Will the Solar Tax Credit Survive? Why 2025 Could Be the Year to Go Solar

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Brooklyn SolarWorks is a Gowanus-based solar design and installation firm serving New York City's homes and businesses.

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The federal solar tax credit has been a game-changer for homeowners considering the switch to clean energy, offering a generous 30 percent tax credit on the cost of installing solar panels. But as political winds shift, the future of this incentive faces uncertainty.

Currently, the 30 percent federal tax credit – a dollar-for-dollar reduction in your tax bill — often amounts to thousands of dollars. This incentive has helped drive remarkable growth in solar adoption. Currently, according to the Solar Energy Industry Association, over 7 percent of U.S. electricity comes from solar — more than six times its share a decade ago.

However, that progress can change dramatically. President Trump has threatened to roll back clean energy initiatives. During his campaign, he pledged to “rescind all unspent funds” from the Inflation Reduction Act, which currently supports these solar incentives.

Industry experts suggest 2025 could be a pivotal year for solar installation. With political uncertainty looming and installation slots filling up quickly, many homeowners are accelerating their solar plans rather than risking future changes to the incentive program.

Beyond the tax credit, other factors could affect solar costs. Proposed tariffs on imported solar equipment could drive up installation prices, adding another layer of complexity to the decision-making process for potential solar adopters.

While the long-term future of solar incentives remains unclear, what’s certain is that the current 30 percent tax credit offers substantial savings for homeowners ready to make the switch, along with other city and state incentives. Those considering solar installation might want to act sooner rather than later to secure these guaranteed benefits while they’re still available.

For Brooklyn homeowners, the message is clear: If you’ve been considering solar, 2025 might be the year to make your move while the generous federal incentives remain firmly in place.

Do you want to save $50,000 on electricity over the lifetime of your system?

Reach out to Brooklyn SolarWorks today.

[Photos via Brooklyn SolarWorks]