Solar + Battery in 2026: What Texas Homeowners Need to Know About New Tax Credits
The landscape for solar energy and home battery storage incentives is changing significantly in 2026. Texas homeowners considering solar panels or battery systems need to understand how federal tax credits have shifted, what incentives are expiring, and what options still exist for long term savings.
Understanding these changes now can help homeowners make smarter energy decisions and avoid missing out on major incentives.
Federal Solar Tax Credits Are Changing in 2026
For years, homeowners could claim a 30% federal tax credit—known as the Residential Clean Energy Credit (Section 25D)—to offset the cost of installing solar panels and battery storage. This credit provided a dollar-for-dollar reduction in federal income taxes and made solar far more affordable.
What Changes After December 31, 2025?
Starting January 1, 2026, the residential federal solar tax credit for homeowner-owned systems is no longer available.
This means:
Homeowners cannot claim the 30% tax credit on solar panels or battery storage installed in 2026 or later if they own the system.
To qualify, the system must be placed in service before January 1, 2026
Eligible costs include equipment, installation labor, and related expenses - but only if installed by the deadline
Solar + Battery Storage: What Still Offers Savings?
Although the residential credit ends, solar incentives do not disappear entirely. Instead, they shift to different ownership structures.
Third-Party Ownership (Leases & PPAs)
In 2026 and beyond, solar systems owned by third parties may still qualify for federal incentives under the commercial Investment Tax Credit (Section 48E).
Here’s how that helps homeowners:
The solar provider—not the homeowner—claims the tax credit
Savings are often passed on through lower lease payments or electricity rates
Homeowners avoid upfront system costs while still benefiting from solar energy
This structure remains a viable option for many Texas households after 2025.
Battery Storage Incentives Still Available
Under the commercial tax credit rules: Solar battery storage systems remain eligible for tax credits under Section 48E, and this benefit extends through 2032 for energy storage, even if those systems are not owned by the homeowner directly.
What This Means for Texas Homeowners
🔋 Solar Panels + Battery Storage in 2026
If you already installed (and paid for) your system in 2025 and it was operational before January 1, 2026, you can still claim the 30% tax credit on:
Solar panels
Battery storage systems
Installation labor and related costs
Systems installed after this deadline will not qualify for the direct homeowner tax credit, though leasing or third-party ownership may still bring savings through the commercial ITC.
📉 What Happens if You Wait
Installing solar or battery systems after 2025 without a lease or PPA means missing out on the 30% tax credit, potentially increasing upfront costs by thousands of dollars.
Rising electricity prices in Texas and strong net metering policies can still make solar systems financially attractive in the long run, even without the credit — but ROI timelines may lengthen.
Why Adding Battery Storage Still Matters
Even without direct homeowner tax credits in 2026, there are strong reasons to pair solar with battery storage:
🔋 Energy Independence
Battery systems store excess solar energy so your home can use it during:
Nighttime hours
Grid outages
Peak electricity pricing periods
This helps reduce reliance on the grid and can save on utility bills.
⚡ Resilience and Reliability
Texas weather — particularly summer heat waves — can threaten grid stability. A home battery gives you backup power when you need it most.
📈 Future-Proofing Your Home
Homes with integrated solar + storage systems tend to have higher resale value and appeal.
Bottom Line: Solar Incentives Are Changing - Not Disappearing
2026 marks a major shift in residential solar incentives. While the direct 30% homeowner tax credit expires, alternative pathways still exist through leasing structures, commercial credits, and battery storage incentives.
With the right planning, Texas homeowners can continue to:
Reduce utility costs
Increase energy independence
Invest in long-term home performance
Trusted Solar & Battery Guidance for Texas Homeowners
Everest Home Services partners with established, nationally recognized solar providers to help homeowners navigate these changes confidently. Our vetted partners meet strict standards for compliance, system design, installation quality, and long term performance.
By connecting homeowners with proven solar and battery solutions, we help simplify the process and ensure energy systems are built for durability, efficiency, and long-term value - especially in the Texas climate.