Incentives · verified July 2026
Did the 2025 tax law kill the solar battery tax credit?
Short answer for Maryland homeowners: yes — the federal 30% credit ended December 31, 2025, and it covered batteries too. But there's still one honest way to capture federal value, and Maryland has its own grant. Here's exactly where each one stands, checked against the primary sources.
Is the federal solar tax credit really gone in 2026?
Yes. The One Big Beautiful Bill Act (signed July 4, 2025) ended the federal Residential Clean Energy Credit — IRC §25D, the 30% credit homeowners claimed — for any expenditure made after December 31, 2025. There's a catch worth knowing: the law counts your expense as “made” when the installation is completed, not when you pay. So even if you signed and paid in 2025, if the system was switched on in 2026, you don't qualify. For a homeowner buying in 2026, the federal residential credit is $0.
Did that credit cover home batteries, or just solar panels?
It covered batteries too. Since 2023, a standalone home battery of at least 3 kilowatt-hours qualified for the same 30% credit — with no dollar cap, and you didn't need to add new panels to get it. That made adding storage to an existing solar home a genuinely good deal. It ended on the exact same date as solar, December 31, 2025, with no battery-specific extension.
Is there any way to still capture federal value in 2026?
Yes — indirectly, through a lease or power purchase agreement (PPA). When a third party owns the system, that company can still claim the federal commercial clean-energy credit (§48E) and pass the value to you as lower monthly payments. This window is phasing out under the new federal rules, so it rewards acting sooner rather than later. We'll tell you exactly what your installation qualifies for, and whether owning or leasing makes more sense for your situation.
What about Maryland's own incentives?
Maryland's state storage tax credit ended after 2024. It was replaced by the Residential & Commercial Energy Storage (RCES) grant, which pays homeowners the lower of 30% of the system cost or $5,000. It's funded once a year and awarded first-come, first-served — and the 2026 round is fully subscribed and closed. Maryland has indicated a new round is expected to open in summer 2026; last year's funding was claimed within weeks.
So what can I actually get if I add a battery in Maryland in 2026?
Two paths. Buying with cash or a loan: there's no federal credit, and no Maryland grant is open right now — the next opportunity is Maryland's anticipated summer 2026 grant round. Leasing or a PPA: you won't claim a credit yourself, but the system's owner can still claim the federal §48E credit and pass the value through as lower payments, for a limited window. The right answer depends on your home — which is exactly what a free assessment sorts out.
Every incentive, and where it stands in 2026
| Incentive | Status |
|---|---|
| Federal 30% residential credit (§25D) | Ended Dec 31, 2025 |
| Standalone home battery credit (§25D, ≥3 kWh) | Ended Dec 31, 2025 |
| Federal credit via lease / PPA (§48E) | Available — time-limited |
| Maryland storage tax credit | Ended after 2024 |
| Maryland RCES storage grant (up to $5,000) | FY26 closed · next round expected summer 2026 |
The honest bottom line: if you're buying a battery outright in 2026, there's no federal credit and no Maryland grant open today — so the case rests on backup value, energy savings, and getting in line for Maryland's next grant round. If a lease or PPA fits, you can still capture federal value indirectly, for a closing window. We'll show you both, honestly.
Maryland's next grant round
Want a shot at the next Maryland battery grant?
Maryland's next storage grant round is expected to open this summer — it's first-come, and last year's funding was gone in weeks. Tell us about your home and we'll help you be ready to apply the day it opens, plus give you a straight read on whether buying or leasing makes more sense for you.
Get on the list — free assessmentSources · last verified July 2026
- 26 U.S. Code §25D (Residential Clean Energy Credit)
- IRS — FAQ on OBBB (P.L. 119-21) energy credit changes
- IRS Notice 2025-42 (§48E/§45Y beginning of construction)
- Maryland Energy Administration — Energy Storage grant
Incentive programs and tax rules change, and some 2026 details (like Maryland's next grant round and federal begin-construction guidance) were still developing when this was written. This page is general information, not tax advice — we'll confirm what applies to your specific installation, and you should consult a tax professional before making a decision based on any credit or grant.