With the federal residential tax credit now expired, many homeowners are asking whether it still makes sense to go solar in 2026, or whether waiting makes more financial sense. For most homeowners, going solar now still beats waiting — rising electricity rates outweigh the lost tax credit for typical payback timelines.
The Case for Going Solar Now vs. Waiting
| Factor | Go Now | Wait |
|---|---|---|
| Tax credit (25D) | Not available (expired Dec 2025) | Unlikely to return short-term |
| Electricity rates | Locked in at today’s rates | Rates continue rising 3-5%/year historically |
| Panel costs | Near historic lows | Modest further declines possible, but slower |
| Lease/PPA option | Section 48E credit still benefits installer | Same option available later |
Why the Tax Credit Expiration Changes the Math
The Section 25D residential credit expiring December 31, 2025 removed a 30% cost reduction for homeowners buying their system outright — this genuinely extends payback periods, though it doesn’t eliminate solar’s value.
Electricity Rates Keep Climbing
Utility rates have historically risen 3-5% annually, and every year without solar is a year paying full retail rates — this ongoing cost is often larger over 20-25 years than the lost tax credit.
Panel Costs Are Near Historic Lows
Equipment costs have fallen dramatically over the past decade and further declines are likely to be modest — waiting for a bigger price drop rarely pays off compared to starting savings sooner.
Leases and PPAs Still Get a Tax Benefit
Homeowners who lease or sign a PPA still indirectly benefit from Section 48E, which remains active for installers through 2027 — this can make third-party-owned systems more attractive than before.
Get a personalized cost/savings analysis for your home: (855) 427-0058
Frequently Asked Questions
Should I wait for the tax credit to come back before going solar?
Not recommended — there’s no indication the 25D credit will return soon, and waiting means paying full electricity rates in the meantime.
Is solar still worth it without the 30% tax credit?
Yes for most homeowners, though payback periods are longer than before 2026.
Will solar panel prices drop significantly if I wait?
Unlikely — prices are near historic lows already, with only modest further declines expected.
Are leases and PPAs still tax-advantaged?
Yes — Section 48E benefits the installer, which can translate to better lease/PPA terms.
How much do electricity rates typically rise each year?
Historically 3-5% annually, which adds up significantly over a 20-25 year system lifespan.
What’s the biggest risk of waiting to go solar?
Continuing to pay full retail electricity rates while the tax credit is unlikely to return.
How do I know if solar makes sense for my home now?
A personalized quote comparing your current rates, roof, and financing options is the best way to decide.
Summing Up
For most homeowners, going solar now still makes financial sense despite the tax credit’s expiration. For a personalized analysis, call (855) 427-0058 or visit us.solarpanelsnetwork.com.
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