Do you dream of breaking free from the shackles – and rising costs – of your utility company? Solar panels are a smart investment that can help you cut your energy bills and gain control over your electricity.
Experts even predict that solar panels can pay for themselves in just 7-10 years, thanks to the money they save households over time.
But while the potential savings are huge, the cost of installing solar panels is still a hurdle for many.
Thankfully, the 30% federal solar tax credit makes going solar much more accessible. For example, it makes it easier to secure financing or a loan, since lenders know a significant portion of the cost will be covered when the tax credit is applied.
The catch? This credit won’t be around for much longer. Keep reading to learn why it’s phasing out and how you can claim your discount before it’s too late.
What is the solar tax credit?
The solar tax credit, officially known as the Federal Investment Tax Credit (ITC), is a government incentive that helps make going solar more affordable. It lets you deduct 30% of the cost of installing solar panels from your federal taxes.
This takes care of a good portion of the overall cost, making the switch to green, energy-efficient solar power more accessible.
Here’s how it works:
- You purchase and install your solar panel system. (It must be fully installed and operational within the tax year.)
- You file your federal tax return for the year.
- You fill out IRS Form 5695 (Residential Energy Credits) and add the amount to your Form 1040.
- The tax credits then reduce the total amount of tax you owe.
What’s happening with the solar tax credit right now?
If you’ve been thinking about switching to solar energy – now’s the time to act if you don’t want to miss out on the perks of the solar tax credit!
Unfortunately, this credit is set to end after December 31, 2025, under the One Big Beautiful Bill (OBBB), signed by President Trump.
This bill significantly rolls back many clean energy tax incentives – including the residential solar tax credit. To get the full benefit, your solar system needs to be installed and up and running before the December deadline.
Will there be any extensions available?
Sadly, there won’t be any extensions available. If you wait until 2026, the 30% federal tax credit is gone for good.
In fact, the OBBB legislation has some strict rules that could make you ineligible even sooner. The bill’s provisions are complex, but the bottom line for homeowners is that your system must be fully installed by the end of this year to qualify.
Even if your project is already underway, there’s no grace period – you still need to have everything completed by December 31 to claim the credit.
What if the rules change?
Waiting for the rules to change is a gamble. The new legislation has already introduced new restrictions that could affect you even if the 30% credit isn’t completely gone.
For instance, there are new “domestic content” requirements. While the bill doesn’t directly affect the existing residential solar tax credit, it does impose new taxes and restrictions on solar projects that could raise your expenses.
Bottom line – the rules are only getting tougher. Waiting could make your system more expensive and leave you dealing with more complicated regulations.
How can I get my solar panels installed by the deadline?
You need a solar energy partner who understands these new regulations and can get your system up and running before the deadline hits. That means a team of solar panel suppliers and installers who don’t mess around – who jump on your project as soon as you reach out.
The Current Home team can offer this and more. Along with helping you secure the full 30% federal credit before it vanishes, we’ll make sure you:
- Gain energy independence: Going solar means locking in your power costs for decades. We’ll set you up with a system that makes you way less dependent on the utility company.
- Enjoy significant savings: That 30% tax credit is just the start. Our systems are built to last and keep cranking out power (and savings) for years to come.
Why Current Home Solar is the ideal choice for your solar panel solution
We’re proud to be your trusted partner for smarter, cleaner energy. With flexible financing and a wide range of products, we make it easy to find the perfect solar solution for your home. Here’s what we offer:
- Top-quality solar panels and installation: Every system is custom designed around your roof and budget, then professionally installed with maximum performance in mind.
- Backup battery systems: You’ll be able to store extra power from your panels to keep the lights on during outages for complete energy security.
- Roofing services: A strong roof helps maximize your solar investment and reduce utility costs. We offer roofing with or without solar installation.
Plus, we support a wide range of clients, covering:
- Southern California: Temecula, Murrieta, Winchester, Escondido, Perris, Fontan
- Florida (Central and South): Kissimmee, Tampa, Winter Garden, Fort Lauderdale, West Palm Beach, and Lakeland
Don’t wait until the deadline sneaks up. Act now and get your free quote from Current Home Solar today.
