The 30% federal solar tax credit expired at the end of 2025, leaving many homeowners wondering if going solar still makes financial sense. The good news: it does. California, Texas, Florida, and Illinois all have active programs including battery rebates, net metering credits, and property tax exemptions that can still save you thousands. Here's what's actually available, how each program works, and how to make the most of it in 2026.
If you've been putting off going solar because you thought the savings window had closed, you're not alone. A lot of homeowners in California, Texas, Florida, and Illinois are asking the same question right now: is solar still worth it without the federal tax credit?
The short answer is yes, and the programs still available can save you thousands. The landscape has shifted, but state programs, utility rebates, net metering credits, and battery incentives are still very much on the table. Here's a clear, state-by-state breakdown of everything that's real in 2026.
The Residential Clean Energy Credit, commonly known as the 30% federal solar tax credit, expired on December 31, 2025. If you installed and owned your system before that date, you could still claim it on your return. For new installations in 2026, that option is off the table for homeowners who purchase their systems outright.
This is a significant shift, and it's causing a lot of confusion. Some solar companies are still marketing the 30% credit as if it's available. It simply is not for homeowners who buy or finance their own system in 2026.
The good news is that the federal credit was never the only reason solar made financial sense. Utility bills are rising in every state US Power serves, and state programs have stepped up to fill the gap.
The incentives that remain, including battery rebates, net energy metering, property tax exemptions, and state-level programs, address the real pain point: your monthly electricity bill. And for most homeowners, those ongoing savings far outweigh a one-time tax credit over a 25-year system lifespan.
California replaced traditional net metering with Net Billing (NEM 3.0) in April 2023. Under the old system, you received close to the full retail rate for every kilowatt-hour you sent back to the grid, roughly $0.30 to $0.35/kWh. Under NEM 3.0, that average export credit dropped to around $0.08/kWh.
That change fundamentally shifted the math on solar in California. Exporting excess power is no longer very profitable. Storing it and using it yourself, especially during the 4pm to 9pm peak window when utility rates can hit $0.40 to $0.55/kWh, is now the strategy that maximizes your savings. Read more about are batteries worth it for solar in California right now.
This is why solar paired with battery storage is the standard recommendation for new California installations in 2026, not an optional add-on.
California's Self-Generation Incentive Program (SGIP) remains one of the most valuable battery storage incentives in the country, but access in 2026 is limited. Most general market budgets are closed or waitlisted as of early 2026. The program is now primarily available through the Residential Solar and Storage Equity (RSSE) category, which targets households at or below 80% of the Area Median Income (AMI) or those in disadvantaged or high-outage-risk communities.
For qualifying households in disadvantaged communities, SGIP's Equity Resiliency tier can offer up to $1.10 per Wh of battery storage, which can cover a significant portion of installation costs. If you think you may qualify, it's worth verifying your eligibility before signing any contract, since SGIP reservations must be made before installation.
California's Active Solar Energy System Exclusion is available for systems installed before January 1, 2027, meaning there's still time to benefit. Under this program, adding solar panels to your home does not trigger a property tax reassessment, so your tax bill won't go up even though your home value increases.
California also offers the Demand Side Grid Support (DSGS) program, which pays battery owners up to $350 per year for allowing their stored energy to support the grid during high-demand events.
Texas doesn't offer a statewide cash rebate for solar, and there's no state income tax credit. But the foundation for solar savings in the Lone Star State is still solid in 2026.
The most reliable benefit is the statewide property tax exemption under Texas Tax Code Section 11.27. When you add solar panels to your home, they can't be included in your property tax assessment. That means you get the full home value increase that solar provides without paying higher property taxes on it year after year. It's automatic, requires no application, and applies across the state.
Local utility programs are where Texas solar savings get more specific. Austin Energy offers a $2,500 rebate for customers who install a qualifying solar system and complete a solar education course. Oncor customers in the Dallas-Fort Worth area can access battery storage incentives for systems that include backup storage. Learn more about the best solar battery for Texas homes to maximize those rebates.
In the deregulated areas of Texas served by ERCOT, homeowners can shop for Retail Electric Providers (REPs) that offer solar buyback plans. Rates vary, but some REPs credit solar exports at $0.04 to $0.12 per kWh, so choosing the right plan after installation can meaningfully improve your long-term savings.
Because the federal residential tax credit is unavailable to homeowner-purchased systems in 2026, some Texas homeowners are looking at lease or Power Purchase Agreement (PPA) options. With these arrangements, a third-party company owns the system, claims any applicable commercial tax credits, and passes savings to you through lower monthly payments. This isn't the right fit for everyone, but it's a legitimate option worth discussing with a licensed consultant.
Florida homeowners have something that California lost in 2023: full retail net metering. Major investor-owned utilities including Florida Power and Light (FPL), Duke Energy Florida, Tampa Electric (TECO), and Florida Public Utilities credit solar exports at the full retail electricity rate, roughly $0.108/kWh for FPL customers.
This means that every kilowatt-hour your panels generate and send to the grid is credited at the same rate you'd pay to buy it back. For homeowners with well-sized systems, this can dramatically shrink or eliminate monthly electricity bills.
Florida offers two meaningful tax protections for solar homeowners. First, installing solar panels does not increase your home's assessed value for property tax purposes, so the added value is excluded from your tax assessment. Second, solar equipment is exempt from Florida's state sales tax, which directly reduces your upfront installation cost.
There are no statewide cash grants or rebates in Florida beyond these exemptions, but combined with strong net metering credits and the state's abundant sunshine, Florida remains one of the most financially attractive states for solar in 2026.
Illinois runs one of the most generous solar incentive programs in the country through Illinois Shines (the Adjustable Block Program). Under this program, homeowners receive a payment based on the Solar Renewable Energy Credits (SRECs) their system is projected to generate over 15 years, typically paid as a lump sum about a year after installation.
For a typical 8.5 kW system, that payment can range from approximately $11,000 to $12,000. The program is administered through Approved Vendors, so your installer needs to be program-certified. Block 6 pricing remains active in 2026, though rates decline as blocks fill, making sooner a better time than later.
If you're a ComEd or Ameren customer, you can receive an upfront rebate of $300 per kilowatt of solar installed and $300 per kilowatt-hour of battery storage. For a 5 kW solar system with a 10 kWh battery, that adds up to $4,500 in direct rebates. Systems must include a qualifying smart inverter to be eligible.
Like California and Texas, Illinois protects homeowners from higher property taxes after a solar installation. Under Illinois law, solar systems are assessed the same way conventional heating and cooling systems are, meaning they don't meaningfully increase your taxable property value.
For income-qualified households at or below 80% of the Area Median Income, Illinois Solar for All (ILSFA) can make solar accessible with no upfront cost and guaranteed bill savings. For eligible Chicago-area residents, a single-person household qualifies with income under approximately $65,000.
Incentive programs reduce your upfront cost, but the quality of your installation determines your savings for the next 25 years. US Power is California's exclusive QCells partner, meaning American-made panels come at factory-direct pricing that typically runs 15 to 20% below what you'd pay through other installers. Explore what goes into a full residential solar installation with US Power.
Every system comes backed by a 25-year comprehensive warranty that covers your panels, workmanship, and performance. That's not three separate warranties. It's one unified guarantee.
Navigating programs like SGIP, Illinois Shines, and utility rebate applications can be genuinely complicated. Deadlines, funding limits, income qualification requirements, and pre-installation reservation rules all vary by program and utility. Knowing how to avoid overpriced solar quotes is the first step toward protecting your investment.
US Power's CSLB-licensed consultants do this work alongside you, at no cost during your free consultation. They identify which programs you qualify for, handle the paperwork, and build your system around your bill history and energy goals. There are no hidden fees, and appointments are available virtually or on-site.
The most important thing to understand about 2026 solar incentives is that they're not one-size-fits-all. Your savings depend on which utility serves you, your income level, whether you add battery storage, and the programs currently active in your area.
In California, a homeowner who qualifies for SGIP's Equity Resiliency tier and pairs it with the DSGS battery enrollment program can offset a significant portion of their system cost. In Illinois, stacking Illinois Shines payments with ComEd's distributed generation rebate and a property tax exemption can bring payback down to just a few years. Review all available solar financing options to find what fits your budget and goals.
Knowing which incentives apply to your specific situation, and applying in the right order, is where a knowledgeable installer makes the biggest difference.
Solar incentive programs change based on funding availability and policy updates. California's property tax exclusion for solar expires for new installations after January 1, 2027. Illinois Shines block pricing declines as blocks fill. SGIP reservations operate on a waitlist.
Waiting doesn't improve your options. It narrows them. And meanwhile, utility rates continue rising across all four states. Understanding the hidden costs that can impact your solar savings is essential before you sign anything.
The incentive landscape has changed in 2026, but solar savings are still very real. The key is knowing exactly which programs apply to your home, your utility, and your financial situation, and acting before funding runs out or deadlines pass.
US Power makes that process simple. With transparent pricing, no hidden fees, and 200+ five-star reviews from homeowners across California, Texas, Florida, and Illinois, US Power is built for exactly this moment. Explore the full range of solar battery storage benefits and see how the right system protects you for the next 25 years.
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