In 2026, as the new year dawns and we look towards a new year in solar, some things will change while others remain the same. Any time there is a sizable shakeup in an industry, it is natural to take stock of where we are now, and to look towards the future in order to assess how things will be. The ending of the solar tax credit has been a major news story throughout the year, and will likely continue to be right up until the deadline arrives, but one question that we’ve seen over and over is this: what will happen to solar after the tax credit ends?
We’ve also seen versions of that question that lean closer to doom and gloom, but that tends to come from people outside the industry. Those of us who live and breathe solar may have a different perspective on the future of solar, so we thought it would be helpful to share some insight into what’s next for our industry, and give you a peek into what solar will look like in 2026.
When we look to the future of solar, it’s important to keep in mind the three pillars of solar value, and how they may be impacted by any changes in the present. For a homeowner who has just installed solar on their home or property, the three value proposition pillars are Energy Savings, Property Value, and Solar Incentives. The energy savings pillar naturally relates to the ability of the homeowner to save on their monthly energy bill, and in 2026 that will remain largely unchanged. In fact, given that rates have risen so high and held at that peak, you may see even more value on this front as power needs continue to grow and energy costs show no sign of decreasing.
For the second pillar, solar installations increase the property value of a home by a conservative estimate of four to six thousand dollars per kW of energy generation. This number will only increase as solar moves from a recommendation to a necessity. Currently, all new construction is required to have a solar installation, but existing homes will likely see this requirement applied to them in the future, so the value of a home with solar already installed can really only increase from here. This incredible return is part of what makes solar such a strong investment – it gives you both short term benefits and long term gains.
The third pillar of solar value is the incentives that come with and support your investment in solar, and here is where we will see changes in 2026. The tax credit is definitely an impactful incentive, and as an advocate for accessible clean energy, we’re sad to see it being sunset so soon, but it only represents one part of one pillar of the total value proposition of solar. When we see people worrying that the industry is suddenly in grave danger, we point to these pillars to help people understand and contextualize the scale of what is changing: not the whole industry, just one part of one part.
Many federal and state programs still exist to make your solar decision easier, so ultimately the value of a solar installation remains largely the same, but the end of the tax credit is a good reminder of one important truth. The incentive pillar of solar is one that will continue to be adjusted over time, until the day when solar is ultimately a requirement. When that day comes, there will be far fewer incentives provided to sweeten the deal, as is often the case with required vs. elective programs. Better to take advantage of this pillar now while it remains robust, even with the departure of the tax credit.
Incentives in 2026
Despite the end of the tax credit, the larger provisions provided by the Inflation Reduction Act still remain for residential installations and related clean energy technology. In 2026, you’ll be able to enjoy the credits, discounts, and rebates provided to all energy efficient upgrades, including battery storage and EV chargers. There are also plenty of state incentives to consider, with a green energy marketplace full of opportunities for those looking to save big via electrification and energy efficient appliances.
We’ve talked about financing opportunities in the past, but there’s a big one on the horizon that is about to take center stage in 2026, and it’s worth being ahead of the curve for this one if you want to save big on a solar installation of your very own. While the tax credit is ending for residential customers, financing organizations like HDM will still have access to the commercial credit for 2 more years, which means they have an opportunity to work with you and pass those savings on to you even after the end of year deadline.
This is your opportunity to access a similar value to the tax credit simply through system financing, and it’s an opportunity that could save you north of 20% of your project cost. Now, there is a caveat to consider – these financed projects only qualify for the commercial tax credit if they use the right amount of domestic content – meaning components and materials made in the United States. Luckily for you, Simply Solar has been hard at work researching the new legislation and sourcing materials to qualify for this domestic content requirement, so you’ll be able to access a tax credit style savings long after the residential deadline passes.
In 2026, we foresee this financing credit opportunity shaping a lot of the conversation around savings, but whether or not you decide to finance a system or purchase it outright, you’ll still be able to make a great investment with both short and long term benefits. If you want to explore the future of solar with us, schedule an appointment today. We will show you what solar will look like in 2026 and beyond.
