As Congress eyes the elimination of money-saving residential energy tax credits, industry insiders believe that homeowners should take advantage of solar panel installation now before it's too late.
When President Trump began his second term in January 2025, his administration signaled a desire to eliminate many incentives included in the Inflation Reduction Act. According to experts, the elimination of Section 25D of the U.S. Tax Code may be next on the chopping block at the end of 2025.
Section 25D, also known as the Residential Clean Energy Credit, is a federal tax credit designed to incentivize homeowners to invest in clean energy for their homes, including solar panel installation. With the investment tax credit, homeowners are eligible for a credit worth 30% of their full solar installation cost on their federal taxes. As of now, the program runs through 2034, but the clock may be ticking.
According to EnergySage, the "accelerated phase-out would likely trigger a surge of solar installations as homeowners rush to complete their projects before the end of 2025." For now, solar energy remains one of the most cost-effective and efficient home energy solutions on the market. Not only can you save bundles of money on your electric bill each month, but you can reduce pollution around your home as well.
Aaron Nichols, research and policy specialist for Exact Solar, believes that the uncertainty of the IRA may have created hesitation in some homeowners.
"Even though we've seen a lot of business with people trying to get it in before whatever happens with the credits, there's also people who are just not sure what's going to happen," Nichols told EnergySage.
While Congress mulls the removal of the solar tax credits, now may be the perfect time to take advantage of the incentives while you still can. You can check out EnergySage's free services, which make it a breeze to compare quotes from trusted solar panel installers. With EnergySage's help, the average person can receive up to $10,000 in savings.
"If you're considering going solar, the potential 2025 deadline means the clock is now ticking," reports EnergySage. "Speaking with installers sooner rather than later can help ensure your project is completed in time to qualify for the 30% tax credit."
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