Federal solar tax credit is to be ended by December 31, 2025 of this year! With congress cutting off one of the biggest financial incentives available to homeowners, if you’ve been waiting to go solar, it may be time to act.
This credit currently lets you deduct 30% of your solar installation costs from your federal taxes. Without it, solar becomes more expensive and that’s not the only risk.
Why Acting Now Is Smart
Going solar is already a smart investment. With the solar tax credit on the chopping block, it’s also time-sensitive.
Still have questions? Our local experts can walk you through how much you could save—and what it takes to lock in your incentive before it’s gone.
What Is the Solar Tax Credit?
The solar tax credit, also called the Residential Clean Energy Credit, helps homeowners afford solar by lowering upfront costs. It applies to:
- Solar panels
- Battery storage (installed at the same time)
- Installation labor and equipment
If your system is fully installed by the end of 2025, you can still claim the full credit.
Why It’s Ending Sooner Than Expected
In May 2025, lawmakers proposed ending the solar tax credit early—cutting off access after 2025 instead of phasing it down gradually.
Here’s what that means:
- No tax credit starting January 2026
- Battery systems lose eligibility too
- No carryover or grandfathering for incomplete installs
This change could pass quickly. And when it does, there’s no turning back.
What It Means for Oregon and Washington Homeowners
Waiting too long could mean:
- Losing 30% in savings
- Facing installation delays from the late-2025 rush
- Missing out on local rebates from Energy Trust of Oregon and Clark County PUD
In areas like Gresham, Tigard, and Vancouver, where grid outages are frequent, going solar now also boosts energy security.
How to Claim the Solar Tax Credit in Time
Don’t miss your window. Here’s how to act before the credit disappears:
- Get a quote now — Planning takes time.
- Schedule installation early — Most solar companies book out months in advance.
- Ask about battery storage — It’s eligible for the credit too, but only if installed with your system.
- Stack incentives — Combine federal, state, and local rebates to save even more.
Frequently Asked Questions
Q: How much can I save with the solar tax credit?
A: On a $20,000 system, the 30% credit equals $6,000 off your federal tax bill.
Q: Do I qualify for Oregon solar rebates too?
A: Yes! Local programs through Energy Trust of Oregon or Clark PUD can save you even more.
Q: Is it too late to install in time?
A: Not yet, but slots fill fast. We recommend starting your solar estimate by summer 2025 at the latest.
Get Started With A Free Estimate, No Obligation!