US residential solar installations projected to hit five-year low after tax credit elimination

Summary

The U.S. residential solar industry is facing a significant downturn after President Trump eliminated a key tax credit for homeowners to install solar panels. According to a BloombergNEF report, the U.S. is projected to add only 4.1 gigawatts of residential solar in 2026, a 15% decline from 2025 and the lowest level in five years. The sunsetting of a 30% tax break for homeowners is the primary cause, and the market is not expected to recover to 2023 record levels anytime in the next decade. This decline is also dragging down residential battery additions.