Congress Killed the Solar Tax Credit — Here’s How to Claim It Before It’s Gone
On July 4th, 2025, President Trump signed the “One Big Beautiful Bill Act” (OBBBA) into law. The new law is a death sentence to clean energy incentives. It eliminates key drivers of renewable energy adoption in the United States, including the 30% federal tax credit for residential solar panels and battery storage. The tax credit is now set to expire at the end of 2025—seven years ahead of schedule.
This is a massive blow to Americans hoping to cut energy costs and protect themselves from rising utility rates.
There’s still time to claim the credit, but the window is closing fast. To qualify, your solar installation must be completed by December 31, 2025. That’s only a few months away. And when you factor in the time needed for permitting, approvals, and inspections, the window gets even smaller.
If you’re interested in rooftop solar panels, keep reading. We explain what’s changing and what you need to do to claim the 30% tax credit before it’s too late.
What’s Changing with the Solar Tax Credit?
The only thing that’s changing with the solar tax credit is the timeline. The 30% tax credit, which was set to run through 2032, will now be eliminated at the end of 2025. Solar installation completed before the last day of the year can still claim it, but any installations completed in 2026 and beyond will not qualify.
If you complete your installation in time, you can claim a federal tax credit worth 30% of your total installation costs for solar panels and battery storage. You’ll get your tax benefit when you file your taxes for 2025, allowing you to recover almost a third of your installation costs just a few months after you install your solar panels. That makes solar significantly more affordable and helps you break even on your investment faster.
How to Claim the Solar Tax Credit Before It’s Gone
If you want to claim the solar tax credit, you need to get started right away. Here’s how:
1. Schedule a Solar Assessment As Soon As Possible
The first step to going solar is a free assessment. We’ll use this opportunity to learn more about your home, your electricity usage, and your solar goals. From there, we’ll design a custom system tailored to your home and needs.
At Sustainergy Cooperative, we’re committed to helping as many homeowners as possible take advantage of the solar tax credit before it’s too late, but our schedule is filling up. We encourage you to book your assessment soon to secure your spot.
2. Finish Your Installation Before the End of 2025
To be eligible for the solar tax credit, you need to complete your installation before the end of the year. We’re efficient, but some things, like permitting approvals, are out of our hands. The sooner you get started, the more time you have to make sure everything is wrapped up before the deadline.
3. Complete IRS Form 5695 & File it With Your 2025 Taxes
Claiming your credit is the easy part. All you have to do is complete one extra tax form (Form 5695) and file it with your 2025 taxes.
Why Act Fast?
Energy costs are already rising, and the OBBBA is expected to make things worse.
Before this law passed, the US was on track to add huge amounts of energy to the grid through clean energy growth. But the OBBBA strips away the tax credits that clean energy developers were relying on to build those projects. Without tax incentives, many large-scale solar and wind projects are expected to be delayed or canceled.
That means less energy production, higher prices, and a more unstable grid, just as electricity demand is hitting record highs.
With rooftop solar, you can avoid rising costs and benefit from:
Lower electricity bills
Protection against rising rates
Less reliance on an unstable electric grid
Smaller carbon footprint
These are long-term benefits, and they’ll still be valuable if you go solar after the tax credit ends. But you’ll end up spending a lot more on your installation than you needed to. If you’ve been thinking about going solar, now is the time to start your installation and save 30% with the solar tax credit before it’s gone.
