Go Solar Now Before the Big Beautiful Bill Eliminates the Tax Credits!

Thinking about going solar? Whether you’re a first-time solar shopper or already familiar with panels, now is the time to act. A new law – ironically nicknamed the **“One Big Beautiful Bill” Act – is putting the generous federal solar tax credits on the chopping block much sooner than expected. In other words, the 30% off deal Uncle Sam has been giving for solar is about to disappear several years earlier than planned, and you don’t have much time. Below we’ll break down all the incentives you can still grab (federal, state, and more), why it’s urgent to move fast, and how to find the best installer for your solar project before these perks vanish. Let’s dive in!

Why the Rush? Federal Solar Tax Credit Set to End Early

Timeline: The fate of the 30% federal solar tax credit under the new law. The One Big Beautiful Bill Act, signed in 2025, moved up the credit’s end date to December 31, 2025 (previously 2032 under old law). Homeowners must have solar installed and operational by then to claim it.

The biggest reason to go solar now is the looming end of the federal solar tax credit. This credit currently covers 30% of your solar installation cost as a dollar-for-dollar reduction in your taxes. For example, on a $30,000 solar setup you’d get a $9,000 tax credit – a huge savings. It’s been the single most valuable incentive for home solar for years.

Originally, the Inflation Reduction Act of 2022 had extended this 30% credit all the way through 2032, with a gradual phase-down after that. Homeowners thought they had plenty of time. Not anymore. In July 2025, a budget law known formally as “An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14” (aka the One Big Beautiful Bill Act) was signed into law. One of its many key moves was slashing the solar tax credit timeline by seven years:

• The Residential Clean Energy Credit (Section 25D) – the 30% tax credit homeowners claim for solar – was supposed to run through 2032. Now it will end on December 31, 2025. Any residential solar system installed after 2025 will not qualify for this credit. In other words, 2025 is your last chance to get 30% off your system from the feds.
  
• The credit remains 30% for 2023, 2024, and 2025. There is no gradual step-down – it just drops to 0% starting in 2026. If your home solar isn’t up and running by New Year’s Eve 2025, you’ll miss out on thousands of dollars in savings.
  
• Importantly, there’s no retroactive claw-back. If you already installed solar or install before the deadline, the new law doesn’t take away credits you’ve earned. So you can confidently claim the 30% for projects done now through 2025, and you won’t lose it later.
  
• What about people who go solar after 2025? As it stands, they’ll get no federal credit at all for buying a solar system. The only remaining federal incentive will be for third-party owned systems (like leases or power purchase agreements), which can still get a 30% credit until the end of 2027. In those cases the solar company claims the credit (under Section 48E) and typically passes savings to you via lower payments, but not all companies fully pass those savings along to consumers. But owning your system outright and claiming the credit yourself? That opportunity ends with 2025’s deadline.

In short, the clock is ticking. The law, often shorthanded as the “Big Beautiful Bill,” essentially says “use it or lose it” when it comes to federal solar incentives. If you wait until 2026 to decide, you’ll be looking at a 30% higher net cost for the same solar system, because that federal discount will be gone. That could mean paying many thousands of dollars more out-of-pocket – money that’s currently on the table for you to take.

All the Solar Incentives You Can Still Grab (for Now)

The federal 30% tax credit is the headline incentive, but it’s not the only one. Savvy solar buyers can stack multiple benefits to reduce the cost and increase their savings. Here’s a quick look at all the incentives you might take advantage of before they’re gone or reduced:

• Federal Solar Tax Credit (30%) – Expires Dec 31, 2025: As discussed, this is a dollar-for-dollar credit equal to 30% of your system cost, usable against your federal income taxes. If you owe less tax than the credit, you can roll over unused credit to future years. It applies to solar panels and also home battery systems (thanks to recent expansions) as long as they’re installed with or after the solar. No income limit applies – anyone who pays federal tax can use it. This is the big one to lock in before the 2025 cutoff.
  
• State Tax Credits: Many states offer their own tax credits for installing solar. These vary widely, but can be very valuable. For example, New York provides a 25% state tax credit (up to $5,000) for residential solar. Arizona offers a 25% credit up to $1,000. States like Massachusetts, Illinois, South Carolina, and others also have solar tax credits or rebates. These programs often have their own end dates or funding limits, and some are already winding down. (In general, states like California, New York, Massachusetts, Connecticut, and Maryland lead the pack in generous solar incentives.) Check what your state offers – it could be icing on the cake in addition to the federal credit.
  
• Cash Rebates (State/Utility): Unlike tax credits (which apply when you file taxes), rebates are upfront cash incentives. Certain state programs, city initiatives, or utility companies will pay you a rebate for going solar. For instance, some utility providers or local governments have solar rebate programs that give a set dollar amount per watt of solar installed (e.g. $$500-$2,000+ rebates). These rebates are essentially instant discounts. California’s SGIP program offers big rebates for adding battery storage, and other states have similar offerings. Rebates tend to decline or disappear as more people go solar (limited funds), so the sooner you act, the better your chances of snagging one.
  
• Net Metering Credits: While not an up-front incentive, net metering is a policy that lets you earn credits on your electric bill for the extra solar energy your panels send back to the grid. In many states, your utility will credit you at or near the full retail rate for each kilowatt-hour your system exports, effectively making your meter “run backwards” when you produce surplus. This can dramatically increase your savings over time by offsetting nighttime or winter electricity use. Why mention it now? Because net metering rules are also changing in some areas (often becoming less generous). For example, California recently shifted to a less lucrative net billing plan. Locking in the current net metering policy by going solar now can grandfather you in for years of better credits. It’s an often overlooked incentive that adds long-term value.
  
• State/Local Tax Exemptions: A number of states waive sales tax on solar installations or exempt the added home value from property tax. For instance, Arizona has 100% sales tax and property tax exemption for solar systems. Many other states (New York, Florida, etc.) also exempt solar from property tax assessments. This means you don’t pay extra taxes even though solar can increase your home’s value. These policies help keep the ongoing and upfront costs lower.
  
• Other Renewable Energy Credits/Payments: In some regions, you can earn Solar Renewable Energy Certificates (SRECs) or other performance-based incentives for the energy your panels produce. These are like renewable energy “credits” that can be sold for cash to utilities or brokers. SREC programs exist in states like NJ, MD, PA, and others. If available, this becomes an additional revenue stream from your solar, on top of bill savings.
  

That’s a lot of potential incentives! The good news is that today (in 2025) you can layer many of these: for example, claim the 30% federal credit and a state credit and a utility rebate, all for the same project. The combination could chop your net cost down dramatically. The bad news is that most of these incentives won’t be around forever. The federal credit’s early termination is the big change – it goes away end of 2025. Many state credits or rebate funds are also first-come-first-served or sunsetting in the next couple years. It’s truly a scenario of “early bird gets the worm” when it comes to solar incentives.

Don’t Wait – Solar Installations Take Time!

If you’re thinking, “Alright, I have until December 2025 to install, what’s the hurry in mid-2025?” – remember that going solar isn’t an overnight process. From the time you sign a contract with an installer, it typically takes a few months to get your system designed, permitted, installed, and passed inspection. And that’s in normal times. Now add the time pressure: as more homeowners realize the credit is ending, a rush is expected for the rest of this year. High demand can lead to backlogs in permitting and fully booked installers.

Consider the timeline: To qualify for the credit, your system must be “placed in service” (installed and ready to operate) by Dec 31, 2025. If you wait until fall of 2025 to start shopping, you might find installers are booked out or cannot guarantee completion by year-end. Supply chain and labor shortages could also flare up as everyone jumps in last-minute. The safest bet is to start the process as early as possible – ideally now, so you have plenty of buffer.

Here are a few tips to help you have your best shot at beating the deadline:

• Line up financing early. If you plan to use a solar loan or need to budget, start researching that now. Interest rates are a consideration, but remember you can often refinance later if rates drop, whereas missing the tax credit is a permanent loss. Even with higher interest, the 30% credit savings can usually more than justify moving now rather than waiting on possible lower rates.
  
• Choose a reputable installer with bandwidth. Larger or well-established installers may have more capacity to handle a surge in projects. On the other hand, a smaller local installer might give you more personal attention but could get overbooked. When getting quotes (we’ll cover this next), ask about their estimated timeline and ability to complete the job before the deadline. Make the timeline a part of your decision.
  
• Stay on top of paperwork and permits. Once you sign a contract, your installer will handle permits and interconnection applications. But you can proactively check in on progress. Sometimes paperwork can stall – don’t be shy to ask for status updates. Every week counts as December 2025 approaches.

The bottom line: procrastination is your enemy here. You don’t want to be scrambling in December 2025 trying to get an inspection scheduled. By acting sooner, you not only ensure you’ll capture the expiring incentives, but you’ll also start saving on your electric bills that much sooner – a double win.

Get Multiple Quotes and Evaluate Installers Wisely

Choosing a solar installer is a crucial step, and while we have spent this entire article urging you to make haste, it’s often best not to go with the first quote you get. In fact, speaking with more than one company is highly recommended to ensure you get a competitive price, quality service, and a right-for-you timeline. This is a big investment – a good installer will maximize your benefits and a not-so-good one could cost you in the long run. Here’s how to compare and choose wisely:

• Gather at least 2-3 Quotes: Prices can vary significantly between installers for the same size system. When you have multiple quotes, you have leverage and insight. Look at each proposal’s system size (kW), estimated energy production, and total cost. A handy metric is the cost per watt – divide the total price by the system size (in watts). This lets you compare pricing on an apples-to-apples basis. Also note what equipment is being offered (which panel and inverter brands, any batteries, etc.).
  
• Compare the Details: Don’t just focus on the bottom-line price. Examine the equipment quality and warranties each installer is providing. Are they using Tier-1, well-regarded solar panels and inverters? How efficient are the panels? High-efficiency panels can produce more power in limited roof space, but may cost more – decide if it’s worth it for you. Check the warranties: good solar panels often come with 25-year performance and product warranties, and inverters typically around 10-25 years depending on type. Also see if the installer offers a workmanship or installation warranty (covering labor or roof penetrations). A cheaper quote might skimp on warranty or use lower-tier components, so factor that in.
  
• Financing and Payment Options: If one quote includes a loan or lease offer, look at the terms. What’s the interest rate or monthly payment? Are there any escalator clauses (for leases/PPAs)? Sometimes an installer might advertise “$0 down” which is great, but compare the long-term cost of financing. Also, be wary of any installer pushing too hard for a particular financing without transparency. The fine print on financing matters – a great cash price can be offset by a poor loan with high interest.
  
• Installer Reputation and Experience: Do some homework on each company. How long have they been in business? Read reviews from other customers in your area. Check if they are licensed and insured (they should be). You can also ask if they have certifications like NABCEP (a respected solar installer certification). An experienced installer should also be familiar with local permitting and incentive paperwork – which can smooth the process for you.
  
• Ask Questions: Treat your interactions as an interview. Good installers will explain their quote clearly and answer all your questions. For example, ask: “How did you determine this system size for my home?”, “What happens if my system under-produces compared to your estimate?”, “Do you handle the incentive paperwork/filings?” and “What’s your timeline for installation if I sign this month?”. Their responsiveness and clarity now can be a good indicator of how they’ll be during the install. You want someone who educates and communicates well, not a company that pressures you with sales gimmicks.
  
• Project Timeline and Process: As mentioned, timeline is key. Have the installer lay out the steps from signing to turning on the system. A great installer will give you a complete picture of the project timeline – site survey, design, permit submission, installation schedule, inspection, utility interconnection – so you know what to expect. If an installer provides a very rosy timeline, make sure it’s realistic (permits, for instance, often take a few weeks or more depending on local building departments).

By comparing multiple quotes side-by-side, you’ll get a sense of the fair price range in your area and which company offers the best overall value (not just cost, but service and quality). Often, this process might even allow you to negotiate a bit – if you prefer Installer A but their price is a tad higher than B, you can politely mention that and see if there’s room to match or come closer. Competition works in your favor here.

Remember, you’re not only looking for the best deal, but also the best partner to ensure your solar project is a success – especially under a tight deadline. The last thing you want is a fly-by-night installer who leaves you in limbo come December 2025. So choose a company you feel confident will deliver on time and stand by their work.

Conclusion: Act Now to Secure Your Solar Savings

Solar panels are a long-term investment that can save you tens of thousands of dollars on electricity over their lifetime. But right now, there’s a once-in-a-generation urgency to act because a big chunk of those savings – the federal tax credit – is about to vanish much sooner than we all thought. The new law (the *“Big Beautiful Bill” Act) has “cemented an early termination” of the 30% solar credit at the end of 2025. In plain English: if you want that 30% off, you need to have your solar system in place before New Year’s 2026. No extensions, no do-overs.

The upside of this urgency? You still have time right now to make the most of all the incentives out there. Stack the federal credit with any state and local perks, lock in good net metering rates, and enjoy lower solar prices that have come down over the years. It’s the perfect window to jump in.

So, our advice: don’t procrastinate. Start researching and reach out to reputable solar installers sooner rather than later. Get a few quotes, ask the questions, and find the best deal. Each month you wait is a month closer to missing out on free money from the government – and nobody wants to leave free money on the table.

Going solar can feel like a big step, but it’s one that countless homeowners say they’re grateful they took – and with these expiring incentives, you’ll be even more grateful you took it in time. You’ll be locking in decades of savings, increasing your home’s value, and generating clean energy for your family. All while knowing you grabbed every dollar of incentive available.

Ready to get started? Speak with a few solar providers (we can help connect you with some great ones) and see how much you can save. The key is to act now. The sun is still shining, the credits are still here (for now), and your opportunity to “go solar” under the best conditions is NOW. Don’t wait until the Big Beautiful Bill’s changes leave you saying “I wish I had done it earlier.” Go solar now and secure your slice of the solar savings pie – before it’s gone!