IMPORTANT UPDATE ON THE SOLAR TAX CREDIT
The Federal Tax Reform Bill (H.R.1 – One Big Beautiful Bill) that the President signed into law on July 4, 2025 eliminates the 30% Federal Income Tax Credit on Residential Solar at the end of this year! The 30% Tax Credit on Commercial Solar now ends at the end of 2027 but installation must begin before July 4, 2026!
What Does This Mean for You?
We have seen a surge in demand since this bill was signed into law and we expect the demand to get even more intense as news of this tax credit’s elimination continues to spread. Additionally this surging demand is creating supply chain issues with solar equipment and again it’s only going to get worse as time goes on.
If you are a homeowner who’s been considering solar or a battery backup installation, you’ll need to act quickly in order to take advantage of the tax credit before it expires at the end of this year. Due to unprecedented demand along with the time required for engineering, permitting, utility approval, installation and commissioning, we highly recommend committing to a project very quickly to ensure you meet this deadline and to ensure scheduling availability, as we will be booked out through the end of the year very soon!
If you’re a business owner or commercial property owner you have a little bit more time but commercial solar and storage systems typically take a lot longer for permitting, utility approval and installation than residential systems, so time is still very short to get the ball rolling in order to begin your installation before July 4, 2026.
How Much Will You Save?
Currently, you will receive a 30% tax credit on your solar or battery backup project, which can significantly reduce your upfront costs. For example, a typical $25,000 home solar project will only cost you $17,500 after the tax credit. This credit will be applied when you file your 2025 Federal Tax Return.
Is This a Done Deal?
YES! The President signed this Bill (H.R.1 – One Big Beautiful Bill) into Law on July 4, 2025. This means there’s still a very brief window of time to complete your project before the tax credit expires.
What’s Covered by the Clean Energy Tax Credit?
The following systems are currently eligible for the credit:
- Solar Electric Property
- Qualified Battery Storage Systems
- Solar Water Heating Property
- Wind Energy Property
- Geothermal Heat Pump Property
How Long Has the Solar Tax Credit Been Around?
The Investment Tax Credit (ITC) has been supporting residential and commercial solar since 1978. Over the years, it has fluctuated between 10% and 30%, with the 30% credit currently in place thanks to the Inflation Reduction Act of 2022.
What About Alt E Wind & Solar?
Alt E Wind & Solar has been around for over 15 years (founded in 2010) and remains well-diversified across solar PV, batteries, and both commercial and residential projects. As a company, we have been through this tax credit reduction/expiration twice before! While the tax credit makes solar more accessible to more people, we strongly believe that installing solar on your home or commercial property still makes a tremendous amount of financial sense even without the tax credit. This is just a bump in the road for our industry and, as electric rates continue to increase year after year, solar will once again become the dominant source of power production AND provide our customers an ever increasing Return on Investment. As the leading solar installation company in Colorado and Wyoming, we’re committed to providing continuous support and service for many years to come, ensuring you’re in good hands long after your project is complete!
The Bottom Line
The Federal Tax Credit has helped countless homeowners and commercial property owners transition to clean, renewable energy. It’s one of the most effective ways to reduce pollution and combat climate change. Today’s solar technology is more efficient and affordable than ever, but unfortunately, the tax credit that makes it so accessible will be gone after 2025.
CLICK HERE for a free price quote before it’s too late to get the 30% tax credit!