Guide · Updated October 19, 2026

Solar Generator Tax Credit 2026: Is the 30% Credit Gone?

Q: Is there a tax credit for a backup generator?

Not for a gas, propane or standby generator; those were never eligible for the residential energy credit. Battery storage was eligible through 2025, but that credit ended for expenditures after December 31, 2025.

Q: Is a solar generator still worth buying without the credit?

For outage backup, often yes, because the credit was a discount rather than the core benefit. Size the unit to your critical loads, favour expandable models so you can add capacity later, and time large purchases around the November sales.

Yes — for anything you buy and install in 2026, there is no federal residential tax credit for a solar generator or home battery. The One Big Beautiful Bill Act, signed July 4, 2025, ended the 30% Residential Clean Energy Credit (IRC Section 25D) for expenditures made after December 31, 2025. The IRS treats an expenditure as “made” when installation is completed, so paying in 2025 for a system installed in 2026 does not qualify either. This page explains what changed, what 2025 buyers can still claim, and what is left at the state level.

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By Morgan Chen Reviewed & approved by Juhi Sahni | Updated: October 19, 2026

Correction · October 2026

An Earlier Version of This Page Said the Credit Ran Through 2032

That schedule came from the Inflation Reduction Act and was overtaken by the July 2025 law. It also told readers to have a system running by December 31 of the current year to claim the credit, which is no longer correct for 2026 purchases. We have rewritten the page against the IRS's own guidance and moved it to this address. This page is general information, not tax advice — confirm your situation with a tax professional.

The Short Answer by Situation

Buying in 2026

No federal credit

Section 25D does not apply to expenditures made after December 31, 2025. A portable power station or home battery bought and installed this year earns no federal residential credit.

Installed in 2025

Claim on your 2025 return

If a qualifying system (3 kWh+ battery storage at a US home) was fully installed by December 31, 2025, the credit is still claimed on Form 5695 with your 2025 return.

Paid in 2025, installed in 2026

Does not qualify

The IRS answers this directly: the expenditure is made when installation is completed, so a 2026 installation falls outside the credit even if you paid in 2025.

Gas or standby generators

Never qualified

Section 25D covered solar, wind, geothermal, fuel cells and battery storage. Gas, propane and standby generators were never eligible, before or after the change.

Sources: IRS FAQs on the OBBB modifications to Section 25D; Congressional Research Service, “Expiration and Carryforward Rules for the Residential Clean Energy Credit”; SEIA explainer on the OBBB clean energy provisions.

What Changed: The Section 25D Timeline

Date	What happened	Effect on a battery or solar generator
2023–2025	Inflation Reduction Act rules	Battery storage of 3 kWh or more installed at a US home qualified for a 30% credit
July 4, 2025	One Big Beautiful Bill Act signed (P.L. 119-21)	Section 25D terminated for expenditures made after December 31, 2025
December 31, 2025	Last day an expenditure could be “made”	Installation had to be completed by this date
2026 onward	No residential credit	New purchases earn no federal residential credit; state and utility programs are the remaining option

The original schedule (30% through 2032, then 26% and 22%) is the one most older articles still quote. It no longer applies. If a seller or installer is still using it to justify a 2026 price, ask them to point to current IRS guidance.

If You Installed a System in 2025: How to Still Claim It

The termination did not take anything away from systems installed before the cutoff. If yours was complete by December 31, 2025, the claim works the way it always did.

Confirm the system qualified

The battery storage rule required a capacity of at least 3 kWh, installed in connection with a US home you live in. Small camping-class units (around 1 kWh) did not meet the capacity threshold.

File Form 5695 with your 2025 return

The credit is claimed on IRS Form 5695 (Residential Energy Credits). Keep the receipt and documentation showing when installation was completed — that date is what the cutoff turns on.

Understand the carryforward

The credit is non-refundable. If it exceeded your 2025 tax liability, the unused portion has historically carried forward to later years; the Congressional Research Service has a short explainer on how that interacts with the expiration. Ask a tax professional how it applies to your return.

What Incentives Are Left in 2026?

State and utility programs. Some states and utilities run their own battery storage incentives — California's Self-Generation Incentive Program (SGIP), overseen by the CPUC, is the best-known example. These programs typically target permanently installed home batteries rather than portable power stations, and their budgets, eligibility and amounts change often, so we do not publish figures here. The DSIRE database (NC Clean Energy Technology Center) is the most complete lookup by ZIP code.

Leases and PPAs. SEIA notes that third-party-owned systems can still carry a commercial credit claimed by the company that owns the equipment. That is an installer financing arrangement for rooftop systems — it is not something a buyer of a portable power station can use.

Utility demand-response programs. A few utilities pay home-battery owners to discharge during peak events. Eligibility is usually limited to specific connected home batteries; check with your utility before assuming a power station qualifies.

Is a Generator Tax Deductible?

For a generator at your own home used for personal backup, generally no — it is a personal expense, the same as any other household equipment. A credit (which reduces tax owed) and a deduction (which reduces taxable income) are different things, and the 25D credit was the only federal benefit most homeowners could have used.

The situations that differ are business use (a contractor's job-site power station, for example) and, in narrow cases, medically necessary equipment. Both depend on facts specific to you and are questions for a tax professional, not a product page. If job-site power is your use case, see our job-site power station guide.

Should You Still Buy a Solar Generator Without the Credit?

The credit was a discount, not the reason to own one. The case for a battery — silent, indoor-safe backup with no fuel to store — is unchanged. What changes is how you size it:

•Size to your critical loads, not a whole house. The 3 kWh threshold used to nudge buyers upward. Without it, buy the capacity your refrigerator, freezer, furnace blower and internet actually need — our solar size calculator does the arithmetic.
•Prefer expandable units. Buying a base unit and adding batteries later spreads the cost the credit used to absorb. See expandable power stations.
•Time the purchase. Large-capacity units have historically seen their deepest pricing during Black Friday week. Our price tracker logs what the listings actually do.

No Credit? Buy on Value Instead

Without the federal credit, the decision comes down to capacity per dollar and how the unit grows with you. These are the home-backup units in our database where that case is strongest. Prices are live; timing a purchase around the Black Friday window has historically mattered more than any tax angle.

Most capacity per dollar in the whole-home tier

Pecron F5000LFP Power Station

90/100

5,120 Wh 7,200W output 6,400W solar in 123.9 lb

5,120 Wh with 7,200W dual-voltage output and 6,400W of solar input. If you had been sizing a home system around the 30% credit, this is the unit where the raw watt-hours-per-dollar case is strongest without it.

See today’s price on Amazon

Check Price on Amazon →

At our lowest logged price — $2,199.00 · our log since Sep 18

Best expandable home backup

Anker SOLIX F3000

93/100

3,072 Wh 3,600W output 4,860W surge 2,400W solar in 91.5 lb

3,072 Wh expandable to 24 kWh, 3,600W output and 240V split-phase capability. Lets you buy the base unit now and add batteries later, which is the practical way to spread the cost the credit used to absorb.

$1,398.98Current price on Amazon

Check Price on Amazon →

At our lowest logged price — $1,398.98 · our log since Sep 18

Best mid-tier value

Bluetti Elite 200 V2

91/100

2,074 Wh 2,600W output 3,900W surge 1,200W solar in 48.5 lb

2,074 Wh with 2,600W output and 1,200W of solar input. Covers the core outage loads (refrigerator, freezer, furnace blower, internet) for most households at a mid-range price point.

$1,399.00Current price on Amazon

Check Price on Amazon →

Lowest we’ve logged: $899.00 (Oct 8) · our log since Oct 8

Best upgrade path from portable to home

Jackery Explorer 2000 Plus

91/100

2,042 Wh 3,000W output 6,000W surge 1,400W solar in 61.5 lb

2,042 Wh with 3,000W output and an expansion path to roughly 24 kWh. Starts as an RV or outage unit and scales into home backup on the same base unit.

See today’s price on Amazon

Check Price on Amazon →

At our lowest logged price — $899.00 · our log since Sep 21

Prices shown are the current Amazon price. Badges come from our own daily price log — see the solar generator price tracker; they describe what we observed on the listing, not a manufacturer claim or a prediction.

Related Guides

Black Friday Solar Generator Deals

The models we are watching, with live prices

Best Whole-Home Solar Generators

The 3–12 kWh systems compared

Can a Solar Generator Power a House?

Sizing with real appliance wattage tables

Transfer Switch & Home Wiring

Connecting a battery to your panel safely

Solar Generator Tax Credit FAQ

Is there a solar generator tax credit in 2026?

No. The One Big Beautiful Bill Act ended the Section 25D Residential Clean Energy Credit for expenditures made after December 31, 2025. A solar generator or home battery bought and installed in 2026 earns no federal residential tax credit.

I paid in 2025 but it was installed in 2026. Do I qualify?

No, according to the IRS. Section 25D treats an expenditure as made when the original installation is completed, so a system installed after December 31, 2025 does not qualify even if it was paid for earlier.

Can I still claim the credit for a system installed in 2025?

Yes. If a qualifying system was fully installed by December 31, 2025, claim it on IRS Form 5695 with your 2025 return. Battery storage needed a capacity of at least 3 kWh at a US home you live in.

Is there a tax credit for a backup generator?

Not for a gas, propane or standby generator — those were never eligible for the residential energy credit. Battery storage was eligible through 2025, but that credit ended for expenditures after December 31, 2025.

Are home generators tax deductible?

Generally not, when the generator is for personal backup at your own home — it is a personal expense. Business use and narrow medical-necessity situations can differ and depend on your specific facts, so ask a tax professional.

Are there state incentives for solar generators?

Some states and utilities offer battery storage incentives, such as California's SGIP. They typically target permanently installed home batteries rather than portable power stations, and the terms change often. Search the DSIRE database by ZIP code for current programs.

Is a solar generator still worth buying without the credit?

For outage backup, often yes — the credit was a discount, not the core benefit. Size the unit to your critical loads, favour expandable models so you can add capacity later, and time large purchases around the November sales, where large units have historically seen their deepest pricing.