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Money · 5 min read

Is There a Tax Credit for Balcony Solar in 2026 or 2027?

The big federal home solar credit ended on 31 December 2025. Here is what that means for a plug-in kit.

The short answer

No. The federal Residential Clean Energy Credit, known as 25D, is not available for property placed in service after 31 December 2025, says the IRS. That covers balcony solar bought in 2026 or 2027. Prepaying in 2025 for a 2026 install does not count either. Check your state and utility for other help.

If you searched for a solar tax credit for 2027, here is the short version. The main federal credit is over. This page says what ended, what still might help, and why the numbers matter more now.

What happened to the federal solar tax credit?

The IRS says the Residential Clean Energy Credit is not available for any property placed in service after December 31, 2025. The One Big Beautiful Bill Act moved the end date up from 2032. The IRS page we read still mentions a 2033 phase-out in older text, so read it with care. The end date is the one in the IRS statement above.

Can you still claim it for a kit bought in 2026?

No. Under the rule, an expense counts when the install is finished, not when you pay. So prepaying in 2025 for a 2026 install does not qualify. That comes from an Accounting Today summary of the IRS FAQs. CraftStrom's product page also says the credit expired on December 31, 2025.

Is there a tax credit for solar in 2027?

We did not find a federal credit for a home balcony kit in 2027. We have not checked every state or utility offer. Do not budget for a credit unless you see one from your state or utility in writing. Talk to a tax professional about your own case.

Does that change the math?

Yes. Without the credit, you pay full price. Use our savings numbers, which already assume no credit. Kits range from $285.30 to $2,031 in our kits roundup. The cheapest kits matter more now. Whether you can use one at all depends on your state, so see which states allow it.

Sunny says
Sunny says: a seller who promises a 30% federal credit on a 2026 or 2027 kit is wrong. Walk away.

The quick version

Common questions

What is the 25D credit?

It is the Residential Clean Energy Credit, a federal tax credit for home solar and other clean energy gear. The IRS says it is not available for property placed in service after December 31, 2025.

Is there a solar tax credit for 2027?

We did not find a federal credit for a home balcony kit. Check state and utility offers, and ask a tax professional about your case.

Did the credit ever cover plug-in kits?

We did not verify that, and it no longer matters for 2026 or 2027. Do not count on any federal credit for a plug-in kit.

Why does the IRS page mention 2033?

The page we read still includes older phase-out text. The IRS statement on the same page says the credit is not available after December 31, 2025. Go with the statement.

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Where this comes from

Last checked October 21, 2026. How we check our facts

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