Questions answered: Costs, credits & heat pumps
Is there still a federal tax credit for solar panels or a home battery?
Updated . Every answer lists the sources we read it from. If we couldn't back an answer, we left the question out.
The Energy Efficient Home Improvement Credit (25C), which covered qualified heat pumps, water heaters, exterior doors, windows and insulation, is not allowed for property placed in service after December 31, 2025. ENERGY STAR's heat pump page still describes a credit through 2032; the IRS's later guidance ends it after 2025.
If you lease solar or sign a power purchase agreement, the Department of Energy notes you are not entitled to the tax benefits, because you do not own the system.
Run your own numbers: All 2026 federal end dates
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All 7 questions on costs, credits & heat pumps · Every question we answer
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2026 incentivesEvery federal end date, and state rebate links.Estimates only. Your actual costs depend on your utility's rate plan, how and when you charge or use power, and local prices. This is general information, not financial, tax or legal advice. See our disclaimer.