Lock in the Federal Solar Tax Credit Before It’s Gone

A residential home with solar panels mounted on the roof

The 30% Solar Tax Credit Is Expiring. The Best Time to Go Solar Is Now.

A new federal law is ending the 30% federal solar tax credit on Dec. 31, 2025, for residential homeowners. Businesses and farmers also face new critical deadlines to get their projects online over the next 2-4 years.

That means there has never been a better time to go solar than now

Don’t miss the chance to save thousands of dollars on your solar energy system! Contact 1 Source Solar today to see how you can lock in your savings.

The Clock Is Ticking: Get a Free, No-Obligation Quote Today!

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What You Need To Know About the Expiring Solar Tax Credits:

For Residential Homeowners:

  • Residential Tax Credits will end Dec. 31 of 2025
  • Your system must be installed and “placed in service” by this deadline to qualify.
  • IMPORTANT: Due to the tight timeline, 1 Source Solar is currently booked for all new residential projects that could be guaranteed for completion before the end of 2025. Please contact us to talk more about other tax incentives your project may qualify for, or to secure a spot for 2026.

For Commercial Businesses, Ag Producers & Non-Tax-Paying Entities:

  • Projects started between now and July 4, 2026, must be placed in service by Dec. 31, 2029
  • Projects started AFTER that date must be placed in service two years sooner by Dec. 31, 2027.
  • TAKE ACTION: Early planning is key to meet these deadlines. Contact us to plan your project now.

Understanding the New Foreign Entity of Concern (FEOC) Guidelines:

  • Any solar project that begins construction after Dec. 31, 2025, will also be subject to new Foreign Entity of Concern (FEOC) provisions. These provisions will place tighter restrictions on materials sourced from certain countries. These will likely cause supply chain issues and increased component cost.
  • Projects that begin after July 3, 2026, will be subject to even stricter FEOC provisions, causing additional supply chain and component cost issues.

The Financial Impact: Understanding the 30% Solar Tax Credit

Recent federal legislation, signed July 4, 2025, is ending the federal solar tax credit for solar energy projects over the next 4 years. 

While there are other incentives available for installing solar, the federal tax credit is the largest and most impactful for homeowners, businesses, farmers, and others. It provides a dollar-for-dollar credit of 30% of the cost of the following from taxes:

  • New solar panel systems
  • Energy storage devices
  • Installation expenses

For a homeowner with a $30,000 residential solar system, missing the December 31, 2025, deadline would mean losing $9,000 in tax credits. That’s a direct, significant increase in your net cost.

There’s Still Time To Get These Benefits. Here’s How 1 Source Solar Can Help.

1 Source Solar is a turnkey solar installation company that handles your project from planning to construction to maintenance. We install solar panels for homeowners, businesses, farmers, and many others across the Midwest. 

We know your project needs to be placed in service quickly. That’s why reaching out to us as soon as possible is the best way to see how we can get your project placed in service by the time it’s needed. 

Our experts know how to work efficiently to ensure we design the right solar panel system for you while streamlining the process. 

Important Note: Our team will do everything within our power to complete your solar projects as fast as possible and help you capture your full benefits. However, due to several factors out of our control during the installation process, it’s important to note that we cannot guarantee completion to meet the defined federal tax deadlines. Please contact a tax adviser for the best financial guidance.

Frequently Asked Questions

For Homeowners: Unfortunately, the time has passed to ensure you will receive the federal tax credit for a new residential project. These projects must be “placed in service” by Dec. 31, 2025. This rapid turnaround time means that we are fully booked for residential solar projects that will be complete in time to qualify.

For Businesses, Farmers, Utilities, and Nonprofits: Yes, there is still time, but the timeline is still very tight. Projects must be placed in service by the end of 2027. If work has already begun on a project before July 4, 2026, the deadline is two years longer: Dec. 31, 2029.

“Placed in service” is a term used by the Internal Revenue Service to describe a system that is eligible for tax credits. “Placed in service” means that installation is complete and the solar panel system is able to generate electricity. Homeowners, businesses, farmers, and others can claim the tax credit for the tax year that their system is placed in service.

No. If your solar panels are fully installed and placed in service, then the new law will not take away any tax credits that you have earned. 

Ready To Lock In Your Solar Savings? Talk With 1 Source Solar Today.