You’ve Heard the News… Now What?
If solar has been on your radar, now is the time to act. This is the final full year to claim the 30% federal solar tax credit, known as the Investment Tax Credit (ITC). Due to the updates in the new Big Beautiful Bill, signed into law on July 4, 2025, the deadline has changed.
The short version:
You can still get 30% back on your solar system costs through your federal tax return, only if your system is paid for in 2025. No step-down. No extension announced. That is why timing matters more than ever.
What Is the Federal Solar Investment Tax Credit (ITC)?
The solar tax credit, officially called the Investment Tax Credit (ITC), allows you to deduct 30% of your system cost from your federal taxes. This is not a rebate or a utility discount; it directly reduces what you owe on your tax return.
Here is what that could look like:
- $18,000 system = $5,400 tax credit
- $24,000 system = $7,200 tax credit
- $30,000 system = $9,000 tax credit
These savings apply whether you pay upfront or use solar financing, which means the credit is accessible to many homeowners across North Carolina.
Why the Timeline Changed (and What It Means for You)
Before July 2025, the ITC was set to phase out gradually over the next several years:
- 26% in 2033
- 22% in 2034
- 0% in 2035 and beyond
That plan is no longer in effect.
Now, the full 30% credit ends December 31, 2025. No step-downs. No second chances. To qualify, your system must be either:
- Fully installed and operational by December 31, 2025, or
- Paid for in 2025 and installed in 2026 under the updated law
To stay on track, we recommend getting on the schedule by October 2025 to avoid supply chain delays, permitting hold-ups, or weather-related backups.
Still Thinking It Over?
Many homeowners are taking action. Here is what people find helpful:
- You do not need to pay for everything upfront; flexible financing is available.
- Monthly payments are often close to or even less than what you already pay your utility.
- You will qualify for the 30% credit if you finance your system.
- If you are a Duke Energy customer, you may also be eligible for the PowerPair program, which can add up to $9,000 more in incentives.
We Can Help You Make the Most of It
We are here to simplify the process and help you take full advantage of the solar incentives available. Whether you are ready to install or still exploring your options, our goal is to make solar simple for you.
Call us at (919) 459-4155 or schedule a consultation here.
The 30% solar tax credit has helped thousands of North Carolina homeowners make the switch. If you do not want to miss out, this is your year.
