2026 Solar Incentives & Federal Credit Update.

Updated September 17, 2026. Federal and state program rules changed materially after older solar guides were published. This page separates current residential, California and commercial rules so a 2026 proposal is not built on an expired credit.

The federal residential credit ended for new 2026 installations

The IRS states that the Residential Clean Energy Credit under section 25D is not available for residential property installed after December 31, 2025. Signing or paying for a project in 2025 did not preserve the credit if the original installation was completed after that date.

Read the current IRS Residential Clean Energy Credit guidance →

What this means for a Fresno homeowner

• A new residential system completed in 2026 should be modeled without a new 30 percent federal section 25D credit.
• An unused credit from an eligible earlier year may have separate carryforward treatment. A tax professional should confirm the taxpayer's facts.
• A sales proposal should disclose financing cost, dealer fees, utility assumptions and any incentive separately.

California SGIP is eligibility-based

The California Public Utilities Commission lists SGIP paired solar-and-storage equity incentives for qualifying low-income residential customers. Eligibility, reservation status, incentive amount and program funding can change. NMS checks the current program before including any SGIP amount in a proposal.

Check the CPUC Self-Generation Incentive Program →

California property-tax treatment is separate

The California Board of Equalization describes an active solar energy system new-construction exclusion that can prevent a qualifying installation from increasing the property's existing assessment. The current statutory window runs through December 31, 2026. It is an assessment exclusion, not a cash rebate or federal tax credit.

Read the California Board of Equalization guidance →

Commercial projects use different federal rules

Business installations may qualify for the Clean Electricity Investment Credit under section 48E. IRS guidance lists a 6 percent base amount and an increase up to 30 percent when prevailing-wage and apprenticeship requirements are met. Construction timing, placed-in-service deadlines, entity status, domestic-content rules and tax appetite can change the result.

Read the IRS Clean Electricity Investment Credit guidance →

What a current NMS proposal should show

1. Gross installed price and the exact equipment included.
2. Cash, loan and PPA terms shown separately.
3. Utility-rate and production assumptions used for the savings model.
4. Any SGIP or local program listed as confirmed, pending or unavailable.
5. No residential federal credit for a new 2026 installation.

This page provides general program information, not tax or legal advice. Confirm tax eligibility with a qualified tax professional.