Considering Solar in 2025? Know These 3 Impacts of the “One Big Beautiful Bill”
Many homeowners are considering going solar now that the House of Representatives passed the “One Big Beautiful Bill,” which calls for terminating the 30% federal solar tax credit at the end of 2025. As of June, this bill is still being debated in the Senate, leaving homeowners with questions about how it will impact their projects.
Based on the questions our Energy Advisors have been asked, we’ve put together this guide as to what homeowners need to know about going solar in 2025 with the tax credit potentially going away.
Timing – How Long Does It Take to Install Solar Panels?
Timing is one of the most important elements to securing the solar tax credit in 2025. The bill passed by the House in May states that residential solar and/or battery projects must be “placed in service” by December 31, 2025 to be eligible for the Section 25D Residential Clean Energy Credit. That means your project needs to be installed by December 31 to be eligible.
The average residential solar project typically takes 90 days from contract signing to installation, but these times can vary widely based on where you are in the country. Some locations, like South Florida and Albuquerque, can run 6 months due to challenging codes and local permitting requirements. This will likely be exacerbated by a rush of homeowners looking to go solar and have their project placed in service by the end of the year.
Even in markets with faster installation cycles, mainly due to less restrictive permitting requirements, where projects can normally be installed in 4-6 weeks, the team is starting to see installers revise their timelines to 6-8 weeks. While this is plenty of time to get a project completed by the end of the year, we’re forecasting that timelines will continue to extend.
The Solar.com team is actively monitoring our qualified installation partners’ backlogs to help ensure there’s sufficient bandwidth to meet project deadlines.
Component Selection – Installing Equipment From “Safe” Suppliers
The House Bill has very restrictive language around components sourced from Chinese-owned, affiliated, or influenced companies. While this has a phase-in element, homeowners should be mindful of this risk as it’s likely these companies will exit the US market, and it will be challenging to receive warranty support.
This means the industry is moving towards “safe” suppliers, as is the Solar.com team, and there could very well be a shortage of this product between now and the end of the year, which puts projects that wait at higher risk of missing the December 31 installation deadline.
Pricing Impacts – How the “One Big Beautiful Bill” Could Impact Residential Solar Prices
As of June, the average price quoted on Solar.com is only slightly higher than six months ago, and these price changes are mainly attributable to tariffs (even domestic producers must import components). This means that installation partners are not yet pricing a premium on an end-of-year surge. Looking forward, it’s safe to expect prices to rise later in the year as demand outpaces supply—especially once the “One Big Beautiful Bill” is signed into law and more homeowners push for installations before the end of the year.
The Bottom Line
Homeowners who install solar and/or battery storage in 2025 will likely be the last to qualify for a 30% federal tax credit. And as this bill advances through Washington D.C., so will demand to get projects placed in service by the December 31 deadline.
Now is absolutely the best time to go solar and lock in your maximum savings potential, as waiting for final passage of the “One Big Beautiful Bill” can expose your project to longer installation timelines, limited equipment choices, higher prices, and missing out on tax credit eligibility altogether.
Start today on Solar.com to put your project on track. Compare multiple quotes from reputable local installers with the guidance of an unbiased Energy Advisor.
