Why 2025 Is the Year to Go Solar: Don’t Miss Out on These Expiring Incentives

Don’t Miss Out on These Expiring Incentives

If you’ve been considering solar for your home, there’s never been a better time than right now. Thanks to powerful federal incentives—most notably the 30% Solar Investment Tax Credit—homeowners can significantly lower the cost of going solar. But these benefits won’t last forever. In fact, some are set to begin phasing out at the end of 2025.

Current Federal Incentives: What You Need to Know

The federal Solar Investment Tax Credit (ITC) currently allows homeowners to deduct 30% of the total cost of a solar energy system from their federal taxes. This includes:

• The cost of solar panels and equipment

• Installation and labor costs

• Battery storage systems

• Permitting and other associated fees

For a typical $20,000 system, this means a $6,000 tax credit—a substantial savings that immediately reduces the upfront investment required.

What Changes After 2025?

While the 30% credit is guaranteed through the end of 2025, it's not permanent. Under existing law:

• The credit drops to 26% in 2026

• Then falls to 22% in 2027

• And phases out completely for residential systems after 2034

To lock in the full 30% savings, your project must begin before December 31, 2025. Waiting could mean missing out on thousands in tax benefits.

Why It Pays to Act Now

Incentives aren’t the only reason to go solar sooner rather than later. Acting now also helps you:

Avoid Rising Costs

With inflation and increasing demand, the cost of materials, labor, and permits may go up over time. Delaying could mean paying more for the same system.

Beat the End-of-Year Rush

As the deadline approaches, more homeowners will move to claim the 30% credit. Installer availability could become limited, resulting in delays or higher pricing.

Start Saving Immediately

Every month you wait is another month of paying rising electric bills. The sooner you switch to solar, the sooner you begin realizing energy savings.

Don’t Overlook Local and State Programs

In addition to the federal tax credit, many states, municipalities, and utility providers offer their own incentives. These may include:

• Cash rebates

• Net metering programs

• Property tax exemptions

• Sales tax exemptions

In states like Florida, homeowners benefit from 100% property tax exemptions on the added value of their solar systems and favorable net metering laws that credit you for excess energy sent back to the grid.

The Bottom Line

Between now and the end of 2025, homeowners have a unique opportunity to take advantage of the full 30% federal tax credit for solar installation. Delaying your decision could mean higher costs and lower incentives.

Whether you’re looking to reduce your electric bill, increase your home’s value, or reduce your environmental impact, solar is a smart, forward-thinking investment. But timing is everything—and the clock is ticking.

Want to know how much you could save?

We offer free solar consultations and custom proposals tailored to your home and energy needs. Contact us today to get started.