Here's the honest version.
The federal 30% residential solar tax credit is gone. It expired December 31, 2025 when the residential credit (Section 25D) was eliminated. Homeowners who buy solar with cash or a loan in 2026 do not get a 30% tax credit. Period.
Plenty of solar companies are still running ads referencing "the 30% credit" or publishing blog posts that haven't been updated. Pay attention to who's telling you the truth and who isn't. It tells you something about how they'll treat you after you sign.
The credit is gone for most homeowners. But solar still makes financial sense in Florida and California, just through different math now. Here's what actually exists in 2026.
Section 25D: The 30% Residential Tax Credit
This was the credit that let you deduct 30% of your solar installation cost from your federal tax bill. It applied to systems where the homeowner purchased the equipment: cash or loan.
It expired December 31, 2025. Not available in 2026 for cash or loan purchases. If you see a solar company still advertising it, that's a red flag.
This is the part that most homeowners don't know about, and it's important.
The Section 48E commercial investment tax credit is still active. It applies to solar companies and financing partners who own the systems they install. When a leasing company owns your panels, they can claim this credit and pass that savings to you through lower monthly payments.
There's a deadline: construction must begin by July 4, 2026 for projects to qualify. Systems must be placed in service by December 31, 2027.
What this means for you: the $0-down, lower-monthly-payment path to solar is still intact in 2026. The lease economics that made solar accessible without a big upfront investment haven't disappeared. The financing companies that structure these deals are using Section 48E the same way they always operated. The homeowner's residential credit was a separate mechanism. It's now gone for direct purchasers.
On whether KIN's specific financing partners pass through the Section 48E benefit to customers: that varies by lender and deal structure. Talk to your KIN solar consultant about what's available for your situation.
Florida doesn't have a state income tax, so there's no state-level solar tax credit. What it has is arguably better for long-term savings.
Full Retail Net Metering
Florida law requires the major utilities, including Florida Power and Light, Duke Energy Florida, Tampa Electric, and Florida Public Utilities to credit you for excess solar energy at the full retail electricity rate. When your panels produce more than your home uses, the surplus goes to the grid and you get credited dollar for dollar.
Most states have weakened net metering in recent years. Florida's held. For a properly sized system, this alone eliminates most or all of your monthly bill.
One note: Florida's net metering policy has been under periodic review. Homeowners who install now are typically grandfathered into the current full retail rate if the policy changes. This is worth understanding before you wait.
Sales Tax Exemption
Solar equipment is exempt from Florida's 6% sales tax. On a $25,000 system, that's $1,500 you don't pay.
Property Tax Exemption
Solar panels add value to your home. Florida excludes that added value from your property tax assessment through 2037. Your home is worth more, but your tax bill doesn't go up.
Rising Utility Rates
This isn't a rebate, but it's a real part of the math. FPL rates are already higher in 2026 and are projected to reach $148/month for typical customers by 2029. Duke Energy Florida and Tampa Electric also raised rates in 2025–2026. Every dollar your panels produce is worth more than it was two years ago, and that compounds over a 25-year system life.
California is more complicated post-2025, and it's worth being honest about that.
NEM 3.0 (Net Billing Tariff)
California switched to NEM 3.0 in 2023. The rate you get credited for exporting power to the grid dropped sharply compared to NEM 2.0: from near-retail down to roughly $0.05 to $0.08 per kWh. Buying electricity from the grid still costs you $0.34+ per kWh (up to $0.46+ with SDG&E).
The gap between what you pay and what you receive for exports means solar-only systems make less sense in California now. Solar paired with a battery is the right design for most CA homeowners. Store the power, use it at night, avoid buying from the grid at peak rates.
NEM 3.0 Export Adders
There are time-of-use export adders available through 2027 that improve the export economics for CA customers, particularly in the late afternoon and evening hours when grid demand peaks. These phase out, so earlier installations capture more of this value.
SGIP Battery Rebates
The Self-Generation Incentive Program (SGIP) offers rebates for home battery storage. As of March 2026, all budget categories are on waitlist. General market residential is 12–18 months out, equity resiliency 18–24 months, and the income-qualified RSSE/AB 209 tier is fully reserved.
Do not count on near-term SGIP funding if you're planning a CA install in 2026. The economics need to work without it.
Property Tax Exclusion: Expires December 31, 2026
California excludes the added home value from a solar system from property tax reassessment. This benefit expires January 1, 2027, and no extension has been enacted. For a CA homeowner with a $20,000 to $35,000 solar system, this is real money: permanently excluded from your annual property tax calculation.
If you're on the fence about going solar in California, this deadline is worth taking seriously. The exclusion ends at year-end. No extension. Install before January 2027 or pay higher property taxes on the added solar value for as long as you own the home.
Without the 30% residential credit, the upfront economics are harder for cash buyers. That's true. Here's what it looks like:
Florida cash purchase (2026, no federal credit):
California cash purchase (2026, no federal credit):
Lease options (Section 48E still active):
KIN also installs HVAC systems and handles roofing. This matters for a few reasons.
A leaky or aging roof affects your solar installation. We assess roof condition before any solar project and can handle both in the same process if needed, rather than coordinating two different contractors.
HVAC efficiency and solar work together. If your home is burning through electricity because of an inefficient AC unit (common in Florida), the solar system you'd need to offset that bill is larger and more expensive. Addressing both at once often leads to a better outcome than treating them separately.
We're not pitching a package deal. We're saying these things are connected, and we can look at your home's full energy picture.
The federal residential tax credit is gone for cash and loan buyers. That's a real change and it affects the payback math.
What remains: net metering, state tax exemptions, the lease path that was never dependent on the residential credit, and rising utility rates that make every kWh your panels produce more valuable each year.
Florida homeowners have strong net metering and escalating utility rates working in their favor. California homeowners have the property tax exclusion deadline creating urgency through 2026, and high electricity rates that make the math compelling even without SGIP.
If you want to know what this looks like for your home, get an estimate. Not a national average. Not a best case. We'll run the actual numbers.
Free estimate: call (855) 264-0363 or visit kinhome.com
Reflects incentive status as of March 2026. Tax credit policies can change. Consult a tax professional for guidance specific to your financial situation.