Your tax expert is right. The federal tax credit for homeowners who buy solar (the residential clean energy credit on Form 5695) ended after December 31, 2025. There is nothing for you to file. But that is not the whole story. A different federal credit still exists for businesses that own solar systems, and some solar programs pass part of that value to the homeowner as an upfront discount. Here is how that works, so you and your tax expert can look at it together.

Is my tax preparer right?

Yes, about the credit they are talking about. The homeowner credit, Section 25D, the one you would claim on your own return with Form 5695, ended. The IRS says it "is not available for any property placed in service after December 31, 2025."

So if you buy a system yourself and it is finished in 2026, there is nothing for you to claim. Your tax preparer is correct.

Then what credit is still around?

A different one. Section 48E is the business version of the solar credit. It is claimed by a company that owns a solar system, on IRS Form 3468, not by a homeowner. The IRS lists it as worth up to 30% of the investment, plus 10 more percentage points if the system is in an energy community.

That credit did not end in 2025. It also covers battery storage. It does have its own deadline: for solar projects that start construction after July 4, 2026, the system has to be in service by the end of 2027. Meeting that deadline is the system owner's job, not yours.

How does that help me?

Through a prepaid agreement with Maxwell Power. The company started eight years ago, in 2018, as HDM Capital, and is now known as Maxwell Power. Some paperwork may still show the old name.

As of October 20, 2026, the program's main investor had committed $1.8 billion to it: $250 million in 2024, $750 million on June 1, 2026, and $800 million on October 1, 2026, less than three weeks before I wrote this, per the company's October 2026 press release. That is a growing company earning its investor's trust. The company also says the program has saved customers an estimated $300 million, which is its own figure.

Here is how the agreement works:

1. Maxwell Power owns the system for the first six years, so Maxwell Power claims the business credit.
2. Maxwell Power passes it to you as a discount. You prepay for the power the system will make, and the discount comes off that price, up front.
3. You file nothing. No Form 5695, no carryforward, no waiting on a refund. Your tax preparer does nothing.
4. At year six, you can take ownership at fair market value, with your unused prepayment credited against the price.

On the proposal, the discount shows up on its own line: "Less: HDM Capital Prepayment (Conditional)." (The old name may still appear on that line.) "Conditional" means it depends on Maxwell Power approving and funding the project.

How big is the discount?

As of October 2026, from the Maxwell Power proposals I have run, it is close to 30% (about 28.5%) for a home in an energy community and closer to 22% outside one. These numbers can change, so treat them as a snapshot. Your own proposal shows your number.

One quiet advantage: the old homeowner credit was non-refundable, so it only helped if you owed enough federal tax to use it. A discount on the price is worth the same whether you owe the IRS a lot or nothing at all.

A simple example. Say the price before any credit or discount is $30,000. Last year, a homeowner paid the full $30,000, then claimed the 30% homeowner credit, $9,000, on their next tax return. That money came back only after they filed, and only if they owed enough federal tax to use it. This year, with a prepaid agreement, the discount comes off up front, so that same $30,000 system is a prepayment of roughly $22,000 to $24,000, depending on where you live and whether the system includes one or more batteries. These are round numbers to show how it works, not a quote. Your own proposal shows your price.

What should I know before signing?

• Maxwell Power guarantees production. The system is guaranteed to make at least 85% of its estimated output over the first six years, and Maxwell Power insures, monitors, and maintains it during that time.
• If you sell before year six, the buyer takes over the agreement. The power is already paid for, so there is no monthly bill for them. Maxwell Power charges a $250 transfer fee.
• No lien on your home. Maxwell Power files a UCC-1 on the equipment, not on the house.
• You stay on PG&E's solar billing plan (or your utility's) during the agreement.
• You can still buy the system outright with cash and own it from day one. You just will not get a federal credit for it, because that is the credit that ended.

What about rental properties and retirees?

The old homeowner credit only applied to a home you lived in. A house you rented out did not qualify for it. A landlord could try to claim the business version of the credit instead, but whether that helped depended on the owner's own tax situation, and many were advised it was not worth it. Retirees ran into a different problem: the homeowner credit only reduced taxes you owed, so with little or no federal tax bill, there was little or nothing to gain.

A prepaid agreement works differently. Maxwell Power requires that you own the home, not that you live in it. The discount comes off the price up front and does not depend on your tax return. So if you looked into solar before and your tax preparer said it would not help you, because it was a rental or because you did not owe enough tax, the answer may be different now. For a rental, it can also be worth asking whether your tenants want it, for example tenants who drive electric cars and would like to charge them with solar. Check your own proposal and talk with your tax preparer about anything specific to your situation.

Want to show this to your tax preparer?

Please do. The short version for them: the homeowner credit (25D, Form 5695) ended for systems placed in service after 2025. The discount here comes from the business credit (48E, Form 3468), claimed by the system owner, Maxwell Power. The homeowner claims nothing. The links at the top of this page go straight to the law and the IRS.

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This article is for general education. It is not tax, legal, or financial advice, and program terms can change after the date above.