If you've been planning a solar or battery storage installation and someone quoted you a "30% federal tax credit," that conversation needs to be updated. On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (H.R.1), which accelerated the termination of most residential clean energy tax credits. Here is the honest picture as of early 2026.
What Expired December 31, 2025
Solar panels: The 30% Residential Clean Energy Credit (IRS Form 5695) — which applied to the full cost of solar panel purchase and installation — expired for systems placed in service after December 31, 2025. If your system was operational and you received your utility permission to operate (PTO) by December 31, 2025, you can still claim it on your 2025 federal tax return.
Home battery storage: Same deadline. EcoFlow DELTA Pro Ultra, Tesla Powerwall, Franklin WH — any battery installed and commissioned by December 31, 2025 qualifies. Systems completed in 2026 do not receive federal credit.
Energy efficiency upgrades: The Energy Efficient Home Improvement Credit — worth up to $3,200 per year for qualifying HVAC, windows, insulation, and electrical panels — also expired December 31, 2025.
What Survives Until June 30, 2026
One major federal incentive remains: the Alternative Fuel Refueling Property Credit (IRS Form 8911) for EV charger installation. This covers 30% of hardware and installation cost, capped at $1,000 for residential properties. It remains available for chargers placed in service through June 30, 2026. This is the last federal clean energy incentive window for most California homeowners. If you have an EV and haven't installed a Level 2 home charger, the clock is ticking.
California State Programs Still Active
The loss of federal credits does not eliminate all incentives. California-specific programs remain in place:
- SGIP (Self-Generation Incentive Program): Battery storage rebates up to $1,100/kWh for equity resiliency customers (high fire-threat zones, medical baseline, repeated outages). General market budgets are currently waitlisted. Low-income and disadvantaged community residents should apply now.
- SCE Charge Ready Home: Up to $4,200 for combined panel upgrade + EV charger installation for Southern California Edison customers.
- NEM 3.0 economics: California's net billing tariff still makes solar-plus-battery financially viable, though the payback period lengthens without the 30% federal credit. A properly sized system can still achieve 5–8 year payback depending on utility rates and consumption.
What the Math Looks Like Now
A typical solar-plus-storage installation in Southern California that would have cost $35,000 and returned $10,500 in federal credits now costs the full $35,000 out-of-pocket (or financed). SGIP can offset $5,000–$15,000 for eligible customers. California utility rates continue to rise — SCE's average residential rate crossed $0.45/kWh in 2025 — which means the energy cost savings from solar and battery remain substantial even without the federal credit.
Our Recommendation
Do not delay EV charger installation. The June 30, 2026 deadline for the $1,000 federal credit is firm. For solar and battery, run the numbers without the federal credit — in most Southern California locations, the math still works, especially for SCE and SDG&E customers facing the highest rates. Contact us for a no-obligation assessment of your specific situation.