Solar Tax Credit 2025 FAQ: What You Need to Know Before It Ends
Warning! The solar tax credit ends on December 31, 2025. To qualify, you need to start your solar installation now. Don’t miss out on your last chance to save 30% on solar panels and battery backup! Schedule your free consultation with SouthFace Solar & Electric today.
If you’re planning to install residential solar panels in 2025, you don’t want to miss out on the federal solar tax credit. The solar tax credit is a solar incentive that reduces your federal income tax liability by 30% of your solar installation costs. It can save you thousands of dollars on your solar installation!
The biggest financial incentive for solar panel installation is about to expire.
The 30% federal solar tax credit, which can save you thousands of dollars on your solar panel installation, ends on December 31, 2025.
Losing this credit means home solar panels are about to get a lot more expensive, with higher upfront costs and longer payback periods.
Here’s what you need to know if you don’t want to miss out.
1. Can I still claim the solar tax credit in 2025?
Yes. The solar tax credit is available for solar energy systems installed in 2025. But time is running out. To qualify for the tax credit, your solar panels need to be up and running by the last day of the year.
That means you only have a few months left to sign a contract, obtain permits, install your system, and pass inspections. The process takes time, and you need to start today if you want to beat the tax credit deadline.
2. What do I need to do to claim the tax credit before it expires?
The honest answer is: start now.
To claim the solar tax credit, you need to install your solar panels by the last day of 2025. It might sound like you still have plenty of time, but this isn’t a project you can start at the last minute.
The solar installation process takes around 3 months or longer from start to finish. That means you only have a few weeks left to get going with enough time to finish by the end of the year.
At SouthFace Solar & Electric, we’re working overtime to help as many of our customers as possible install solar before the tax credit expires. But there are steps in the process we can’t control. Permitting and utility approval timelines are out of our hands, and, as we get closer to the end of the year, we expect to see a rush of homeowners trying to get in under the deadline.
Meanwhile, our schedule is filling up and we only have a few slots left. Reach out to us today to secure your spot before it’s too late.
3. How do I claim the tax credit?
The most important thing is to start your installation soon and finish before the deadline.
After that, claiming your tax credit is easy. All you have to do is complete IRS Form 5695, Residential Energy Credits, and submit it when you file your federal tax return for 2025.
We recommend hanging on to your receipts and invoices so you have them for easy reference when you file.
4. Can I claim the solar tax credit for a battery?
Yes! Solar batteries qualify for the solar tax credit in 2025. You can claim the tax credit for a new solar plus battery system or if you add a battery to an existing solar energy system.
The same timeline applies to the tax credit for solar batteries as it does for solar panels. To qualify, your installation needs to be completed by December 31, 2025.
5. Do I have to pay for my installation in cash to claim the credit?
Nope. You can claim the solar tax credit whether you pay for your installation in cash or finance it with a loan. There are many excellent solar financing options available, and we can help you evaluate your options during a free consultation.
If you choose to finance your installation, your loan payment will almost definitely be lower than your current electric bill, so you’ll start saving money right away.
An important note: You cannot claim the solar tax credit if you lease your solar panels. You have to own them to qualify.
Start Your Solar Installation Today with a Free Estimate
With solar, you’re in control of your home’s electricity access and your energy costs, which is more valuable by the day as electricity prices continue to rise.
Right now, you have the chance to save 30% on your installation costs. That’s a huge price difference that will result in a faster payback period and higher lifetime savings. But the window on this opportunity is closing fast. Reach out to us today to schedule your installation before it’s too late.
Don’t miss your chance to save 30% on solar panels! Call 480-405-6105 today to get your free consultation and estimate.
This article is provided for informational purposes only. We always recommend that you consult a tax professional about your specific situation.
