor, and ask us.
  3. State and utility programs: Energy Trust of Oregon and state programs may still help. Amounts and eligibility change often - we check the current numbers for your home.

Oregon Solar Incentives Are Still Worth Checking

Beyond the federal credit, homeowners in Oregon may have access to:

  • Energy Trust of Oregon cash incentives
  • Solar Within Reach rebates for income-qualified households
  • Net metering policies that let you earn credit for excess power you send to the grid

Amounts and eligibility change often - we check the current numbers for your home. We help homeowners from Oregon City to Tigard, West Linn, and beyond navigate all of these options.

Why Local Matters: Solar with a Homegrown Team

We're not a national chain - we're a local solar installer serving the Portland metro, the Willamette Valley, and SW Washington, and we're a licensed Oregon electrical contractor (CCB 202002), in business since 2013. Every system we design, install, and service is handled in-house by our experienced team. From the first proposal to the final inspection, we've got you covered.

Take the Next Step

To take the next step, call us or request a site visit. We check every incentive that still applies to your project.

Get Your Free Solar Proposal - Start Here

Email: [email protected]

Phone: (971) 526-5545

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