The elimination of tax credits for residential heat pumps, solar panels and batteries will make electrifying your home more expensive in 2026, and tariffs and made-in-America mandates could add additional costs.
Just how pricey remains to be seen. New financing models could help keep some solar and battery costs in check, according to Emily Walker, director of insights at online solar marketplace EnergySage.
The expiration of the 30% federal tax credit for solar and battery installations at the end of 2025 doesn’t necessarily make the equipment more costly to buy but for homeowners with a tax liability, it does end the ability to reduce or erase their tax bill. A typical solar and battery system generated tax credits worth about $10,000.
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