Short answer: The 30% federal solar tax credit for homeowners, officially the Residential Clean Energy Credit (Section 25D), ended for systems installed after December 31, 2025. If your system was installed in 2025 or earlier, you can still claim it on that year's tax return. For new installs in Florida, the main savings now come from the state's sales-tax and property-tax exemptions and from net metering.
What changed in 2025
The federal budget law signed in July 2025 ended the residential solar credit early. Before that change, it was scheduled to stay at 30% through 2032. Now:
- Installed by December 31, 2025: eligible for the 30% credit, claimed on your 2025 return with IRS Form 5695.
- Installed on or after January 1, 2026: not eligible for the homeowner credit.
- Batteries: the credit for home batteries ended on the same date.
A system generally counts as installed when the installation is complete, not when you sign the contract or pay a deposit. Ask a tax professional about your own dates.
If you installed in 2025 or earlier
- Claim the credit with IRS Form 5695, filed with your return for the year the system was installed.
- Eligible costs included panels, inverters, racking, wiring, batteries and installation labor.
- The credit is nonrefundable, but unused credit can carry forward to future tax years.
- Keep your contract, invoices and proof of payment.
What still applies in Florida in 2026
- Sales-tax exemption: solar energy equipment is exempt from Florida's 6% state sales tax.
- Property-tax exemption: the value a residential solar system adds to your home is excluded from your property tax assessment.
- Net metering: FPL credits the power you send back to the grid at the retail rate on your bill. Electric co-ops and municipal utilities set their own rules, so check with yours.
Leases and power purchase agreements
If a company owns the system and you lease it or buy its power (a PPA), that company may still be able to claim a commercial clean-energy credit for a limited time and reflect it in your price. Read the contract carefully, especially any yearly rate increase, and compare it with the cost of owning the system.
Is solar still worth it without the credit?
Often, yes, but the payback is longer than older estimates that counted the 30% credit. It depends on your system cost, your utility rate and how much of the power you use at home. MSM Solar's quotes don't count incentives that no longer exist, and we show you the expected payback for your home.
Be wary of any quote in 2026 that still subtracts a 30% federal credit for a homeowner-owned system.
Frequently asked questions
Can I still get the federal solar tax credit in 2026?
Not for a system you own that was installed in 2026. If yours was installed by December 31, 2025, you can claim it on your 2025 return.
Does Florida have a state solar tax credit?
No. Florida has no state income tax, so there's no state solar credit. It offers the sales-tax and property-tax exemptions instead.
What if my credit was more than the tax I owed?
The unused part can carry forward to future tax years. A tax professional can confirm how it applies to you.
Get a quote with 2026 numbers or call (850) 737-5197.
This article is general information, not tax advice. Talk to a tax professional about your situation.