If you’ve been thinking about installing solar panels, now may be your last chance to cash in on a major federal tax incentive.
Homeowners across the U.S. are rushing to install residential solar systems before the 30% Residential Clean Energy Credit expires on December 31, 2025.
The credit, which offers an unlimited 30% payment to help offset the cost of home solar panel installation, is being phased out following the passage of the Trump administration’s “One Big Beautiful Bill,” which calls for ending the program this year.
In Lansing, Adam Phelps with Absolute Solar says demand has surged.
“A lot of people have been telling me, I wish I would have done this five years ago when they first started thinking about it or looking at it, and turning into how quick can you do it? It’s a lot happening very fast,” Phelps said.
He says inquiries from homeowners have doubled or even tripled since July, as word of the upcoming deadline spreads.
Homeowners who want to take advantage of the credit need to act fast. According to Phelps, solar systems must be installed and commissioned by the end of the year to qualify — a process that can take two to three months from start to finish.
Businesses and nonprofits have a bit more breathing room. Phelps says the federal credit for commercial and nonprofit solar projects will remain available into 2026 and 2027.
“For commercial and nonprofit entities, there is a little bit of a larger window there into 2026 and 2027, as far as the federal credit still being available for those types of projects,” he said.
With time running out, solar companies are urging homeowners not to wait until the last minute — or risk missing out entirely.
The IRS indicates that more than 1.2 million households claimed the Residential Clean Energy Credit on their 2023 tax returns.
