Selling residential solar in 2026, after the homeowner tax credit ended

What changed for homeowners who buy

The federal Residential Clean Energy Credit, section 25D of the tax code, does not apply to expenditures made after December 31, 2025. That change came from Public Law 119-21, signed on July 4, 2025.

Timing matters more than most homeowners expect. The IRS treats an expenditure as made when the installation is completed, so a system finished in 2026 does not qualify even if the homeowner paid for it in 2025. If a homeowner tells you a past salesperson promised them the credit for a 2026 install, that is worth taking seriously.

What still applies when a company owns the system

Leases and power purchase agreements work differently, because a company owns the system and the homeowner pays for the equipment's use or its power. The business credit in section 48E can still apply to the owner of a qualifying system. The credit belongs to the owner, not to the homeowner.

The 2025 law also set deadlines. A solar facility that began construction after July 4, 2026 has to be placed in service by December 31, 2027 to qualify for 48E. The law bars 48E for solar water heating and small wind property leased to a third party, but rooftop solar electric systems are not in that bar. Whether any particular lease or power purchase agreement qualifies is a question for the company that owns it.

Why the old pitch is now a liability

Regulators were already watching tax credit claims before the credit ended. In its August 2024 Solar Financing Market Issue Spotlight, the Consumer Financial Protection Bureau named misleading statements about the federal tax credit, including net cost presentations, as one of the risks in solar lending, alongside hidden fees, misrepresented prepayments and overstated savings.

In 2023 the United States and the State of Arizona sued a solar seller and its telemarketer, alleging unsupported claims of 20 to 50 percent bill savings and that the solar payment would replace the utility bill. Those were allegations, but they show what gets attention: promises the homeowner cannot verify.

How to talk about money now

Lead with the homeowner's actual bill and usage, and show what the system is expected to produce on their roof. Present the payment options the company really offers and the total cost of each, including any fees in the financing.

When a homeowner asks about tax credits, say plainly that the homeowner credit for purchased systems ended for installs completed after 2025, and that they should ask a tax professional about their own situation. That answer costs you nothing and protects the deal.

• Never present a credit, rebate or incentive as guaranteed
• Never describe a payment as replacing the electric bill unless the numbers on that home support it
• Show the total cost of financing, not only the monthly payment
• Write down what you told the homeowner, so the install team keeps the same promises

Questions homeowners are asking in 2026

Expect more homeowners to ask whether solar still makes sense without the credit, whether a lease or power purchase agreement is better, and what happens to the system if they sell the house. Know your company's answers before you sit down, and say so when a question needs someone else, such as a tax professional or the finance company.

Where APHS fits

APHS sells residential solar and manages every install through its install partners, so closers can focus on the appointment. Appointments come to closers from our setting floor and partners, and closers learn the APHS script with the team.

We are adding closers in Michigan and Missouri. Strong in home closers who are new to solar are welcome. Compensation is covered on the call, and you can apply and pick a time in about two minutes.

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