Go Solar Now To Claim $10,000 In Solar Tax Credits Before They End In 2025
Since 2005, the federal solar tax credit—officially known as the Investment Tax Credit (ITC)—has played a major role in making solar energy affordable for homeowners across the U.S. But as of 2025, this key incentive is once again at risk. Proposed legislative changes could significantly alter or even eliminate the credit, making now a critical time to understand the ITC’s history and its uncertain future.
A Look Back: The History of the ITC
The solar tax credit was first introduced through the Energy Policy Act of 2005, offering homeowners a 30% tax credit on the cost of installing solar panels. This meant that nearly a third of a system’s cost could be recouped through federal tax savings. In 2008, the Emergency Economic Stabilization Act extended the credit for eight years and removed a $2,000 cap, allowing homeowners to fully benefit from the 30% incentive.
In 2015, Congress set the credit on a gradual phase-out path, planning to reduce it year by year and eliminate it for residential systems by 2022. However, as demand for renewable energy grew, lawmakers extended the credit multiple times.
A major turning point came in 2022 with the passage of the Inflation Reduction Act. This legislation restored the 30% credit and extended it through 2032, with planned reductions to 26% in 2033 and 22% in 2034, followed by expiration in 2035.
Where We Stand in 2025
Today, homeowners who install solar panels in 2025 are still eligible for the full 30% federal tax credit. This has continued to make solar energy more affordable, encouraging adoption across the country.
This program has made a massive difference for homeowners. Freedom Solar customers who installed solar in 2024 saw a cumulative tax return of more than $27 million—an average of $9,900 per customer.
However, new proposals introduced in Congress this year threaten to undo much of that progress.
A recent budget bill passed by the U.S. House of Representatives calls for:
- Ending the residential solar tax credit by the end of 2025—ten years earlier than currently scheduled.
- Eliminating the tax credit for leased residential solar systems.
- Prohibiting the transfer of solar tax credits, a mechanism many companies use to help homeowners finance solar with little or no upfront cost.
These changes would not only raise the cost of going solar for homeowners but also disrupt the solar market and put thousands of clean energy jobs at risk.
What This Means for Homeowners
If these proposals move forward, the financial return on investing in solar energy could decline sharply for those who go solar after 2025 becausehomeowners would have to shoulder a much higher portion of the installation costs out of pocket. Additionally, limiting or eliminating solar financing tools—like leases and credit transfers—could make it harder for average households to afford solar at all.
Industry leaders, including Tesla, have publicly opposed the legislation, warning that it could stall the nation’s progress on clean energy and undermine private-sector investment in solar technology.
How You Can Take Advantage of the Credit Now
If you’re considering solar, the safest and smartest move is to act before any changes are finalized. Here’s what you can do:
- Go solar in 2025: Systems installed this year are still eligible for the full 30% tax credit. This could save you thousands of dollars on your investment. Keep in mind that the bill recently passed by the U.S. House of Representatives on May 22, 2025 (H.R. 1 – One Big Beautiful Bill Act), proposed to eliminate this credit for new projects not started within 60 days of the bill becoming law. While the bill has not yet passed the Senate or been signed into law, consumers should be aware of potential changes. Keep in mind that a solar project can take 3-4 months from sale to completion, so you’ll want to get started by the summer in order to be installed this year.
- Work with a trusted provider: Freedom Solar Power can walk you through available incentives and help you lock in savings while they’re still available.
- Stay informed: Legislative changes are still in progress. Keep an eye on developments or consult a solar professional who can keep you updated.