The 30% federal residential solar tax credit (Section 25D) ends after this year. To qualify, your system must be fully installed by December 31, 2025. Schedules are already filling up across the Western Slope, so it’s important to take advantage of this incentive sooner, rather than later.
Why Is the Solar Federal Tax Credit Ending?
Congress passed the One Big Beautiful Bill Act (H.R. 1) this summer, which terminates several clean-energy incentives, including the residential 25D credit, after 2025. The IRS has since posted guidance confirming that no credit is allowed for expenditures after Dec. 31, 2025.
Local Ripple Effects (Reported by KJCT8)
KJCT8 interviewed our own General Manager, John McClain, who noted three immediate impacts of the federal solar tax credit ending for Grand Junction residents:
Time constraint: Projects must be completed by year-end to capture the 30% credit.
Supply chain + scheduling: Components and crews are tightening, so experienced and reputable installers’ calendars are filling fast.
Shop smart and shop local: Get multiple quotes, choose a local team, and ensure your installer can deliver by the deadline.
👉 See the KJCT8 article about local impacts from the federal solar tax credit ending.
What Homeowners Should Do Now
1) Book a site visit ASAP. An on-site assessment locks in design, permitting, and interconnection timelines—critical steps before installation day. (Permitting and utility approvals can add weeks.)
2) Verify “installed by” language. Make sure your agreement specifies a target installation date well before Dec. 31, 2025.
3) Compare quotes apples-to-apples. Look at total system cost, production estimates, equipment warranties, and contractor track record, not just price.
4) Talk to your tax pro. Everyone’s tax situation is different; confirm your eligibility to claim 25D this year.
Fast FAQs for the Federal Residential Solar Tax Credit
Q: Do I need my solar system installed by Dec. 31, 2025 to get 30%?
A: Yes—projects must be placed in service by 12/31/2025 to claim the 25D credit.
Q: Are local installers booked up?
A: Many are accelerating schedules due to the deadline and supply constraints as homeowners try to finish before year-end.
Q: Can I sign a contract now, install in 2026, and still get the 30%?
A: No. In most cases the credit depends on when the system is placed in service (installed), not when you sign. Aim for installation well before the deadline and confirm timing in your agreement.
Q: Do batteries qualify the same way as solar panels?
A: Generally, home batteries installed with your solar system are treated the same for the federal credit. If the credit ends, the battery portion is affected too. Ask your tax professional about your specific setup.
Q: What about other solar credits?
A: Utility-scale and business incentives were also revised with different timelines; this post focuses on the residential solar federal tax credit for homeowners. Check with your CPA for non-residential scenarios.
Contact SolarWorks for the Best Solar Panel Service
When you’re ready to take advantage of these federal tax credit savings, contact Solarworks.
We’re a local, Mesa County team focused on honest work and dependable, consistent service. We focus on designing the best systems for each homeowner without overcharging or adding anything the customer does not need. If you want to claim the 25D tax credit, we recommend scheduling your assessment as soon as possible.
To get started, contact us for a FREE quote today.