If going solar has been on your mind, now is the time to take action. Thanks to the Inflation Reduction Act, homeowners currently enjoy a 30% federal tax credit on the cost of installing solar. But that incentive may be coming to an early end.
A newly proposed federal budget could eliminate the solar tax credit for residential systems starting in 2026, cutting short the program that was originally set to last through 2034. That means 2025 could be your last chance to lock in this major savings opportunity.
What Is the Federal Solar Tax Credit?
The federal solar tax credit has played a major role in making solar energy more affordable for homeowners. Since 2006, it’s allowed people to deduct a portion of their solar system costs from their federal taxes—saving thousands of dollars right off the bat. This reduces the upfront cost of going solar and helps homeowners see a faster return on their investment through lower electric bills.
Right now, thanks to the Inflation Reduction Act, homeowners can claim 30% of their total solar system cost as a tax credit. So if your system costs $25,000, you could get $7,500 back when you file your taxes. It’s one of the biggest financial incentives available for going solar—and it’s helped make clean energy a smart and achievable choice for more families across the country.
What’s Changing?
A budget proposal introduced in the U.S. House of Representatives would end the residential portion of the credit after December 31, 2025. If passed, this would reduce long-term incentives for homeowners—and make solar more expensive for those who wait.
To qualify, your solar system must be completely installed and operational before the end of 2025.
Why Timing Matters
Installing solar doesn’t happen overnight. Between system design, permitting, utility coordination, and installation, the process can take a few months from start to finish.
Getting started now gives you the best chance to finish in time—and avoid the inevitable rush of homeowners trying to meet the deadline later in the year.
What You Can Do
1. Speak Up
If you believe in the power of clean energy and the importance of renewable energy incentives, reach out to your state and federal representatives. Let them know you support preserving the solar tax credit as originally outlined in the Inflation Reduction Act.
2. Start Your Solar Project Today
Contact My Generation Energy for a free solar site assessment. We make the process easy. My Generation Energy handles everything from your initial site visit to flipping the switch. We’ll ensure your system is installed on time, so you don’t miss out on the 30% credit.
Take Advantage of the 2025 Federal Tax Credit Before Year’s End
Whether you’re ready to make the switch or just exploring your options, we’re here to guide you every step of the way.
At My Generation Energy, we’ve helped thousands of homeowners and businesses across Cape Cod and Southeastern Massachusetts lower their energy bills and embrace clean, renewable power. With potential changes to solar incentives on the horizon, now is the perfect time to learn more.
Reach out today to schedule your free solar assessment—and take the first step toward a brighter, more affordable clean energy future.
