Why Waiting Until 2026 to Install Solar Panels Could Cost You Thousands
If you’re sick of rising electricity costs and want to stop sending half your paycheck to the utility company every month, solar panels are the solution. They turn sunlight into free electricity for your home, saving you money every single month and quickly paying for themselves.
But residential solar panels are about to get much more expensive.
The 30% federal solar tax credit is set to expire on December 31, 2025. If you wait much longer to install them, you’re going to miss that deadline.
Here’s why (and how much) that could cost you.
Solar Costs are About to Go Up 30%
The federal solar tax credit is a government incentive that makes solar panels more affordable. It allows you to claim 30% of your installation costs as a credit on your federal income taxes for the year you install your solar panels.
Here’s what that looks like for a typical residential solar installation in Arizona:
- Initial Cost – $25,000
- 30% Tax Credit – $7,500
- Final Cost – $17,500
With the tax credit, you get almost a third of your investment back very quickly after you go solar. The result is lower upfront costs, a faster payback period, and higher lifetime savings.
Unfortunately, the solar tax credit is about to expire.
A new law was recently passed that ends the solar tax credit on December 31, 2025. Solar systems installed after that date will not qualify, which means you’ll be paying 30% more for solar panels if you wait until 2026 to install them.
Electricity Costs Are Rising Faster than Inflation
Missing out on the 30% solar tax credit isn’t the only cost of delaying solar. Every month you wait, you’re also paying more to the utility company, and those bills are only going up.
APS just applied for a 14% rate hike that would add $20 a month to the typical residential electric bill. That’s an extra $240 every year on top of what you’re already paying.
You need electricity, so the question to ask yourself is: would you rather give that money to the utility or put it toward solar panels so you can generate electricity yourself? You’ll never get money back from the utility. Every dollar you put into solar will come back to you through electric bill savings, and once you break even, your solar panels will be putting money into your pocket.
Ready to See How Much Solar Could Save You?
If you’re thinking about installing solar panels, now is the time. You’ll save 30% with the federal solar tax credit and an extra $1,000 with the Arizona state solar tax credit. You’ll also start saving money on your electric bills right away.
At SouthFace Solar & Electric, we help you maximize your savings. We install custom systems sized to your electricity usage, and many of our customers end up paying only the service charges on their utility bills.
If you want to see what the monthly savings could look like for you, reach out to us today. We’re happy to provide a free, no-pressure estimate based on your home and electricity usage.
