With utility bills rising and summer temperatures breaking records, many Americans are turning to rooftop solar as a long-term solution for lower costs and energy independence. But, according to the solar experts at EnergySage, a critical federal incentive that makes solar more affordable may be eliminated soon.
The scoop
The residential solar Investment Tax Credit (ITC), which currently allows homeowners to deduct 30% of their solar installation costs from their federal tax bill, is on the chopping block in Congress. Originally set to remain in place until 2032 before gradually phasing out, industry experts predict that the ITC could now be eliminated much sooner (potentially within months) if lawmakers approve the latest version of a sweeping budget bill called the "Big, Beautiful Bill."
The Senate just voted to advance the bill back to the House on Tuesday after making revisions, leaving many of the provisions in jeopardy. Right now, homeowners can claim the tax credit on the total cost of a solar system, which can save around $7,200 on a typical $24,000 installation, and those incentives should be safe through at least the end of 2025.
How it's helping
The 30% tax credit has played a vital role in expanding residential solar adoption and has helped the solar industry grow 200 times its size since its enactment in 2006. At the individual level, solar panels help homeowners save thousands up front and reduce electricity bills in the long term.
Aside from cost savings, solar offers energy security during outages and price spikes, and reduces reliance on dirty fuels for energy, which are also the greatest source of U.S. planet-warming gas pollution.
Homeowners can take advantage of the federal solar tax credit while it's still available by using EnergySage to quickly compare quotes (which can potentially save an average of $10,000) from vetted installers and start the installation process with the tools they need before any potential deadline.
What everyone's saying
Regarding the potential cut, Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association, said, "Americans' electric bills will soar. Hundreds of factories will close. Hundreds of billions of dollars in local investments will vanish. Hundreds of thousands of people will lose their jobs. Families will lose the freedom to control their energy costs. And our electric grid will be destabilized. "
Many consumers are asking solar businesses questions like "Is this really going to happen? Can you fit me in before the end of the year? Why is this happening?"
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. |
With the 30% federal tax credit "on the chopping block," EnergySage's state-by-state mapping tool makes it simple to see average solar costs and available incentives locally, so you can save money before the opportunity might disappear.
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What's the biggest factor stopping you from investing in solar panels? Click your choice to see results and speak your mind. |
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