Don't wait: Why now is the time to go solar—before the 30% residential tax credit potentially disappears

We’re fighting to save the ITC—but now is the time to lock in your 30% tax credit while it’s still guaranteed.

Written by:
Edited by: Casey McDevitt
Updated May 16, 2025
5 min read
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Why now is the time to go solar
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As President and COO of EnergySage, I'm not typically one to sound alarm bells. But today, I need to be direct with you about the state of clean energy policy: Clean energy programs that directly benefit people like you are under attack on Capitol Hill. Specifically, the residential solar tax credit—which puts thousands of dollars back in average homeowners' pockets—is at serious risk of ending early. If you’re considering going solar now or in the near future, my best advice is not to wait any longer.

Here's the situation: The current budget bill moving through Congress proposes ending this incentive nearly a decade earlier than planned. Instead of continuing through 2034 as originally legislated in the Inflation Reduction Act, the 30% residential Investment Tax Credit (ITC), Section 25D of the U.S. Tax Code, could disappear at the end of 2025. For the average American, that means losing out on $9,000 in savings if you don’t go solar this year.

The ITC has democratized solar, accelerated the American transition to clean energy, and created thousands of American jobs. Yet the current House bill threatens to terminate this pivotal program, which would deal a huge blow to thousands of small businesses and millions of homeowners across America—both in red and blue states.

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The fight to preserve the residential solar tax credit is far from over, but I want to be crystal clear: I’m telling my friends and family that if they’ve ever wanted to go solar, they should take action now. Here’s why:

  • Savings. Chances are high (as of now) that the 30% tax credit will be eliminated at the end of 2025.

  • Installation timelines matter. To qualify for the credit, your system must be fully installed and operational by December 31, 2025.

  • Installers are already seeing increased interest. The best local installers may book up months in advance.

  • Equipment availability could tighten. As more homeowners rush to beat the deadline, supply constraints may emerge.

Despite the recent budget proposal, solar is a bipartisan issue. If the tax credit does end up being saved (and trust me, we're fighting hard for this), then at worst, we've encouraged you to make the switch to clean energy a bit sooner. We'll own the "error" of being overly cautious on your behalf. But if the credit does disappear, waiting could cost you thousands of dollars—especially with electricity prices set to rise further. Coupled with continued inflation, locking in stable energy prices for your home is typically a smart investment, regardless of tax incentives. 

EnergySage is certainly not sitting on the sidelines. We’re working with industry partners on an aggressive advocacy campaign to save the ITC.

We encourage you to make your voice heard, too. The best way to help preserve this vital clean energy incentive is to contact your congressional representatives directly

Consider highlighting how the ITC is important to you. Are your electricity bills unmanageable, but solar could help? Have you faced multiple power outages, and want to feel secure? Do you support small, local businesses and thousands of jobs in your state? Abruptly ending the ITC with no phase-out period would increase the barrier to solar and storage adoption and cause installers to cut jobs in your community. Tell your representatives. 

This isn't just about solar panels or tax credits. It's about energy independence for American families, supporting small businesses, building a more resilient grid, and, yes, fighting climate change. This is about people, not politics.

At EnergySage, we're fully committed to this clean energy transition—to empower you with unbiased information, protect you from industry bad actors, and guide you toward smart energy decisions.

The path to a cleaner energy future has never been clearer, even if the policy landscape feels uncertain. Whether you decide to go solar now or later, know that we're in your corner every step of the way.

We're all in this together.

Charlie Hadlow
President & COO, EnergySage

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