Blog - DealMachine for Real Estate Investing

Selling Solar in 2026 Without the 30% Tax Credit

Written by Emmanuel Alonzo | Feb 23, 2026 12:30:00 PM

Policy shifted. The clock ran out. As of December 31, 2025, the 30% federal residential solar tax credit for homeowner-owned systems ended for new purchases.

The reps who win in 2026 won’t be the ones mourning the old incentive. They’ll be the ones who can still put 2–3 new installs a week on the board because they built a system, not a streak.

This blog builds on the insights from the Solar Masterclass and updates it for the post-credit world:

  • What actually happened to the 30% solar tax credit
  • Which states still pencil without it
  • How to use remote prospecting + cheap data to fill your pipeline
  • Why discovery calls quietly double your show and close rate
  • The KPIs and hiring moves that make a small solar team dangerous

What actually happened to the 30% solar tax credit?

Originally, the Inflation Reduction Act set the 30% Residential Clean Energy Credit (Section 25D) to run through 2032 for qualifying installations. 

In 2025, Congress changed course.

On July 4, 2025, the “One Big Beautiful Bill” (OBBB) was signed into law. Among many other things, it terminated the 30% residential solar tax credit for homeowner-owned systems at the end of 2025. 

The IRS FAQs now spell it out plainly:

  • Section 25D – Residential clean energy credit: “The credit will not be allowed for any expenditures made after December 31, 2025.” 

Practically, that means:

  • If a homeowner’s system was installed and paid for by Dec 31, 2025, they can still claim the 30% credit when they file taxes.

  • If they start a new homeowner-owned system in 2026, there is no federal 30% credit under 25D.

  • Certain third-party-owned systems (leases/PPAs) can still tap 48E credits through 2027, with the tax benefit going to the system owner, who may pass it through in pricing. 

 Your market, your pricing, and your pitch have to assume no 30% residential credit going forward.

The people most exposed in 2026 are the ones who built their whole income on:

  • One big $10–15k commission each quarter

  • Hoping nothing goes wrong with the roof, main panel, lender, or installer

The operator mindset in 2026 is different:

  • “How do I keep 10+ installs a month coming in without leaning on the tax credit crutch?”

  • “Which markets still work on pure bill math?”

  • “What needs to change in my system, not my stress level?”

If you build a machine that sells 20+ accounts a month through a process, OBBB is noise in the background, not the thing that decides if you eat.

Which states still make sense for residential solar sales?

This part is simple: electricity prices drive your opportunity more than whatever is happening on C-SPAN.

High-rate states where solar still pencils, even if the credit tightens:

  • California
  • Hawaii
  • New York
  • Massachusetts
  • Connecticut
  • New Hampshire

You’re often looking at 30¢/kWh or more, with parts of California in the mid-30s, 40s, or even 50s. That bill pressure creates a strong case for solar, as long as you don’t structure the deal poorly.

Lower-rate states with tighter math:

  • Texas
  • Arizona
  • Other markets around 15¢/kWh

You can still close in those markets, but you’re:

  • Working with a smaller pool of qualified homes
  • More exposed if the tax credit window shortens
  • Needing cleaner roofs, higher usage, or stronger add-ons to make it work

The important point most people overlook: you don’t have to live in a high-rate state. You can sell into high-rate states. That’s where remote prospecting and call centers come in.

How do you sell solar remotely with a small call center?

A decade ago, building your own solar call center meant writing big checks for data.

Emmanuel’s early data costs looked like this:

  • $0.02 per record for name + address
  • $0.13 per record for skip-traced phone numbers
  • 100,000 records ≈ $15,000

That was a real barrier to entry. If you weren’t already closing 20–30 deals a month, it was hard to justify.

Now the math is very different. You can pull tens of thousands of homeowner data for a few hundred dollars. Emmanuel’s pulling around 30,000 records for roughly $200 using built-in homeowner data. That’s less than half a cent per record in the right plan tier.

In practice, that means remote prospecting is no longer reserved for big operators. A small team in one city can call into California, New England, Hawaii, New York, and other high-rate markets. You can test new markets without spending $5,000+ per list.

At a high level, think of it like this:

  • Instead of doors, you work off phone numbers.
  • Instead of canvassers, you have callers.

The edge isn’t “we have data”; the edge is:

  • You call the right markets
  • With affordable lists
  • And better training + leadership than the next shop

If you’re still only selling where you live, and that state has cheap power, you’re making the work harder than it needs to be.

What does a real solar call center machine actually look like?

Here are Emmanuel’s actual numbers so this stays concrete.

Team structure:

  • 5 callers
  • 2 closers

One month of performance:

  • 25,000 total outbound calls
  • About 250 live conversations per caller per day using a multi-line dialer
  • 38 sits
  • 24 closed deals

The following month: nearly identical results.

Costs (approximate):

  • Data: a few hundred dollars for tens of thousands of records
  • Callers: $5/hour each
  • Per-sit bonus: $150
  • Closers: $1,000–$1,500 per deal (fed with high-quality sits)

Economics:

  • Rough cost per lead ≈ $13 (on a sits basis)
  • Each caller averages about one closed deal per week
  • Two closers each close 10–12 deals

This setup doesn’t depend on a perfect pitch. It depends on:

  • High-rate markets
  • Predictable data flow
  • A comp plan tuned to sits and closes, not fake appointments
  • A structure that includes a real discovery call

That discovery call is the part most teams skip.

Why are discovery calls a quiet advantage for solar close rates?

Most teams run this process:

  1. Setter books the appointment.
  2. Automated text reminders go out.
  3. Closer shows up and hopes the homeowner remembered.

Then they blame no-shows and “bad leads.”

Emmanuel’s team adds one extra step that changes outcomes:

3-call structure that works:

On the discovery call, you:

  • Tell the rate story clearly:
    • An aging grid that needs expensive maintenance
    • State-level renewable mandates that require new generation
    • Investor-owned utilities needing higher returns → rate hikes and new fees
    • Sell the problem of staying with the utility for the next 10–20 years.
  • Ask what they’ve heard about solar—good and bad.
  • Get the power bill on the call:
    • “Do you do online billing or paper?”
    • If online, have them log in on speaker, screenshot the bill, and text it while you wait.
  • Confirm who will be at the appointment and what decision they can expect to make.

Behavior works in your favor here. People are more likely to follow through on something they’ve already invested time in.

By the time the closer shows up, the homeowner has already:

  • Admitted there’s a problem
  • Shared their actual usage
  • Spent 10–15 minutes in a serious conversation with your team

On the other side, if they:

  • Won’t answer the discovery call
  • Won’t send a bill
  • Avoid the follow-up time they agreed to

That’s useful information. It tells you:

  • This is a weak appointment
  • Your best evening slot is better used on someone else

The discovery call isn’t just admin. It’s where you:

  • Sell the problem
  • Reduce fear
  • Decide whether they should get a closer’s time

How should you hire and pay solar callers in 2026?

There’s a lot of conversation about “which country is best.” That’s not the main driver of results.

What teams are seeing work well right now:

Strong sources of callers:

Latin America, especially Mexico, because:

  • Many callers are bilingual
  • A lot grew up in the U.S. and moved back
  • They understand U.S. pace, tone, and culture

You can find these reps by:

  • Joining Facebook groups focused on remote work in Mexico
  • Posting clear roles: pay, schedule, expectations, and what “success” looks like

Effective operators hire for coachability more than “years in solar” and prefer to train from scratch rather than unteach bad habits. They pay hourly, so callers aren’t desperate or spammy, and they pay per sit, not per “set,” so quality actually matters.

Set = an appointment booked. Sit = the appointment that actually happens (the closer meets with the homeowner, in-person or on Zoom).

Managers:

  • Listen to recordings
  • Join live calls
  • Update scripts based on what real homeowners are saying this week

On scripting, you want to acknowledge common objections instead of pretending they don’t exist.

Example opener in a saturated market:

“Hey, I’ll be quick. You’ve probably had a lot of people pitch you on solar already, right?”

Once they agree, you’ve:

  • Acknowledged their reality
  • Reduced the “you’re the 10th person this month” objection
  • Taken control of the conversation

Then you explain why you’re actually calling and why their utility’s rate path makes it worth checking if they qualify now.

What KPIs should every solar sales leader track now that incentives shifted?

There’s no universal “good” close rate, especially now that markets behave differently without a homeowner credit. Skill, state, utility, and process all matter.

But your core numbers in 2026 are the same:

  • Calls per caller
  • Live conversations per caller per day
  • Appointments set
  • Sits
  • Closes
  • Cost per lead
  • Cost per sit
  • Deals per caller per week

A solid target once you’re dialed in:

~1 closed deal per caller per week

If you’re below that, walk the chain:

  • Markets: are you in high-rate states or trying to brute-force low-rate ones?
  • Process: are you doing real discovery calls or just “confirming time and address”?
  • Comp: are you paying for sets instead of sits?
  • Coaching: are you actually listening to calls, or just looking at dashboards?

In a world where the 30% homeowner credit is gone, the teams who treat this like an actual business, with real KPIs and continuous improvement, will beat the ones waiting for the “good old days” to return.

Action plan: how to sell solar in a shifting policy and price environment

If you want a solar business that can handle policy swings instead of being controlled by them, here’s a straightforward path forward:

Pick two high-rate states and commit.

Build your math around states where electric rates are already painful.

Build a small, sharp remote team.

Think 3–5 callers and 1–2 closers, not 20 uncoordinated setters.

Lock in the three-call structure.

Set → discovery → close. No discovery and no bill means they don’t get a prime appointment slot.

Pay for real outcomes.

Hourly + per sit for callers. Strong per-deal pay for closers. No rewards for ghost appointments.

Review numbers weekly and adjust one lever at a time.

Fix discovery if sits are weak. Fix training and proposals if close rate is weak. Fix targeting if cost per sit is high.

Policy will keep changing. Power costs will keep rising. The question is whether you build a machine that can work through that, or you react to every new headline.

Want the full solar sales system laid out step-by-step?

If you don’t want to piece this together on your own, join us in the Solar Masterclass.

Inside the masterclass, we go deeper into:

  • Which states and utilities to prioritize for remote solar sales
  • How to structure your call center team, compensation, and scripts
  • Word-for-word discovery call frameworks that lift show and close rates
  • The dashboards and KPIs you need to run your solar business with a clear operating system

The goal is that you leave with a concrete playbook to keep adding 2–3 new solar customers a week, even as the 30% tax credit and financing landscape evolve.