Update as of 7/10/2025: Tax Credit Ends this year for Residential Properties
Despite the solar industry’s best efforts to warn lawmakers of future losses, the bill has turned into law. Residential and commercial property owners only have a few months left to go solar and still access the solar tax credit.
Update as of 06/03/25: Urgent Action Needed
The “One Big Beautiful Bill” has officially passed the U.S. House proposes ending the 25D solar tax credit for residential purchases and excluding leased systems from the 48E credit by December 31, 2025.
If passed, this could severely impact the rooftop solar industry—cutting jobs, hurting Texas manufacturing, and making solar less affordable for homeowners. The Senate aims to pass the bill by July 4, so now is the time for the solar community to speak up.
Defend Residential Solar: Here’s How You Can Help
The future of America’s residential solar industry is under serious threat — and now is the time to take action. Whether you’re a solar business owner, an industry professional, or a supporter of clean energy, your voice can make a real difference. Here’s how you can get involved and help protect solar jobs, innovation, and progress:
1. Meet with Your Elected Officials
In-person conversations with lawmakers are one of the most powerful ways to advocate for residential solar. Use the “Resi Solar Meeting Instructions & Talking Points” to request a meeting and prepare your message. Not sure where to go? Use Find Your Members in the US Congress to locate your representatives and their local offices.
2. Join the Residential Solar Lobby Day – June 17
Mark your calendar for June 17 and be part of a nationwide effort to show up for solar in Washington, D.C. Sign up June 17 – Residential Solar Lobby Day to participate in Residential Solar Lobby Day and meet face-to-face with lawmakers to share your story.
3. Send a Letter from Your Business
Show Congress that solar supports real jobs and real companies.
Download and customize this fillable letter template to share your company’s perspective. Be sure to have it signed by company executives and/or employees. Deliver it in person during your meeting if possible — it’s far more powerful than an email. If you can’t be there in person, email the letter to your Senator’s DC staff
4. Make Noise on Social Media
Amplify the message online and help others understand what’s at stake. Use our Social media guide and content from “America’s Solar Industry is Under Threat” to post facts, quotes, and personal stories. Every share, like, and tag increases awareness and pressure on lawmakers.
5. Speak Out in the Media
Your voice matters — and the media wants to hear it. Write an op-ed, submit a letter to the editor, or share your story on video. Contact [email protected] if you’re interested in getting involved.
6. Stay Involved and Informed
There are more ways you can plug in and stay active:
- Join SEIA’s Monday organizing calls to get updates and coordinate action.
- Contribute to the Save Mainstreet Solar Campaign to support ongoing advocacy
- SEIA House bill analysis to understand what’s at stake
- Visit Defend Solar Energy for the latest news, resources, and tools
We’re at a turning point — and your support can shape the future of solar in America. Let’s stand together to protect clean energy, good jobs, and the solar businesses that power our communities.
The solar tax credit incentive along with many other incentives within Biden’s clean energy bill are up on the chopping block. Congress has proposed the “One, Big, Beautiful Bill” to end the Section 25D residential clean energy credit by December 31, 2025 – nine years ahead of its initial expiration date.
Currently the solar tax credit helps reduce the overall cost for homeowners going solar by 30% of the total cost. The tax credit was originally designed to gradually reduce after 2032 to 26% in 2033 and then finally 22% in 2034. Completely removing the Investment Tax Credit (ITC) would make going solar less affordable for homeowners which would likely further disrupt the solar industry.
The Speaker of the House, Mike Johnson, said he expects to pass the entire package by May 26th, 2025 (Memorial Day) and have it on the President’s desk by July Fourth. However, some Republican House members refuse to vote for the bill as the budget cuts do not go far enough. Furthermore, five Republican House Budget Committee members on Friday moved to block the bill from even reaching the floor.
Bipartisan House and Senate support for certain energy tax credits suggest potential pushback to the proposed elimination and likely further delays. As of May 19, 2025, it’s unclear whether the pushback will be in support of the residential solar tax credit or not, however the program has a long history of being a bipartisan House and Senate decision.
What Happens Next
The bill is getting passed around between House committees and has not yet advanced to the full House nor the Senate, so it still has a long way to go. If it passes the House and Senate, it will then need the President’s signature to become law. The Speaker of the House still expects the bill to pass by Memorial Day.
Affects of losing the Solar Tax Credit
The residential solar tax credit has created thousands of jobs, increase domestic manufacturing, lowered upfront costs, and made energy more available to all income tax payers. To remove the ITC would put all that at risk. If you’re against the removal of the solar tax credit and other clean energy programs, make your voice heard. Go to https://solarpowersamerica.org/campaign/defend-american-energy/ to notify your elected officials.
