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HomeIncentivesUS Federal Solar Battery Tax Credit (Section 25D): What Changed in 2025

US Federal Solar Battery Tax Credit (Section 25D): What Changed in 2025

Section 25D residential credit expired December 2025. No federal ITC for 2026 battery purchases. Carry-forward rules for 2025 filers and state alternatives.

ByBatteryBlueprint Editorial
9 min read

BatteryBlueprint Editorial Team

Research-led guides and tools built for homeowners sizing solar battery storage. Our content is compiled by the BatteryBlueprint Editorial Research Team and strictly verified against methodology standards.

Critical update โ€” September 2026: The US federal Section 25D Residential Clean Energy Credit (the 30% battery and solar tax credit) was terminated for property placed in service after 31 December 2025. This page explains the current status, what options remain, and what 2025 filers with carry-forward credits need to know.

Primary source: IRS guidance on Section 25D; 26 U.S. Code ยง 25D. Reviewed September 2026.

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What Happened to the 30% Federal ITC?

The residential Section 25D Residential Clean Energy Credit was terminated for any qualified clean energy property placed in service after 31 December 2025.

There is no phase-down โ€” the credit went from 30% to 0% for 2026 installations.

For homeowners installing in 2026 or later: No federal residential tax credit is available under Section 25D.

For homeowners who installed in 2025 or earlier: If you have unused Section 25D credit from an eligible installation completed on or before 31 December 2025, you can still carry that credit forward to offset federal tax liability in future tax years. Note that Section 25D explicitly applies only to battery storage technology with a capacity of 3 kilowatt-hours or greater (source: 26 U.S. Code ยง 25D(a)(6)).

Section 25D vs Section 48E

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