30% Solar Tax Credit Ending?
Is the 30% Federal Solar Tax Credit Ending Early?
Yes, the 30% solar tax credit could end earlier than expected.
There’s a major change being proposed in Washington that could directly impact Central Valley homeowners thinking about going solar.
As part of the latest budget bill, the federal 30% tax credit for solar and battery storage—which helps homeowners save thousands—may be cut short. Right now, that credit is scheduled to expire at the end of 2025.
🔍 What is the 30% Solar Tax Credit?
And How Much Can You Save?
The federal solar tax credit (officially called the 25D credit) lets you deduct 30% of your solar or battery system costfrom your federal income taxes.
For example:
If your system costs $30,000, you could receive a $9,000 tax credit.
- ✅ Applies to purchased systems (cash or loan)
- 🚫 Leased systems or PPAs don’t qualify
Who Qualifies for the Credit?
- Homeowners who purchase a solar or battery system (cash or loan)
- New solar customers and existing customers who add a battery or panels
- Systems installed before the new deadline
Who Doesn't Qualify for the Credit?
- Customers who lease their systems
- Customers in PPA (Power Purchase Agreement) contracts
- Systems installed after the deadline
When Does the Tax Credit Expire Now?
If the bill passes this summer—as expected—the 30% tax credit would end 180 days after it’s signed into law. Based on timing, that puts the cutoff around January 2026.
To qualify, your system must be fully installed and inspected before the deadline—not just contracted.
Why You Shouldn't Wait
We understand that some homeowners may want to wait for confirmation, but here’s why that’s a risk:
- Solar projects take time—design, permitting, inspections, utility approvals
- Once the bill is signed, a market rush will flood the installation calendar
- Waiting too long could mean missing the deadline entirely
On average, it takes 8–12 weeks from contract to installation—and that’s without delays.
Is 2025 a Smart Time to Go Solar?
Absolutely. Here’s why:
- Equipment is still priced pre-tariff
- Utility rates are rising fast
- Interest rates may drop in the future, and solar loans can often be refinanced
- The 30% tax credit is available—but possibly not for long
Already Have Solar? You May Still Qualify
If you’ve already installed solar, you may still be eligible for the 30% credit if you:
- Add a backup battery system
- Expand your existing solar array
Even if you claimed the credit before, these upgrades can still qualify.
Bottom Line: DON'T WAIT
The 30% solar tax credit has helped thousands of Central Valley families take control of their energy bills—and it's about to disappear sooner than expected. If you’re planning to go solar or make system upgrades, now is the time to get started.
Other reasons:
- Material prices are steady—for now
- Utility rates keep rising
- The 30% tax credit is still available—but possibly not for long
- And yes, solar loans can be refinanced later if rates drop
