Can I still get a solar tax credit?
In early July 2025, Congress voted to repeal the 30% federal tax credit for homeowners who install solar on their homes. The repeal takes effect January 1, 2026.
You might be asking yourself:
- Should I go solar before 2026 to benefit from the 30% tax credit?
- Does the repeal of the 30% tax credit affect me if I’ve already gone solar?
- Should I pay for my solar system in advance?
Here’s what you need to know if you’re thinking about, or in the process of, going solar:
If you don’t yet have solar
The 30% residential credit (called “25D” based on its location in the tax code) will not be available after 2025 for solar panels or battery storage. If you are planning to pay cash or finance your solar and/or storage system through a loan, we highly recommend you go solar in 2025 to benefit from the credit.
The safest way to ensure your installation will qualify for the tax credit is to have it completed and ready to be connected to the electric grid. (Note: SUN is not a tax advisor. You should consult a tax advisor to determine the extent to which your installation is eligible.) Additional guidance about this from the IRS may not be available for several months.
Be cautious with paying a solar installer in full in advance of all work being completed. SUN does not recommend doing this. It is best practice with any home improvement contract to reserve some payment until all work is completed to your satisfaction.
If you have installed solar and are looking to roll over the tax credit to future years
Previously, homeowners who couldn’t use the entire tax credit in the first year could roll over the unused credit to a subsequent tax year. With the loss of the tax credit after 2025, and without additional IRS guidance, we encourage you to assume you may not be able to carry over the remaining solar tax credit into subsequent tax years.
If you are looking to purchase an electric vehicle or energy efficiency devices
The $7,500 credit for new electric vehicles and up to $4,000 for used electric vehicles ends after September 30, 2025. The energy efficiency tax credits will only be available for projects placed in service by the end of 2025.
Want to go solar but don’t know where to start?
Our Solar Help Desk offers expert, unbiased help—tailored to your solar journey. Our free resources include:
- Go Solar Guide
Learn the solar basics—how it works, how much it costs, and how to get started.
- RoofCheck Plus
Find out if your roof is ready for solar with a quick assessment.
- 15-minute consult
Talk to a solar expert and get your first questions answered.
Start here if you’re just beginning your solar research.
Contact