If you've looked into solar this year, you've probably heard some version of this: "The tax credit's gone, so solar isn't worth it anymore."
We hear it on almost every call. The honest answer is that it depends on how you go solar. If you planned to buy a system with cash, 2026 is a harder math problem than 2025 was. If you lease, the picture has changed a lot less than the headlines suggest. And with power bills still climbing across our area, plenty of families are finding the numbers still work.
Here's what changed, what didn't, and how to tell whether solar makes sense for your house.
The short answer
- The 30% homeowner tax credit is gone for any system installed after December 31, 2025. A contract signed in 2025 doesn't save it.
- Leased systems still carry a federal incentive. The company that owns the panels claims it, and the savings are built into your monthly price.
- Utility rates keep rising in West Virginia, Pennsylvania, Virginia and Michigan. Solar doesn't have to be free to be worth it. It just has to cost less than your power bill.
- There's a clock on leases. Under current law, new systems generally need to be running by December 31, 2027 for the owner to claim the credit.
What happened to the 30% tax credit?
For years, homeowners who bought a solar system could take 30% of the cost off their federal taxes. That was the Residential Clean Energy Credit, often called 25D.
The 2025 federal tax law ended it. According to the IRS, the credit "will not be allowed for any expenditures made after December 31, 2025" (IRS FAQ). The IRS treats the expense as made "when the original installation of the item is completed," not when you signed or paid. So if your panels went up in 2026, there's no homeowner credit, even if the contract is from last year.
That's a real loss if you were planning to pay cash. On a $25,000 system, you'd have gotten $7,500 back at tax time in 2025. In 2026, you pay the full $25,000.
So why are people still going solar?
Two reasons: leases still carry a federal incentive, and electric rates keep going up.
Leases work differently
When you lease solar, you don't own the panels. A leasing company does, and it's the one that claims the federal credit. That's a business credit (known as 48E), not the homeowner credit, and the new law kept it for solar panels. The Solar Energy Industries Association puts it plainly: there's "no ban on third-party rented or leased solar systems" (SEIA).
The owner's credit gets built into the price you pay each month. You never touch your own tax return, and you don't need a big tax bill to benefit. The owner also has to follow new rules about where the equipment comes from, which is part of why it pays to work with an installer who keeps up with them.
Your utility isn't standing still
This is the part people tend to forget. Nationally, the U.S. Energy Information Administration expects the average home electricity price to go from 17.3¢ per kWh in 2025 to 18.2¢ in 2026, a jump of about 5% in a single year (EIA). Closer to home, the power companies have been busy:
| Utility | What changed | Source |
|---|---|---|
| Appalachian Power (WV) | About 4% higher starting June 1, 2026. Roughly $10 more a month if you use 2,000 kWh. | WV MetroNews |
| Mon Power / Potomac Edison (WV) | +$3.65 a month in August 2026, then another +$4.01 in June 2027 | WDTV |
| Duquesne Light (PA) | Default price rose from 13.75¢ to 14.14¢ per kWh in June 2026 | Rate Watchdog |
| DTE (MI) | About +$4.23 a month starting March 2026 | Michigan Advance |
| Appalachian Power (VA) | Asking for +$9.10 a month, plus about +$3.99 for a year, as early as March 2027 (based on 1,000 kWh a month) | Cardinal News |
Figures as of September 2026.
None of these numbers is huge on its own. But they stack. A few dollars here, a few dollars there, year after year.
What that adds up to
Here's a simple example. Say your bill is $180 a month today, and rates rise 3% a year, which is gentler than this year's national jump.
| Monthly bill | |
|---|---|
| Today | $180 |
| In 5 years | About $209 |
| In 10 years | About $242 |
| Total paid over 25 years | About $78,750, versus $54,000 if rates never moved |
That's roughly $24,750 you'd pay just in increases. A solar lease payment is set when you sign, so every one of those increases widens the gap in your favor. This is an illustration, not a quote. Your numbers depend on your home, your usage and your utility.
Buying vs. leasing in 2026: a side-by-side
| Buying (cash or loan) | $0-down lease | |
|---|---|---|
| Upfront cost | Full price, with no 30% back | $0 |
| Federal credit | None for you | Claimed by the owner and built into your price |
| Monthly cost | Loan payment, or nothing if you paid cash | A set lease payment, as low as $67/month for homes that qualify |
| Repairs and maintenance | On you | Included |
| System monitoring | Depends on the installer | Included |
| Best fit if... | You have the cash and plan to stay 15+ years | You want a lower bill without a big purchase |
Buying can still pay off, especially if you have cash on hand and you're staying put for a long time. But for most of the families we talk to, the lease is the easier yes this year. You can compare every option on our financing and leasing page.
What about net metering?
Net metering is how your utility credits you for extra power your panels send back to the grid. It matters, and it's gotten less generous in some places:
- Pennsylvania still credits extra power at the full retail rate each month. Anything left over at the end of the year (May 31) is paid out at the lower "price to compare" rate (PA Code).
- Mon Power and Potomac Edison (WV) customers who applied after December 31, 2024 get about 9.3¢ per kWh for extra power. New Appalachian Power (WV) customers get about 12.4¢ (Solar United Neighbors).
- AEP Ohio credited extra power at about 11¢ per kWh in 2025, as a bill credit rather than a check (SolarReviews).
In plain English: you want a system sized to what your house actually uses, not a giant one that ships a bunch of power back to the grid at a discount. That's why we design every system from your last 12 months of bills instead of guessing.
Is there a deadline?
For leases, yes. Under current law, a solar project that didn't start construction by July 4, 2026 has to be up and running by December 31, 2027 for the owner to claim the federal credit (SEIA).
We're not going to pretend we know what lease pricing looks like after that. Nobody does yet. But permits, utility approval and installation all take time, so if you've been on the fence, now is a good time to at least get the numbers for your house.
5 questions to ask before you sign any solar lease
Not every lease is built the same. Whoever you go with, get clear answers to these:
- Is my payment fixed, or does it go up each year? Some leases include a yearly increase. Know which one you're signing.
- Was the system sized from my actual bills? A design based on 12 months of real usage beats a guess from square footage.
- Who pays for repairs, and what if I need a new roof? Ask who handles removing and reinstalling panels.
- What happens if I sell my house? Find out how the transfer works and who helps the buyer through it.
- What happens when the lease ends? Ask about your options at the end of the term.
Quick gut check: is solar right for you?
Solar is usually worth a closer look if most of these sound like you:
- You own your home.
- Your roof gets decent sun (south, east or west-facing, without heavy shade).
- Your electric bill runs $100 a month or more.
- You're tired of your bill going up and would rather lock in a payment.
- You like the idea of $0 down, with maintenance handled for you.
If that's you, check what $0-down solar would cost for your home. It takes about two minutes, and you'll see an estimate and a design for your actual roof. No pressure, and no obligation. Prefer to talk it through? Book a free consultation with our team.
Common questions
Can I still get the 30% solar tax credit in 2026?
Not as a homeowner. The credit ended for systems installed after December 31, 2025, even if you signed the contract earlier.
Do leased solar systems still get a tax credit?
Yes, but not one you claim. The company that owns the system can still claim a federal business credit, as long as the project meets the construction and in-service deadlines. That savings shows up in your lease price.
How much is a solar lease per month?
It depends on your roof, your sun and how much power you use. Qualifying homes start as low as $67 a month with nothing down.
What if I sell my house with a leased solar system?
The lease can transfer to the buyer. LightSkye walks you and the buyer through the process.
Is it still worth buying solar with cash in 2026?
It can be, if you have the cash, plan to stay 15 years or more, and your utility credits extra power fairly. Without the 30% credit it takes longer to pay off than it did in 2025, so run the numbers both ways before you decide.
Is solar worth it in West Virginia or Pennsylvania?
With rates going up at Appalachian Power, Mon Power and Duquesne Light, many homeowners here save with a lease sized to their actual usage. Our West Virginia solar guide has more, or you can get a free estimate for your home.
No homeowner federal tax credit is available for systems installed after 12/31/2025. Lease pricing reflects incentives claimed by the system owner. Savings vary based on your home, energy use and utility rates. Rate and policy information is current as of September 2026. This article is general information, not tax advice.