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These states will soon lose all government incentives for solar panels: 'Act fast if you ... live in one of these states'

The clock's ticking.

The clock’s ticking.

Photo Credit: iStock

If you've been thinking about getting solar panels, now might be your last real chance to lock in serious savings.

What's happening?

President Donald Trump signed the "Big Beautiful Bill" on July 4, ending the federal residential solar tax credit (also known as the Investment Tax Credit, or ITC) at the end of 2025, nearly a decade ahead of schedule.

That credit currently covers 30% of the cost of installing solar, and for many people, it's what makes going solar financially feasible. But once it's gone, it's gone. It takes about 12 weeks to complete a rooftop solar project, so those planning to get solar soon should consider acting as soon as possible through a resource like EnergySage, which helps to compare installers.

Why does this matter?

This federal credit has been one of the most effective tools homeowners have had to make solar panels more affordable. Without it, upfront costs become significantly higher (in some cases by over $13,000), and it could take five years or more to break even on your investment. That makes it harder for everyday families to cut their energy bills or make their homes more resilient.


Want to go solar but not sure who to trust? EnergySage has your back with free and transparent quotes from fully vetted providers in your area.

To get started, just answer a few questions about your home — no phone number required. Within a day or two, EnergySage will email you the best options for your needs, and their expert advisers can help you compare quotes and pick a winner.

The Cool Down may receive a commission on signups made through links on this page, but we only promote partners we vet and believe in. For more cool tips like this one, check out our solutions marketplace here.

And then there's the issue of reliability. Hurricane Helene left over 4.7 million people without power in Georgia alone. Wildfires in California blacked out millions of homes in early 2025. As these extreme weather issues become more common, rooftop solar paired with battery storage can serve as a lifeline. It keeps your lights (and fridge and Wi-Fi) on, even when the grid goes down.

What can you do now?

EnergySage explained that you should "act fast if you want to go solar and live in one of these states."

Yes, you still have some time, but the clock's ticking. If you live in Georgia, Louisiana, Tennessee, West Virginia, or Arkansas and want to qualify for the 30% federal tax credit, your system must be installed and running by the end of 2025.

Start by checking your options through EnergySage's free tools. They can connect you with vetted installers, break down the numbers in plain English, and show you financing options so you can know what step to take.

FROM OUR PARTNER

Save $10,000 on solar panels without even sharing your phone number

Want to go solar but not sure who to trust? EnergySage has your back with free and transparent quotes from fully vetted providers that can help you save as much as $10k on installation.

To get started, just answer a few questions about your home — no phone number required. Within a day or two, EnergySage will email you the best local options for your needs, and their expert advisers can help you compare quotes and pick a winner.

And it pays off. The average homeowner using EnergySage saves almost $10,000 through incentives and rebates. Even better? It has a state-by-state solar map, so you can see exactly what solar panels cost in your ZIP code and what incentives might still be available.

The sooner you start, the more likely you are to grab every dollar of support that's still out there before it disappears for good.

What's the biggest factor preventing you from investing in solar power?

The cost 🫰

Roof orientation or integrity 🏠

I don't own a home 🤷

I already have solar panels 😎

Click your choice to see results and speak your mind.

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