With energy costs rising and solar installation demand at an all-time high, there’s never been a smarter time to go solar. The solar panel tax credit can save you thousands, but long project timelines and growing demand mean acting now is critical.
In this post, we’ll break down how the credit works, what the new 2025 changes mean, and why starting your solar journey today could secure your biggest return.
Legal Disclaimer: At Everlight Solar, we are solar experts, not tax experts! Tax codes are complicated, so consult your tax advisor before deciding what is best for you. If you have questions regarding your Federal Investment Tax Credit or IRS Form 5695, do not refer questions to your Energy Consultant or Everlight Solar. Rather, you should discuss your situation with your CPA or other qualified tax advisors. Everlight Solar is not responsible for or liable for any errors or omissions in regards to your personal tax and finance situation or obligations. The following is for informational purposes only, and should not be considered instructions or legal advice.
What Is the Solar Panel Tax Credit?
The solar panel tax credit, or the Residential Clean Energy Credit, is one of the most effective ways to make solar energy more affordable for homeowners. The credit allows solar system owners to receive a tax credit worth up to 30% of the eligible cost basis of a solar installation. This 30% rate applies to systems installed by December 31, 2025. The system must be installed at your primary or secondary residence and placed in service during the tax year in which you plan to claim the credit.
This is a dollar-for-dollar reduction in the taxes you owe. However, because it’s non-refundable, it can only be applied against your federal tax liability for the year your system is placed in service. If your tax liability is lower than your credit amount, you may not receive the full benefit in one year.
Homeowners must go solar now to lock in the full 30% savings before the credit expires! If you’re hoping to take advantage of solar incentives and get panels installed before the end of the year, don’t delay. The real cutoff for guaranteed progress falls between September and October. Waiting too long could mean missing out entirely.
What’s Changing with the Tax Credit?
This termination was part of the “One Big Beautiful Bill” (OBBB) signed into law by President Trump on July 4, 2025, which dramatically changes the federal solar tax credit:
Credit Ends in 2025
The 30% Residential Clean Energy Credit (Section 25D) expires December 31, 2025, with no phase-down. Your system must be installed by this date to qualify, potentially saving you thousands (e.g., $6,000 on a $20,000 system).
Why You Should Act Before the End of This Year
- Solar projects take time: From initial consultation to installation, timelines can range from weeks to months depending on permitting, utility approval, and scheduling.
- High demand means delays: As the 2025 deadline nears, expect bottlenecks and extended timelines. With more homeowners racing to claim the credit before future changes, these timelines are only getting longer.
- No federal credit in 2026 for homeowners: After December 31, 2025, homeowner-owned systems will no longer qualify for any federal credit under Section 25D.
✅ It’s your money—get it while it’s still on the table. Bottom line: Waiting could cost you thousands.
This isn’t just about tax incentives—it’s about building long-term energy independence and cutting your power bills for decades. The sooner you go solar, the sooner you start saving—and the better positioned you are to claim the full 30% credit. Schedule your no-cost consultation with Everlight Solar today and secure the soon-to-expire tax credit!
What You Need to Do Now
Here’s how to take the next step:
🔍 Step 1: Schedule Your No-Cost Consultation
Our experts will evaluate your home’s solar potential, answer your questions, and provide a custom proposal.
🏡 Step 2: Choose the Right Solar Solution
Select a solar system that fits your goals and budget. Remember, owning your system is key to claiming the credit.
🗓 Step 3: Start the Process Early
Everything takes time, from permits to installation dates. Getting started now helps your chances of getting your system qualified before December 31st, 2025.
💸 Step 4: File with Confidence
When tax season arrives, we’ll provide the documentation your tax advisor needs to file IRS Form 5695.
And don’t forget—solar isn’t just about tax savings. You’ll enjoy lower power bills, greater energy independence, and a more sustainable home! With Everlight Solar, you don’t just get panels on your roof—you get a partner in your energy journey. We’re here to make the switch seamless, simple, and seriously worth it.
Your Future Self Will Thank You
By going solar with Everlight Solar, you can:
- Lock in the full 30% credit, saving thousands
- Avoid installation delays as demand surges
- Slash energy bills and reduce your carbon footprint
The solar panel tax credit has helped thousands of homeowners take control of their energy—and their savings. But with key changes on the horizon and a hard deadline approaching, the time to act is now.
At Everlight Solar, we’ve helped thousands of families switch to solar with zero stress and maximum return. We’re proud to lead the Midwest in solar installations and even prouder to help our customers take advantage of every available incentive!
Don’t Wait—Your Window for Solar is Closing Fast
While we can’t promise an exact installation date—especially with unpredictable factors like weather—one thing is certain: demand is at an all-time high. Our schedule is filling up quickly, and the opportunity to lock in your solar project for this year is narrowing fast.
If you’re hoping to take advantage of solar incentives and get panels up before winter, don’t delay. The real cutoff for guaranteed progress falls between September and October. Waiting too long could mean missing out entirely.
Ready to make the switch? Now’s the time to act. Schedule your no-cost consultation today or fill out the form below to get started.
