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When is too late to go solar and get the tax credit

Trump’s Solar Tax Credit Fallout: When Is It Too Late to Go Solar in 2025?

By Uncategorized No Comments

With the passage of the “One Big Beautiful Bill” (OBBB), the Consumer solar tax credit ends at midnight on New Year’s Eve 2025. This means that systems must have “expenditures made” before this time in order to qualify for the 30% tax credit. This has many homeowners asking whether it’s too late to go solar and when is the latest they can start their projects?

Solar.com’s One Big Beautiful Bill Resource Center:

 

Deadline to Start Projects that Qualify for a 30% Tax Credit

There is no hard and fast rule as to when homeowners need to start their project in order to ensure a high probability that they meet the definition of “Expenditure Made” before the tax credit expires at the end of the year. In a normal market, the typical cycle from contract to installation can take around 3 months to complete. This time period accounts for site visits, engineered drawings, and permits to be pulled. 

However, the time between contract and installation can vary by market. In some areas, installations can happen within a month of the contract being signed, and in other locations it’s typical to take up to six months. The big difference between these markets is usually due to factors outside the control of the installation party. Some utilities and AHJs (Authorities Having Jurisdiction) can be very slow to turn permits and approvals. Jurisdictions that allow for electronic submittal of permits, mainly through the SolarApp program, are typically much faster.

In the second half of 2025, consumers must also consider the installer’s capacity, as there’s been an understandable rush of homeowners trying to get solar installed before the end of the year. 

The Solar.com Approach

Solar.com, as a platform, is unique in that our Energy Advisors work to source multiple quotes from qualified installers, and we’re actively monitoring their backlogs as well as area delays related to permitting. There are some areas where we’re already advising homeowners that there is a risk their project will not be installed before the end of the year. In the upcoming days and weeks, we’re expecting those areas to grow. And in some areas, there is only a single installer left with capacity for installation. 

While solar.com does not perform installations, the team remains actively involved with the oversight of your project and has strong relations with our qualified installer network to help prioritize our projects. 

 

 

Questions You Should Ask When Going Solar in Late 2025

Whether working with solar.com or another party, going solar is an investment and homeowners should not feel pressured to make a decision they aren’t comfortable with. Sales reps who misrepresent deadlines or the situation should be instantly disqualified from your consideration, as this is an early warning sign as to how the rest of the project might go. Do not pay in full for a project at contract signing, especially if a rep tells you this will “lock in” your tax credit eligibility. 

Here are some questions to ask before signing a solar contract in 2025:

  • How many other projects are in front of yours in line to get installed?
  • What is the installer’s current turnaround time for installations?
  • What is the cancellation policy if the project can’t be installed before the end of the year?
  • Can the installation company convert the project to a Third-Party Owned arrangement, such as a lease or PPA, that retains 48E tax credit eligibility through 2027?

Defining the “Expenditures Made” for the Solar Tax Credit

As we wrote in our Frequently Asked Questions about the OBBB, the final bill language calls for projects to have “expenditures made” by the end of the year. Tax lawyers and accountants we’ve spoken with have all universally agreed that this means, at minimum, mechanical completion (also known as installation) must be completed before the end of the year. 

However, if you’re still waiting for the final permit sign-off or interconnection/Permission to Operate from your utility company, you’re likely okay. Please note that this is not tax advice and we recommend consulting your own tax advisor for their interpretation of the rules and your individual tax situation. 

 

 

2025 Solar Trade Case & Residential Solar

New Solar Trade Case Just Dropped: What it Means for Residential Solar

By Best Solar Panels for Homes in 2025, Solar Panels for Home No Comments

Coming off the heels of the signing of the One Big Beautiful Bill, a consortium of companies led by Q Cells and First Solar has filed a new trade case, alleging that exports from Indonesia, Laos, and India are being dumped and unfairly sold in the US market. While rumors of the case have been rampant within the solar industry, the timing is interesting and begs important questions to be asked. 

 

 

What the new solar trade case means for US Solar

The solar industry has been dealing with trade cases for well over a decade and has always found a way to adapt and grow in the face of the uncertainty and price pressures these cases represent. This new filing is unique for two specific reasons.

Historically, the trade cases have been aimed at limiting market access from Chinese-owned and operated companies and reducing damage to the US market. The rapid rise of manufacturing in Indonesia and Laos after the last trade case, involving Cambodia, Malaysia, Thailand, and Vietnam (“CMTV”), was mainly from Chinese-affiliated companies. In fact, much of the new capacity was actually relocated from the other four Southeast Asian countries. The last case saw prohibitively high tariff rates for most areas under the CMTV countries, as the US Government was able to consider “trans-national subsidization” or, put more simply, how the Chinese Government can subsidize manufacturing in third locations. While most industry observers felt the Indonesia and Laos trade cases were an inevitability, given the fact pattern that emerged from the CMTV case, a lot of this capacity has been serving US module manufacturers. 

India’s Inclusion in the Trade Case

With the inclusion of India in the trade case, solar trade cases have entered a new dimension. There are no Chinese companies operating in India, and India is a far greater trade ally with the US than India. Blocking module manufacturers from a non-Chinese safe haven market to feed their factories will undoubtedly create conflict between US manufacturers, which have historically been aligned in confronting the trade abuses by Chinese companies. While the solar.com team doesn’t see a lot of quotes using modules from Indian companies, it’s hard to say how strong the AD/CVD case will be against the Indian companies.

So why file a case against them?

The Timing of this Trade Case Harms US Manufacturers

As part of the One Big Beautiful Bill, companies that commence construction within 1 year of the bill being signed have up to 4 years to place that project in service. Based on the timing of the AD/CVD case filing, there will now be high risk in companies sourcing cells and modules from these companies, as well as for the importer of record on tariff risk. Whether or not there’s merit to the case, this seems to be a small number of module manufacturers weaponizing US trade rules to harm the market for their self-benefit.

Smart or shady? That probably depends on your viewpoint. 

What Homeowners Should Consider When Going Solar with the New Case

Homeowners rushing to go solar before the end of the year will not need to worry too much about the impact of this case. The biggest impact will be on timing. Some companies might slow down/stop importing products mainly from Indonesia and Laos to avoid duties. Once the Preliminary Determination rates are set, homeowners should continue their due diligence on whether the company supplying the technology for their project can stay in the market long term. This will further compress availability during the busiest period for installations. 

Solar.com has historically recommended panels from Q Cells, REC, and Silfab, which all seemingly have little to no exposure to this new case (although some people might be opposed to Q Cells due to their trade aggressions). Using one of these panels, along with starting the project as soon as possible, will help ensure that the project will reach “expenditure incurred” (mechanically complete) by the end of the year.