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    Tax Optimization

    Residential Clean Energy Credit

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    intermediate · $100K - $250K

    The One Big Beautiful Bill Act (OBBBA) ended the Residential Clean Energy Credit (Section 25D) for property placed in service after December 31, 2025, so it is not available for 2026.

    Historically it was a 30% federal credit on solar panels, wind turbines, geothermal heat pumps, and battery storage, with no annual cap and a carryforward for unused amounts.

    Property placed in service on or before December 31, 2025 could still qualify.

    Annual Limit

    Not available for 2026 (Section 25D ended after Dec 31, 2025)

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    Key takeaways

    • The Residential Clean Energy Credit (Section 25D) does not apply to property placed in service after December 31, 2025, so it is not available for 2026.
    • Historically it was a 30% federal credit on solar, wind, geothermal, and battery storage, with no annual cap.
    • Property placed in service on or before December 31, 2025 could still qualify.
    • Unused credit from a qualifying year carries forward to future years.

    Requirements

    • Installed at your primary or secondary residence
    • New (not used) qualifying equipment
    • System meets efficiency requirements

    How to Implement

    1. 1Get quotes from qualified installers
    2. 2Verify equipment qualifies for credit
    3. 3Install solar, wind, geothermal, or battery storage
    4. 4Claim 30% credit on Form 5695

    The bottom line

    The 30% residential clean energy credit is no longer available for property placed in service in 2026 or later. Only property placed in service on or before December 31, 2025 could qualify.

    Frequently Asked Questions

    Educational Only: This information is for educational purposes. Consult a qualified financial advisor or tax professional before implementing.
    Last reviewed: April 2026

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    Sources

    1. Internal Revenue Service, Rev. Proc. 2025-32

      2026 inflation-adjusted amounts (tax brackets, standard deduction, estate & gift, FSA, credits)

    2. Internal Revenue Service, Notice 2025-67

      2026 retirement plan limits (401(k), IRA, SIMPLE, catch-up)

    3. Internal Revenue Service, Rev. Proc. 2025-19

      2026 HSA and HDHP inflation-adjusted limits

    Educational information only. Not financial, tax, or legal advice or a recommendation. Figures are drawn from the primary sources cited above; verify current amounts with the source before acting.

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