The Solar Industry at a Turning Point: What 2026 Means for System Owners
SunQuest Solar Newsletter Blog | January 12, 2026
If you already own solar, 2026 is less about “new panels” and more about getting the most from what you already have. The big shifts are happening around tax rules, utility credits, and batteries, plus some pricing noise from trade actions. Here’s what to watch, and what you can do without overthinking it.
1) Federal Credits Changed, and Timing Now Matters a Lot More
If you installed solar in the last few years, you probably heard “30% federal credit” so often it felt permanent. It isn’t.
The IRS says the Residential Clean Energy Credit (Section 25D) is not allowed for expenditures made after December 31, 2025 under the One Big Beautiful Bill Act (Public Law 119-21). Congressional Research Service also found that the law repealed 25D for expenditures after calendar year 2025, and goes over how “expenditures made” interacts with carryforward rules. For homeowners who qualified in 2025, reporting has pointed out that unused credit can generally carry forward to future tax years, as long as the system qualifies in time.
Owner move for 2026: Keep your final invoice, proof of payment, and “placed in service” date in one folder. If you are planning an add on, ask your installer to separate equipment and labor line items so your paperwork is clean.
2) Utility Credits Matter More Than Panel Brand
A lot of Northeast homeowners are learning that the “rules of the road” are set by the utility and state program, not the module label.
New York: New York’s VDER “Value Stack” compensates exports using bill credits that depend on when and where your system helps the grid.
Connecticut: Connecticut’s Residential Renewable Energy Solutions program has a change starting January 1, 2026 for new customers, including a higher non bypassable charge that applies to all production, based on state policy updates.
Massachusetts: The state filed final regulations for the SMART 3.0 program in late August 2025, which is part of why incentives and adders are a moving target.
If you want a simple starting point, DSIRE maintains a nationwide policy database and a net metering overview page to help you confirm your state's current policy.
Owner move for 2026: Pull one electric bill and look for two numbers, how much you imported from the grid and how much credit you received for exports. If you export a lot mid day and buy a lot after 5 pm, you’re the type of home that can benefit most from load shifting or storage.
3) Batteries Are Turning Into a Normal Add On
Batteries are showing up more because homeowners want backup power, and because rate designs can reward using solar at home instead of exporting it.
It was found that in 2025, 40% of new residential solar installations were paired with storage. Industry coverage looking ahead to 2026 also points to storage, financing pressure, and a “bumpier” residential market, which tends to push homeowners toward higher value system setups.
Owner move for 2026: Decide what you want a battery to do before you shop. “Backup for essentials” is a very different design than “run most of the house.” Make a short list of must have circuits (fridge, Wi-Fi, some lights, maybe a well pump) and start from there.
4) Equipment Pricing Can Stay Choppy Because of Trade Actions
If you are thinking about expanding your system, replacing an inverter, or adding storage, you may notice quotes bounce around more than you expect.
The U.S. Department of Commerce announced final affirmative determinations in April 2025 for antidumping and countervailing duty investigations on crystalline PV cells from Cambodia, Malaysia, Thailand, and Vietnam. Major outlets reported tariffs that can be extremely high in some cases, and noted the industry debate about cost impacts.
Separately, Reuters reported the U.S. International Trade Commission voted to proceed with an investigation into imports from India, Laos, and Indonesia in 2025, showing this topic is still active.
Owner move for 2026: If you’re pricing an upgrade, get two quotes close together in time. Ask both contractors whether they can lock equipment pricing and for how long.
5) Monitoring Becomes Your Best “Maintenance Plan”
When export rules and rates vary, guessing gets expensive. Data keeps it simple. Owner move for 2026: Once a month, check:
This month vs the same month last year (weather won’t match perfectly, you’re looking for big swings)
Any sudden drop that doesn’t match a storm or outage
Shade changes, especially from trees If you see a weird drop, take one screenshot of the monitoring graph and one photo of the array. That’s usually enough to start a useful troubleshooting call.
Bottom Line
For system owners, 2026 is a year to pay attention to your plan, not your pride. Federal credit rules tightened after 2025, state and utility programs keep shifting, storage is becoming more common, and pricing can still move due to trade cases.
The solar industry is evolving fast and 2026 is the year to make sure your system keeps up. Whether you need a performance check, an inverter replacement, or solar panels removal & reinstall for a roof replacement, small proactive steps can protect years of savings ahead. SunQuest Solar specializes in maintaining and optimizing existing systems, helping homeowners across the Northeast get the most from every ray of sunlight. Don’t wait for hidden issues or incentive cutoffs, schedule your solar system tune-up with SunQuest Solar today, visit our website at gosunquestsolar.com, or give us a call at 860-256-4811 to get started.