ACT NOW: 2025 Is the Last Year for the Full Solar Tax Credit

You Can Still Take Advantage of the 30% Rebate!

For homeowners who have been considering solar, 2025 has turned into a deadline. The Federal Residential Clean Energy Credit, more commonly known as the solar tax credit, currently covers a significant percentage of the cost of installing solar panels and batteries. That kind of savings can cut thousands of dollars off the cost of going solar. But time is running out! 

Congress has passed a budget bill that will eliminate the residential credit entirely after this year. That means systems must be installed before December 31, 2025 to qualify for the full benefit. Waiting could mean missing the single most effective financial incentive for solar adoption. Let’s take a closer look at what you need to know before the deadline arrives.

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What the Federal Residential Clean Energy Credit Covers

The credit was established to make renewable energy more attainable for everyday homeowners. When you install solar panels or add a battery system, 30% of the total cost, including equipment, installation labor, and even certain permitting fees, can be claimed as a dollar-for-dollar reduction on your federal income taxes. Unlike a deduction, which only reduces taxable income, this credit directly lowers the amount you owe, making it far more impactful.

You can file for the credit using IRS Form 5695, which is submitted with your annual tax return. The process isn’t complicated, but it does require accurate documentation of costs and installation dates. Summit Technology Group can help you by providing the paperwork you need for tax documentation, but we strongly recommend consulting a tax professional to make sure you’re truly taking advantage of this benefit.

Why 2025 Matters

The countdown has begun: homeowners have until December 31, 2025 to take advantage of the 30% Federal Residential Clean Energy Credit before it disappears. After that date, homeowners will no longer be able to claim the rebate on solar panel or battery installations.

This change has major financial implications. For many households, the tax credit reduces costs by thousands of dollars and makes solar and storage a smart and feasible investment. That means 2025 is not just the best time to act: it is the only year left to capture the full benefit.

Timing is Everything

Keep in mind that a solar installation isn’t something you can arrange at the last minute. Each project involves several steps: system design tailored to your roof and energy use, permitting through your local jurisdiction, approval from the utility, and finally, the installation itself. Depending on complexity and demand, this process can take anywhere from a few weeks to several months.

Now consider that many other homeowners will be rushing to schedule their projects before the December 31 deadline. Delays and backlogs are inevitable. Contractors, utility offices, and permit departments are likely to be overwhelmed as the year winds down. Starting as soon as possible gives you breathing room and ensures your system is installed before the cutoff.

One thing to keep in mind, however, is that this deadline only applies to residential systems. If you’re exploring solar for a commercial property and want to understand your options, it is best to contact Summit Technology Group for more details.

How to Claim the Credit

To receive the full 30% benefit, the key requirement is that your solar or battery system must be installed by December 31, 2025. After installation, your contractor will provide documentation of the project’s costs and completion date or a final invoice. You’ll then include this information on IRS Form 5695, which determines your exact credit.

Some people feel uncertain about handling the tax paperwork, and understandably so. After all, tax language can be intimidating. That’s why it’s best to consult a qualified tax professional, who can guide you through the filing process and ensure you receive the full credit you’re entitled to.

Expert Guidance Through a Critical Deadline

At Summit Technology Group, we’re not just another solar and battery installer. We provide end-to-end project management that covers design, permitting, and installation. This holistic approach means you don’t have to juggle multiple contractors or figure out solar installations on your own.

Equally important, starting a project with us now positions you ahead of the end-of-year rush. Our team is experienced in navigating local permitting processes, designing systems tailored to your home, and ensuring all deadlines are met. With new legislation creating uncertainty, working with an experienced partner is the safest way to guarantee your investment delivers the maximum benefit.

If you want to lock in the highest level of savings available, now is the time to act. Contact our team today to begin your solar project and guarantee your system is installed in time to claim the credit while it’s still available.