Congress Proposes Early End to the 30% Solar/Battery Tax Credit

Kyle Ritland Marketing and Customer Experience
May 15, 2025
2 min read

This week, lawmakers in the U.S. The House Ways and Means Committee proposed language to significantly roll back the 30% federal tax credit for residential solar and battery storage systems beginning in 2026 —years ahead of the schedule that received bipartisan approval in the 2022 Inflation Reduction Act. Here's how you can help.

Under current law, homeowners can claim a 30% tax credit for qualifying solar and battery installations through 2032. The new proposal would terminate this benefit at the end of 2025, potentially slashing homeowner savings by thousands of dollars per system. 

This proposal is still working its way through Congress and must pass both chambers before becoming law—but this language alone signals the largest shift backward in clean energy policy yet. 

While we can’t predict the future, it’s important to remember that going solar is a process. From system design and permitting to installation and final commissioning, the full timeline can take several weeks to months depending on project complexity.

If the proposed legislation moves forward, 2025 could be the final year to claim the full 30% federal tax credit for residential solar and battery storage. High demand as the deadline approaches will likely crowd installation calendars. To qualify, systems must be fully installed and commissioned by year-end—so planning ahead is critical.

What we do know for certain is that energy costs are rising. Arizona’s longer, hotter summers and a growing population are placing increasing strain on our electric grid. The cost of upgrading our grid infrastructure will ultimately fall on ratepayers. Adding solar and batteries to your home is the only alternative you have. 

If you are considering adding solar or battery, secure your 30% tax credit now—and protect yourself from future rate hikes and power outages. 

Here's how you can help:

Send a short email to members of the House Ways and Means Committee urging them to preserve Section 25D in any final budget bill. To make it easy, just copy the message below and send it to the emails provided. You are free to alter as you see fit, or send it as is. 

Step 1: Copy this subject line:
Extension of the residential energy tax credit Section 25D

Step 2: Copy and personalize this message

Dear [Congressional Staff Name or Committee Member],

My name is [Your Full Name], and I’m a homeowner in [Your City], Arizona. I’m reaching out with deep concern about a provision in the recent House Ways and Means Committee budget draft that would eliminate the federal residential energy tax credit (Section 25D) at the end of this year.

This credit has been essential in helping families like mine invest in solar and battery storage—technologies that lower utility bills, provide critical backup during grid outages, and contribute to a cleaner energy future.

Eliminating the residential tax credit so abruptly would make it far more difficult for middle-class families to afford these systems—resulting in higher energy costs and fewer options for reliable backup power. Worse still, without Section 25D, homeowners would lose the ability to own their solar systems outright. Only third-party leasing companies—who retain access to the commercial tax credit under Section 48E—would be able to continue benefiting from federal support. This undermines homeowner choice and restricts access to the benefits of clean energy ownership.

While the current bill proposes a complete sunset of Section 25D after 2025, the commercial credit (Section 48E) would continue with a fair, gradual phase-out through 2032. I respectfully urge you to give homeowners the same consideration by extending Section 25D on a parallel timeline.

Please stand with American homeowners by preserving our ability to invest in solar, lower our energy costs, and protect our families from power outages—on our own terms.

Sincerely,
[Your Full Name]
[Your City], AZ

 

Step 3: Email your message to:

  • John.Quinn@mail.house.gov
  • Annaclaire.stietenroth@mail.house.gov
  • Alex.fink@mail.house.gov
  • Gabbi@mail.house.gov

If possible, please send your email within the next 24 hours. Timing is critical as decisions are being made right now.

 

Sources: 

PV Magazine: House proposed budget cuts clean energy tax credits: An industry reacts

Rhodium Group: Ways and Means Brings the Hammer Down on Energy Credits

Electrek: The House Draft Budget Kills the 30% Residential Solar Tax Credit

About the Author

Kyle Ritland Marketing and Customer Experience

After working in technology marketing throughout the Pacific Northwest and Silicon Valley for more than 20 years, Kyle opted to follow his heart and focus his talents in solar energy.

As the head of Marketing at Sun Valley Solar Solutions, Kyle works hard to demystify the ever-changing solar landscape in Arizona and across the country. He especially enjoys helping people separate fact from fiction by presenting solar transparently and accurately, rather than relying on hype or deceptive marketing tactics that are far too common with some solar companies.

When not touting the benefits of solar, encouraging his friends to opt for paper over plastic, or growing his own vegetables, Kyle is generally found hiking with his pointer Bravo or preparing a home-cooked meal for friends.

“If you truly understand how solar works it’s easy to see through the gimmicks. The opportunity for savings is very real when you have the correct information”