Solar energy experts and advocates are pushing for action on Capitol Hill as a vital tax incentive faces an uncertain future that could include the loss of tens of thousands of jobs across the United States, according to EnergySage.
What's happening?
Congress has signaled that it may remove the residential solar tax credit — often referred to as the Investment Tax Credit, or ITC — by the end of 2025, almost a decade earlier than planned. This has raised alarm among advocates concerned about impacts on families' livelihoods and their access to cleaner, more affordable energy.
EnergySage and other solar experts have been meeting with lawmakers to argue for protecting the incentives. Core to their fight are the multiple advantages of growing household shifts to solar, including the potential for substantial savings on home energy bills and the reduction of planet-warming pollution.
As electricity demand rises in the country and as more intense, more frequent extreme weather events, driven by human-caused climate change, jeopardize traditional power systems, residential solar can also help communities withstand grid blackouts.
With the ITC possibly ending in 2025, homeowners may want to act quickly to ensure they can benefit from the 30% tax credit. One way to start the process is by exploring EnergySage's free tools to compare quotes from vetted installers and save on installation costs.
Why is the possible removal of the residential solar tax credit concerning?
The ITC is a federal policy created to support the expansion of solar power in neighborhoods across the U.S. According to the Solar Energy Industries Association, the American solar industry has grown more than 200 times since the ITC was established in 2006.
The residential solar industry now supports more than 100,000 jobs, most of which are installation roles at small businesses across the country. As EnergySage wrote, "Eliminating the 25D credit would wipe out around 62,000 American jobs by the end of this year, and almost 200,000 next year, according to SEIA."
Phasing out the ITC earlier than planned could also hinder the country's shift to cleaner, more affordable energy.
For those also losing jobs as a result, the economic impacts could be compounded. And, if Congress removes the incentive, people may hesitate or be unable to go solar due to the high upfront costs of buying solar panels, despite long-term savings.
What's being done about it?
EnergySage has said it will continue urging Congress to save the ITC, emphasizing that residential solar is too important to abandon given its contributions to extreme weather mitigation, energy independence, and the economy.
Individuals are getting involved too, sharing their thoughts about the significance of clean, affordable energy supports with their elected officials. And homeowners can still go solar to receive the tax credit — though experts are urging quick action, as the ITC may not last forever.
EnergySage offers free resources to streamline this process, including a state-by-state mapping tool that shows average costs and available incentives for home solar panel installations. With EnergySage's help, residents have the potential to save up to $10,000 on solar installations.
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