What is the ITC? Why Going Solar Still Makes Sense — And Why Acting Fast May Benefit You

For years, the federal solar Investment Tax Credit (ITC) has been one of the most powerful incentives for homeowners and businesses to switch to solar.

What Is the ITC—and When Is It Ending?

The ITC is a federal tax credit that lets you deduct 30% of the total cost of your solar system—including panels, inverters, installation, and battery storage—from your federal taxes. This is a dollar-for-dollar reduction in what you owe, not just a reduction in taxable income.

For example, if your solar system costs $25,000, the ITC allows you to reduce your tax liability by $7,500.

But this life-changing benefit won’t last forever:

• The residential ITC (Section 25D) expires on December 31, 2025. After that date, new homeowners will no longer be able to claim this 30% credit.

• For third-party–owned systems (like leases or PPAs, under Section 48E), eligibility extends until December 31, 2027.

• Large-scale or commercial projects must begin construction by July 4, 2026 and be placed in service by December 31, 2027 to qualify.

• 
  

1. Take Advantage of the ITC While You Still Can

Time is running out — if your system is installed by December 31, 2025, you qualify for a 30% tax credit. After that, the residential ITC disappears entirely — no gradual step-down, just gone.

2. Lock in Energy Savings That Grow Over Time

Solar panels reduce your electric bill every month. With the ITC, your return on investment is faster and your lifetime savings are even greater.

3. Beat Rising Utility Costs

Electricity rates keep going up. The sooner you switch, the sooner you start saving — and if you wait until after the ITC is gone, you’ll pay more upfront for the same system.

4. Stack Local Incentives for Maximum Savings

States, municipalities, and utilities often provide their own rebates and credits. Pairing those with the ITC before it ends gives you the biggest possible financial advantage.

5. Boost Your Home’s Value

Studies show homes with solar sell faster and for more money. Installing before the ITC expires lets you enjoy both the federal tax savings and the added property value.

6. Energy Independence & Backup Power

Adding battery storage gives you backup power during outages and reduces reliance on the grid. With the ITC covering 30% of the cost, this upgrade is far more affordable now than it will be after 2025.

7. Environmental Benefits That Last

Even once the ITC ends, solar will continue to reduce your carbon footprint and promote cleaner energy for decades. The environmental payoff never expires.

Final Thoughts

The ITC has been a game-changer for solar — but residential eligibility ends December 31, 2025. Going solar now means:

• Up to 30% federal tax savings

• The ability to stack state/local rebates on top

• Faster payback periods and immediate monthly savings

Waiting only means paying more later. Act fast, and you’ll maximize your savings while setting yourself up for decades of benefits.

Ready to See Your Savings?

At SLM Solar LLC, we make the process simple:

✅ Free, no-obligation solar proposal✅ Custom system design for your home✅ Clear breakdown of your ITC savings

👉 Request your free solar quote today and lock in your ITC benefits before December 31, 2025.