Rooftop solar panel deadline

Is the solar tax credit going away?

The residential solar tax credit is going away under the new law. The 30% credit will stay in effect through the end of 2025. After that, it will be eliminated entirely. There is no phase-out in the final bill. Starting in 2026, homeowners will no longer be able to claim the federal solar tax credit on new residential systems.

Can you get tax credits for solar panels?

If you've wanted to install rooftop solar panels or buy an electric vehicle in recent years, you've probably been able to get federal money for them in the form of tax credits. But those incentives are going away now that President Trump signed what he's called the "One Big Beautiful Bill" into law on July 4.

When does a solar PV system need to be installed?

Under the new law, a solar PV system must be installed by December 31, 2025 to be eligible for the credit. This affects both solar panel systems and home battery storage. If you’ve considered solar energy for your home, 2025 is the time to move forward.

Can solar panels be tax deductible?

In this way, a solar installation that is the property of the homeowner acts as a hedge against rising utility costs. These financial benefits have been enabled partially by the Residential Clean Energy Tax Credit, which provides a tax credit of 30% of the cost to install solar panels to homeowners in the year after installation.

Are rooftop solar installations a good investment?

In many US states, rooftop solar installations can provide financial benefits. The solar energy goes toward reducing the home’s grid energy usage, and any excess electricity generated can be sent back to the utility for at least some credit.

What happened to solar stocks after the House vote?

Following the House vote, investors reacted swiftly to the potential loss of one of the industry's most powerful demand drivers. On the day of the announcement, solar stocks saw steep declines: Sunrun dropped nearly 41%, SolarEdge fell 26%, and Enphase Energy slid 18%.