This Could Be the Last Year for the Solar Tax Credit—Here’s What You Need to Know
If you’re thinking about installing solar panels, now is the time.
The GOP’s massive new bill that just passed the House would kill the 25D Residential Clean Energy Credit (aka the solar tax credit) if it becomes law.
The solar tax credit helps make solar power more affordable and accessible to everyday Americans. If it’s eliminated, solar panels will get a lot more expensive.
Keep reading to find out what’s happening and how you can claim the credit before it’s too late.
What Is the Solar Tax Credit?
The solar tax credit allows homeowners to reduce their federal income taxes by 30% of their solar installation costs, including batteries. That means you get 30% of your investment back as soon as you file your taxes for the year you install your solar panels. It reduces installation costs, speeding up your break-even point and increasing your return on investment.
What’s Changing with the Solar Tax Credit?
As of right now, the 30% solar tax credit is available for all residential solar installations completed before the end of 2032.
If Congress passes the Trump administration’s “Big, Beautiful Bill,” that timeline will go right out the window. The tax credit will be eliminated at the end of 2025, which means you can only claim it if you install solar panels before the end of this year.
Meanwhile, other incentives like net metering are facing similar attacks. That means now is the time to act if you’ve been thinking about solar. You’ll lock in money-saving incentives before they disappear while setting yourself up for decades of affordable electricity costs.
What Does This Mean For Homeowners Considering Solar?
There are a few things to keep in mind if you’re thinking about installing solar panels for your home. If the bill passes:
Solar panels will cost 30% more without the federal tax credit.
You have until the end of 2025 to claim the credit. But your system needs to be “placed in service” by the last day of the year to qualify. That means not just underway but installed, approved by your utility, and actively generating power.
There will be a rush to install solar panels. That means installer schedules, permitting timelines, and utility approvals could get backlogged. We strongly recommend starting now to get ahead of potential delays.
What Can You Do?
The solar tax credit is at risk, but it hasn’t been eliminated yet. If you want to help protect the tax credit and your path to energy freedom, we encourage you to contact your senator.
Tell them that you strongly oppose the elimination of the 25D Residential Clean Energy Credit. Tell them not to repeal tax credits that put clean, affordable energy in reach for millions of Americans.
You can find your senators here.
At Sustainergy Cooperative, we believe clean, affordable energy should be available to anyone who wants it. The solar tax credit helps make that dream possible. We encourage you to speak up for the tax credit and to start your solar installation soon so that you can take advantage of savings before they’re gone.
