Federal Solar Tax Credit at Risk — Insights & Actions for 2025

Latest Developments Senate Softening Rooftop Solar Cuts Senator Kevin Cramer confirmed the Senate is working to adjust provisions that would have removed the 30 percent rooftop solar credit and subsidies for residential lease systems. He suggested the Senate’s revised approach may be a little more generous than the House version, aiming to phase out rather than immediately eliminate the credit. - Advocacy groups are pushing for a softer off ramp schedule to mitigate disruption to renewable investments and protect jobs. TVA of Broader Clean Energy Cuts - A House passed version of the OBBB, nicknamed Trump’s tax megabill, also fast tracks clean energy credit phase outs including rooftop solar, EVs, home upgrades, and hydrogen. Critics say it could add up to 160 dollars per year to household electricity bills by 2035. - Even Senate Republicans’ version is viewed as nearly as damaging. Sen. Ron Wyden warned it does almost 90 percent as much damage to clean energy incentives as the House bill. National and Regional Impacts - Reduced clean energy support could disincentivize investments, raise energy prices, threaten grid reliability and green jobs. - Economic models show notable risks to states like Texas — potentially 87 billion dollars in GDP loss and 120,000 job cuts by 2035 — highlighting consequences for solar heavy economies. Where Things Stand - House version: Ends solar credit plan on December 31, 2025. - Senate version: Seeks a phased elimination, possibly after approximately 180 days post enactment, but not yet finalized. - Congress is racing to wrap this up by July 4, ahead of expected signing. What You Can Do Now 1. Lock in solar installations now: Aim to have contracts, installations, and inspections completed by December 31, 2025 to secure the 30 percent credit. 2. Talk to your solar advisor: Confirm your inspection and interconnection deadlines so there’s no risk of delay. 3. Stay informed: Monitor Senate proceedings this summer; adjustments or amendments may affect timelines and credit availability. 4. Act quickly: With potential delays or softer phase outs, early action remains the best way to protect your investment. Hawaii Residents — Why This Matters Even More - High electricity rates make solar highly effective at controlling costs. - State credits (up to 35 percent) and reliable sunshine mean you’ll benefit from solar even if federal incentives are reduced. - Still, 2025 is almost certainly your last chance to claim the full 30 percent federal credit. Ready to Help Alternate Energy is prepared to fast track your project: - Free feasibility check and tax credit evaluation. - Guided installation timeline through inspection and interconnection. - Ongoing legislative updates and adjustments if the Senate softens the credit cliff. Final Thought Legislative changes could soften rooftop solar cuts, but uncertainty remains high. To maximize savings and avoid regulatory surprises, prioritize your solar project now while the 30 percent credit is still on the table.