A major shift is brewing in federal solar policy—and if you’re a homeowner thinking about going solar, it’s time to pay close attention.
On May 22, 2025, the U.S. House of Representatives passed a bill that could eliminate the Residential Clean Energy Credit—commonly known as the federal solar tax credit—by December 31, 2025. While the bill still needs to pass the Senate, it’s a clear sign that this popular incentive could disappear sooner than expected.
So, what does that mean for you? In short: you could lose thousands in solar savings if you wait too long… Homeowners: Don’t Miss the 2025 Solar Tax Credit Deadline!
A Quick Recap: What Is the Federal Solar Tax Credit?
The solar tax credit is one of the most valuable incentives for U.S. homeowners. It allows you to claim 30% of your total solar installation costs as a dollar-for-dollar credit on your federal income taxes. For example: If your solar system costs $21,000, you could claim $6,300 back at tax time.
To qualify, you must purchase your system with cash or a loan, and it must be installed on your primary or secondary residence. Importantly, you need to have taxable income to take full advantage of the credit.
What’s Changing—and Why It Matters
If the proposed legislation becomes law, the current 30% credit would be eliminated after December 31, 2025—seven years earlier than originally planned under the Inflation Reduction Act.
That means homeowners would need to have their solar system fully installed and operational by the end of 2025 to qualify.
Otherwise? You could miss out on thousands in savings and see your total cost rise by up to $8,500 or more, depending on system size and location.
If you’re considering solar, don’t wait. Here’s how to stay ahead of potential changes:
-
Start your project soon – Many systems can take several months from quote to installation.
-
Get on a solar installer’s schedule early – If demand surges, you may face delays.
-
Talk to a GHS Solar Advisors and tax professionals – Contact Green Home Systems to make sure you understand how the credit could impact your situation.
Homeowners: Don’t Miss the 2025 Solar Tax Credit Deadline
There’s Still Time, But the Window Is Closing: The 30% federal solar tax credit has been a game-changer for homeowners. But if Congress moves forward with this new legislation, your chance to claim it could disappear in less than a year.
Solar is still one of the smartest long-term investments you can make for your home, your utility bills, and the planet—but timing matters.
Start your solar journey today—and lock in your savings before the clock runs out.
