The Solar Panel Tax Credit Could Disappear, Go Solar Now

If you’ve been thinking about going solar, the time to act is now. A proposed change in federal policy could soon eliminate the 30% solar tax credit, potentially costing homeowners thousands of dollars in lost savings.

In this blog, we break down what’s happening, what it means for you, and why installing solar before the end of 2025 could be one of the smartest financial moves you make.

What Is the Solar Tax Credit?

The Federal Solar Investment Tax Credit (ITC)—known under Section 25D—currently gives homeowners a 30% tax credit for the cost of installing a solar energy system. That means if you install a $20,000 system, you could claim $6,000 back on your federal taxes.

This incentive has helped millions of Americans reduce their energy bills, increase their home value, and take control of their power supply—all while saving big.

What’s Changing?

A recent version of the U.S. House budget reconciliation bill proposes to repeal the 25D Residential Clean Energy Credit by the end of 2025—with no phase-out period.

Here’s what that means for you:

• If you install solar after December 31, 2025, you may no longer qualify for the 30% federal tax credit.
• The same system that costs you $14,000 after the tax credit today could cost you the full $20,000 or more in just a year and a half.
• The savings you lose could be in the range of $6,000–$10,000, depending on system size and energy needs.

Why Waiting Could Cost You

The repeal doesn’t just make solar more expensive—it also affects how fast you see returns:

• Your break-even period (ROI) could increase by 3–5 years.
• Monthly savings might be less noticeable without the upfront help.
• Home values may rise slower, as solar becomes a harder sell without the tax break.

And don’t forget: as more people rush to go solar before the repeal, demand will surge, potentially driving up equipment and installation costs.

Solar Still Makes Sense—But Now It’s a No-Brainer

Even without incentives, solar offers:

• Protection from rising utility rates
• Long-term savings
• Increased home resale value
• Clean, renewable energy for your household

But with the tax credit still in place, you’re getting all of that—plus a 30% discount covered by the federal government.

Why This Matters More Than Ever

To qualify for the credit, your system needs to be installed and activated by the end of 2025. That means:

• You’ll need to act well in advance to account for utility approvals, permitting, and installation timelines.
• Planning now ensures you don’t miss out on thousands of dollars in savings.

Ready to Take the Next Step?

US Power is here to help you get the most out of your solar investment. We’ll walk you through every step—from evaluation to installation—and help you claim your tax credit while it's still available.

Get Started Today:

• 🏠 Free Solar Evaluation – Find out how much you can save.
• 💰 $0 Down Options – Flexible financing to make going solar easy.
• 📅 Priority Installation Booking – Beat the 2025 deadline.

👉 Contact US Power today for your free quote or call us at (818) 650-8010

Let us help you secure your energy savings—before the tax credit disappears.

‍

Frequently Asked Questions: Solar Tax Credit Edition

Q: What exactly is the solar tax credit?
A: It’s a federal program (Section 25D) that lets homeowners deduct 30% of their solar installation costs from their federal income taxes.

Q: How long do I have to qualify?
A: Under current proposals, the credit ends for homeowners on December 31, 2025. Your system must be installed and operational by that date.

Q: How much can I save?
A: On a typical $20,000 system, you could save around $6,000 with the credit. The larger your system, the more you save.

Q: What happens if I wait until 2026?
A: If the repeal passes, you’ll no longer be eligible for the 30% federal credit, making solar significantly more expensive.

Q: Can I still go solar with no money down?
A: Absolutely. US Power offers $0 down financing options to help homeowners go solar with no upfront cost.

Q: Does solar still make sense without the credit?
A: Yes, but the financial benefits are stronger when you take advantage of the tax credit. Going solar now gives you the best return on investment.