{"id":12079,"date":"2025-05-27T22:40:49","date_gmt":"2025-05-27T22:40:49","guid":{"rendered":"https:\/\/www.solar.com\/learn\/?p=12079"},"modified":"2025-07-03T20:26:45","modified_gmt":"2025-07-03T20:26:45","slug":"whats-next-for-the-residential-clean-energy-tax-credit-and-what-can-solar-proponenets-do","status":"publish","type":"post","link":"https:\/\/www.solar.com\/learn\/whats-next-for-the-residential-clean-energy-tax-credit-and-what-can-solar-proponenets-do\/","title":{"rendered":"What\u2019s Next for the Residential Clean Energy Tax Credit, and What Can Solar Proponenets Do?"},"content":{"rendered":"<p><strong>July 3 Update:\u00a0<\/strong>Congress has officially passed the &#8220;One Big Beautiful Bill&#8221; and an early termination of the 25D solar tax credit at the end of 2025. Homeowners will need to have their solar and\/or battery systems\u00a0<em>installed\u00a0<\/em>by December 31, 2025 to qualify for this tax credit before it&#8217;s gone.<\/p>\n<p><strong>June 30 update:\u00a0<\/strong>The <a href=\"https:\/\/www.solar.com\/learn\/senate-releases-updated-one-big-beautiful-bill-text-what-it-means-for-solar\/\" target=\"_blank\" rel=\"noopener\">Senate released its latest version<\/a> of the &#8220;One Big Beautiful Bill&#8221; featuring a December 31, 2025 termination date for the 25D solar tax credit claimed by homeowners. If passed as written, homeowners will need to have their systems installed before the end of the year to claim this credit before it is gone.<\/p>\n<p><span style=\"font-weight: 400;\">In May<\/span><span style=\"font-weight: 400;\">, <\/span><a href=\"http:\/\/solar.com\"><span style=\"font-weight: 400;\">solar.com<\/span><\/a><span style=\"font-weight: 400;\"> reported that the House passed a Reconciliation Bill that calls for the <\/span><a href=\"https:\/\/www.solar.com\/learn\/trump-and-the-fate-of-the-30-solar-tax-credit\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">elimination of the Residential Clean Energy Tax Credit<\/span><\/a><span style=\"font-weight: 400;\"> (the 30% solar tax credit) effective December 31, 2025. <\/span><span style=\"font-weight: 400;\">If signed into law as written, homeowners who would like to be eligible for the 30% tax credit would need their solar and\/or battery systems \u201cplaced in service\u201d (installed and passed inspection) by midnight on New Year&#8217;s Eve. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Given the longer lead times for residential construction, homeowners should start their projects quickly to allow sufficient time to reach the &#8220;placed in service&#8221; milestone by this deadline.<\/span><\/p>\n<p>&nbsp;<\/p>\n<gs-injectable background = 'true' border='true' primary_color = '#8b72d3' secondary_color='#f98d7e' utm_campaign = 'get_started_injectable' utm_medium='whats next for ITC' content_texts = 'true' upper_text='Compare multiple quotes from' upper_text_span = 'vetted installers' lower_text='Claim the 30% solar tax credit' lower_text_span = 'before it is gone' get_started_text='Get Solar Quotes' only_community_solar='false'><\/gs-injectable>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Previous versions of this bill included an elimination of the 48E tax credit for <em>leased<\/em> solar arrays, which would have close the \u201cloophole\u201d in the original House proposal that allowed homeowners to lease a solar array and indirectly receive the benefit of the tax credit. <\/span><span style=\"font-weight: 400;\"><strong>This has since been removed by the Senate and the 48E tax credit for residential leases and PPAs is likely to remain available for several more years.<\/strong><\/span><\/p>\n<p>The Reconciliation Bill is currently with the Senate, where a final vote is expected before July 4 before going to the President&#8217;s desk for signature.<\/p>\n<p><iframe loading=\"lazy\" title=\"Is The Solar Tax Credit Going Away in 2025?\" width=\"1080\" height=\"608\" src=\"https:\/\/www.youtube.com\/embed\/BzZB5xMxhUg?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<h2><b>What You Can Do to Support Solar Tax Credits<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Whether you\u2019re a homeowner or solar professional, today is the day to get involved. It\u2019s important to let your Elected Officials know that the solar tax credits are important. The easiest thing you can do is visit <\/span><a href=\"http:\/\/save25d.org\"><span style=\"font-weight: 400;\">save25d.org<\/span><\/a><span style=\"font-weight: 400;\"> and use the form to send an automated email to your elected officials.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A more powerful action is to attend town hall events and meetings in your district and let your voice be heard. Encourage your friends and neighbors to join, too.<\/span><\/p>\n<h3><b>Key Messages<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Why should Washington care about residential solar?\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Jobs:<\/strong> The solar industry now employs nearly 300,000 people, and residential solar accounts for a significant percentage of those jobs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Energy choice and energy dominance:<\/strong> Consumers benefit from a choice in how they source their electricity. And when neighbors go solar, this benefits the entire community by reducing the utility\u2019s transmission and distribution costs for all ratepayers.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Supports US manufacturing:<\/strong> Significant investments have been made to reshore the US solar industry. By significantly reducing demand, this supply is endangered.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Residential solar is broadly supported by Americans of every political affiliation and has historically been bipartisan. The <a href=\"https:\/\/www.solar.com\/learn\/trump-and-the-fate-of-the-30-solar-tax-credit\/\" target=\"_blank\" rel=\"noopener\">current versions of the tax credits<\/a> were first passed by George W Bush and have been extended and supported by every subsequent administration, including during Trump\u2019s first term.\u00a0<\/span><\/p>\n<h2><b>Can residential solar exist without tax credits?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Yes, it can and it should. But the drastic changes proposed in the House bill leave very little time for the industry and consumers to adapt to the new reality\u2014especially as the industry faces increased costs due to tariff and supply chain uncertainty, as well as high interest rates. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">A less disruptive solution? Phasing out tax credits beginning in a few years will allow the industry to adjust and thrive without the requirement for government support, while avoiding the widespread job losses and unnecessary threat to US solar manufacturing.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>July 3 Update:\u00a0Congress has officially passed the &#8220;One Big Beautiful Bill&#8221; and an early termination of the 25D solar tax credit at the end of 2025. Homeowners will need to&#8230;<\/p>\n","protected":false},"author":51,"featured_media":12083,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":""},"categories":[89,6],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.5 (Yoast SEO v19.10) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What\u2019s Next for the Residential Clean Energy Tax Credit, and What Can Solar Proponenets Do? | Solar.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.solar.com\/learn\/whats-next-for-the-residential-clean-energy-tax-credit-and-what-can-solar-proponenets-do\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What\u2019s Next for the Residential Clean Energy Tax Credit, and What Can Solar Proponenets Do?\" \/>\n<meta property=\"og:description\" content=\"July 3 Update:\u00a0Congress has officially passed the &#8220;One Big Beautiful Bill&#8221; and an early termination of the 25D solar tax credit at the end of 2025. 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He's been published by the Associated Press, Yahoo! Finance, MarketWatch, Home.com, Emeraldology.com and many other digital and print outlets. He's also been cited as a solar expert in The Mortage Reports Sam has a BA in Communication with an Emphasis in Journalism from the University of North Dakota and was named 425 Magazine's \\\"Top 30 Under 30 Professionals\\\" in 2020 while running an sustainable e-commerce startup. Based just outside of Seattle, WA, his 4.5 kW solar system provides enough power for his wife, daughter, and dog -- for now.\",\"sameAs\":[\"https:\/\/www.linkedin.com\/in\/samuel-wigness\/\",\"https:\/\/twitter.com\/SamuelWigness\"],\"url\":\"https:\/\/www.solar.com\/learn\/author\/swigness\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"What\u2019s Next for the Residential Clean Energy Tax Credit, and What Can Solar Proponenets Do? | Solar.com","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.solar.com\/learn\/whats-next-for-the-residential-clean-energy-tax-credit-and-what-can-solar-proponenets-do\/","og_locale":"en_US","og_type":"article","og_title":"What\u2019s Next for the Residential Clean Energy Tax Credit, and What Can Solar Proponenets Do?","og_description":"July 3 Update:\u00a0Congress has officially passed the &#8220;One Big Beautiful Bill&#8221; and an early termination of the 25D solar tax credit at the end of 2025. 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