Despite increased pressure from environmental groups and solar energy advocates, the controversial "One Big Beautiful Bill" has been signed into law. Because of this, the residential solar tax credit is now set to expire by the end of 2025.
What's happening?
In an official release from the White House, the signing of H.R.1 was confirmed on July 4.
"Today, President Donald J. Trump officially signed The One Big Beautiful Bill into law — a once-in-a-generation piece of legislation that makes good on his campaign promises and puts America First," the release read.
According to the White House, the bill will help drive down "energy costs with a massive expansion of domestic oil and gas production capacity." This development aligns with the Trump administration's goal of "Unleashing American Energy" in an effort to make use of "affordable and reliable energy and natural resources."
But as EnergySage noted, this unleashing of energy will likely not include wind and solar energy resources. And perhaps more importantly to homeowners, H.R.1 failed to include an extension of the 30% residential solar tax credit.
Why is the passing of H.R.1 important?
The bill eliminates the Residential Clean Energy Credit, also known as the solar ITC, for purchases made after December 31, 2025. This means that homeowners who purchase and install solar panels, battery storage, and geothermal heat pumps must have their systems installed by the end of 2025 to be eligible for the 30% tax credit.
"The abrupt elimination would further disrupt the solar market, which is already facing economic headwinds due to Trump's tariffs and an earlier pause on IRA funds," wrote EnergySage.
By reducing the upfront cost of solar installations, the solar ITC aimed to make solar power more accessible and accelerate the transition toward cleaner energy sources.
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Solar energy is a clean, renewable resource that produces zero pollution and reduces our reliance on dirty fuels. This can help in our fight against the steadily increasing global temperature.
Additionally, solar panels can significantly lower electricity bills, potentially increasing your home's value. EnergySage gives you access to its free tools to help get quick solar installation estimates and compare quotes.
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The upfront cost 💰 What's being done about the ending of the solar ITC?
Although the move to eliminate the solar ITC may have thrown a wrench in many homeowner's plans to switch to solar, there is still plenty that you can do and plenty of savings to go around.
"At EnergySage, we encourage you to take action now by contacting your Representative to share how eliminating the residential solar tax credit would impact you and your community," the post read.
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While it is now too late for that to change, speaking up is still valuable to show representatives what voters care about. In the meantime, with the solar ITC set to expire by the end of the year, you might not have a better opportunity to save money while helping cool down our planet. By utilizing a company like EnergySage's free services, the average person can get nearly $10,000 in incentives for solar purchases and installations.
EnergySage has a helpful mapping tool that shows the average cost of a home solar panel system, as well as details on solar panel incentives for each state. Together, they can help you get the best price for rooftop solar panels and make use of all of the incentives that could be available to you.
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