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Editor’s Note (Updated July 2025):
Congress has officially passed the “Big Beautiful Bill,” which brings significant changes to the federal solar tax credit for homeowners. The 30% Residential Clean Energy Credit now ends December 31, 2025, without a phase-down. Below, you’ll find exactly what this means for you — and what to do now if you still want to lock in your savings.
What is the Federal Solar Investment Tax Credit (ITC)?
The federal solar Investment Tax Credit (ITC), made available through the Inflation Reduction Act, allows homeowners to deduct 30% of the cost of a solar energy system from their federal taxes. This credit:
✅ Applies to both residential solar energy systems and battery storage
✅ Saves homeowners thousands of dollars — often $10,000 or more
✅ Has helped millions of families access clean, affordable energy for less
At GreenSpark, we’ve seen firsthand how transformative this has been for New Yorkers. Here’s what the credit has meant for three of our residential customers:
The 30% Residential Solar Tax Credit: What’s Changed
The federal solar tax credit — officially called the Residential Clean Energy Credit (Section 25D) — has helped millions of homeowners go solar since 2005. Under the Inflation Reduction Act (IRA), it was originally extended through 2034 with a gradual phase-down.
But under the new “Big Beautiful Bill,” that timeline has been cut short:
✅ The 30% tax credit will now expire for good on December 31, 2025.
✅ There is no phase-down — if you miss the deadline, you lose the credit entirely.
Can You Still Get the Credit If You Finance or Lease?
Yes — homeowners who choose third-party options like leases or power purchase agreements (PPAs) can still access savings through the related commercial tax credits (Section 48E). So if owning outright isn’t right for you, there are still options to save — but they work differently:
With leases and PPAs, the tax credit goes to the solar company that owns the system.
In return, you pay little to no upfront cost but have a long-term contract (typically 20–25 years) with lower but steady energy savings.
What About Batteries and EV Chargers?
✅ Batteries: Standalone battery storage systems remain eligible for the Residential Clean Energy Credit through the same December 31, 2025 deadline.
✅ EV Chargers: The separate tax credit for installing a charging station at your home will expire June 30, 2026. So if you’re thinking about going electric, now’s the time to plan ahead.
Why Act Now
With utility rates rising 50%+ year-over-year and more volatile weather patterns, residential solar and battery backup have never been smarter investments in New York. With the 30% federal credit still in place—and additional NYSERDA and state tax incentives—New Yorkers can currently offset up to 50% of the cost of going solar. But that window is closing.
The bottom line? If you’ve been considering solar for your home, now is the time to move forward. After two decades of bipartisan support, this credit is ending — but your chance to claim it is not gone yet.
GreenSpark is here to help you understand the new rules, compare options, and make sure you don’t miss out.
GreenSpark is Here to Help
We’re a NYSERDA Gold Quality Installer with over two decades of experience helping New Yorkers make the switch to clean, affordable energy.
Whether you’re just starting to explore solar or you’re ready to lock in your incentives, our local team is here to guide you — with transparency, experience, and a mission-driven approach you can trust.
