Quick Snapshot
| What’s ending? | 30% Federal Solar Tax Credit (ITC) |
| What is the ITC? | The Inflation Reduction Act is a tax credit that allows you to reduce the amount of income tax owed. |
| When does it end? | December 31, 2025 |
| Why is it ending? | The One Big Beautiful Bill, signed into effect on July 3rd, eliminates the tax credit for budget reconciliation. |
| Who qualifies? | Homeowners: Solar must be fully installed and inspected by 12/31/25. Businesses: Must have a signed contract in place by 12/31/25 to qualify for safe harbor. |
| What should I do? | Contact DC Solar Electric now to schedule your project and lock in the savings before it’s too late. |
What Is the Federal Solar Tax Credit (ITC)
The Federal Investment Tax Credit (ITC) gives homeowners and commercial businesses a powerful incentive to install solar energy. This 30% credit can significantly reduce the upfront cost of a solar system, and it applies to:
- Residential rooftop solar installations
- Commercial solar projects
- Battery storage, when installed alongside solar
For homeowners, time is critical. To claim the credit, the entire system must be designed, permitted, installed, and inspected by December 31, 2025.
For commercial projects, you must sign a contract by December 31, 2025, to safe-harbor your project and lock in the 30% credit. You’ll then have 3 years to complete construction.
What Missing the 30% Tax Credit Could Cost You
Let’s break down the difference for homeowners:
| Scenario | With 30% Tax Credit (Before Dec 31, 2025) | Without Tax Credit (After Dec 31, 2025) |
|---|---|---|
| Solar System Cost | $35,000 | $35,000 |
| 30% Federal Tax Credit | –$10,500 | $0 |
| Final Out-of-Pocket Cost | $24,500 | $35,000 |
That’s a $10,500 difference. Depending on system size, businesses can save tens or even hundreds of thousands.
Why You Need to Act Now
Permitting backlogs, utility approvals, and scheduling delays can all push your project timeline. If you wait until fall or winter to start, you may miss the residential install window altogether.
For businesses, getting a signed contract by the deadline is enough to lock in your 30% credit — but the clock is ticking.
How DC Solar Electric Can Help
At DC Solar Electric, we make it easy to go solar with:
- Fast-track project timelines
- Expert permitting and utility coordination
- Transparent quotes and tax credit documentation
- Custom ROI forecasts for homeowners and commercial clients
- Battery storage options to boost your system’s value
Let’s Lock In Your Solar Savings Before It’s Too Late
The 30% tax credit is a major opportunity, but it’s not going to last. Whether you need a full commercial install or a residential rooftop system, now is the time to act.
Get your project on the calendar now to guarantee your place in line before 12/31/25 and protect your savings.