The 30% photo voltaic credit score is useless — lengthy stay the 30% photo voltaic credit score!

The Trump Administration’s choice to repeal of the 30% residence photo voltaic tax credit score in 2025 appeared like the top of the highway for sponsored rooftop photo voltaic tasks, but it surely appears to be like like the house photo voltaic tax credit score continues to be alive — you simply should know the place to search for it, and declare it.

The 30% federal tax credit score for owners including rooftop photo voltaic (Part 25D) very publicly expired on December thirty first, 2025 — however that doesn’t imply you’ll be able to’t nonetheless get 30% off your photo voltaic set up. That’s as a result of Part 25D (the one which the Trump Administration killed) solely utilized to taxpayers with an possession curiosity of their PV methods (some financed methods or methods that have been bought outright), however there’s nonetheless another choice: leasing.

That’s proper, gang. Simply as we’ve seen with electrical automobile tax credit over time, the foundations for leases are a bit of bit totally different than these for purchases. What meaning right here is that, underneath Part 48E of the Federal tax code, certified photo voltaic firms that personal a PV system can proceed to say a credit score of as much as 30% on these via the top of 2027, and in the event you’re leasing your system or getting into right into a power-purchase settlement (PPA) with a photo voltaic installer, the corporate can cross some or all of that incentive on to you.

Does that imply decrease month-to-month cost? Decrease, and even eradicated up-front prices? That’s in the end between you and the corporate you determine to maneuver ahead with. The important thing takeaway, nevertheless, is that the 30% photo voltaic incentive isn’t useless useless.

Commercial – scroll for extra content material

As Miracle Max stated, “It’s simply principally useless.”

Extra about Part 48E

On the heart of the post-2025 photo voltaic tax credit score is US Code § 48E, usually referred to as the Clear Electrical energy Funding Credit score. Not like the now-expired residential credit score (the previously-mentioned Part 25D), which was claimed instantly by owners, Part 48E is a industrial funding tax credit score designed to incentivize companies that personal “clear vitality gear,” which at present consists of each photo voltaic panels and battery vitality storage methods (together with pure fuel gas cellsamongst different issues).

Underneath this provision, an organization that owns a photo voltaic set up can declare a tax credit score price as much as 30% of its certified funding within the challenge then enter right into a third-party possession mannequin (lease or PPA) with the house owner.

There are, in fact, some caveats. The challenge should start development earlier than July 4, 2026, and be positioned in service by December 31, 2027. The corporate can then determine how (or, I assume, if) they need to issue that tax profit into their pricing for owners.

Electrek’s Take Disclaimer

Tax regulation is a messy, difficult, and high-stakes subject. Federal tax credit, state legal guidelines, utility packagesand the high-quality print within the contracts from firm to firm can overlap and even contradict one another — and navigating any a part of it isn’t particularly intuitive. That complexity is strictly why the sensible individuals you recognize rent accountants and tax professionals to make incentives work for them, and it is best to do the identical.

For those who’re contemplating a lease or PPA, a dialog with a certified skilled installer can assist you perceive what’s being supplied and the way a given deal is being structured. Take that data to your accountant to know what’s actual, what’s advertising and marketing, and what truly is smart for you — and if there’s cash on the desk, ensure you don’t depart it there.

Except, you recognize, you don’t truly care about cash.

Authentic content material from Electrek.

For those who’re contemplating going photo voltaic, it’s at all times a good suggestion to get quotes from a couple of installers. To ensure you discover a trusted, dependable photo voltaic installer close to you that provides aggressive pricing, try EnergySagea free service that makes it straightforward so that you can go photo voltaic. It has tons of of pre-vetted photo voltaic installers competing for your online business, making certain you get high-quality options and save 20-30% in comparison with going it alone. Plus, it’s free to make use of, and also you gained’t get gross sales calls till you choose an installer and share your cellphone quantity with them.

Your personalised photo voltaic quotes are straightforward to match on-line and also you’ll get entry to unbiased Vitality Advisors that will help you each step of the way in which. Get began right here.