🛑 The End of the 30% Federal Solar Tax Credit (Section 25D): Why You Must Act Before It’s Too Late
If you’ve been considering solar for your home in New Jersey, now is the time to act — because the most valuable financial incentive in residential solar history is about to disappear.
⚠️ What’s Happening?
Congress is actively moving to terminate the Section 25D Residential Clean Energy Credit, commonly referred to as the 30% federal solar tax credit, by the end of 2025. A bill already passed in the U.S. House proposes to cut the credit earlier than originally planned. And if it becomes law, homeowners who haven’t signed a contract and completed their system by the deadline could miss out entirely.
The proposed legislation gives homeowners until December 31, 2025 to install and activate their systems — but you must sign your solar installation contract before August 31, 2025 to ensure enough time for permitting, utility approval, and installation before the cutoff.
💵 What Is the 30% Solar Tax Credit (Section 25D)?
The 30% Residential Clean Energy Credit (Section 25D) allows homeowners to deduct 30% of the cost of their solar energy system from their federal income taxes. This includes all system components, labor, permitting, and even solar batteries.
Example:
If your solar system costs $25,000, the federal tax credit gives you $7,500 back on your tax return. That’s real money — not a deduction off your taxable income, but an actual reduction in the taxes you owe.
🧨 Why Is This a Big Deal?
The 30% tax credit has made solar affordable for millions of homeowners across the U.S. Since it was introduced in 2006, the credit has driven massive growth in the solar industry and helped homeowners cut electric bills by thousands of dollars over the life of their systems.
Without this incentive, the cost of going solar increases by 30% overnight — making it harder for homeowners to justify the investment and shrinking your long-term savings.
🕒 Why August 31, 2025 Is the Real Deadline
Even though the credit ends on December 31, 2025, you can’t wait until then. Here’s why:
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Permits and Approvals Take Time:
In New Jersey, solar permitting can take 4–8 weeks or more, depending on your township and utility. -
Installer Capacity Will Be Maxed Out:
As the deadline approaches, solar installers will be flooded with last-minute requests. Many will stop accepting new jobs in early fall to avoid risking installations that won’t be completed in time. -
Delays Are Common:
Supply chain issues, utility interconnection bottlenecks, weather delays, or paperwork errors can all slow down your project.
To protect yourself from missing the deadline, Green Sun Energy Services is encouraging homeowners to sign solar installation contracts no later than August 31, 2025.
🔥 Why Going Solar Still Makes Sense — Especially in New Jersey
Even without the tax credit, solar makes financial sense for many homeowners — but with it, the value is undeniable.
✅ New Jersey Benefits Include:
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Retail Net Metering: Earn credits for excess power sent to the grid
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SuSI Performance-Based Incentive: Receive monthly payments for the energy your system produces for 15 years
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No Sales Tax on Solar Equipment
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No Property Tax Increase from the added home value
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Electricity Rates Are Soaring: NJ utility rates are increasing by as much as 20% on June 1, 2025, making solar savings even more critical
When you combine all these benefits with the 30% federal tax credit, you can reduce your monthly electric bill, gain energy independence, and protect your household budget from future rate hikes.
✅ What You Need to Do Right Now
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Schedule a free consultation with Green Sun Energy Services
We’ll assess your home and energy usage to design a custom solar solution that maximizes your savings. -
Sign your solar contract before August 31, 2025
This gives us enough time to secure permits, schedule installation, and ensure your system is fully operational before the December 31 deadline. -
Claim your tax credit when you file your 2025 taxes
We’ll help you with the documentation so you can claim the full 30% credit using IRS Form 5695.
🏡 Final Thought: Don’t Wait Until It’s Too Late
We’ve seen it before — when incentives end, demand surges, and homeowners who waited too long get left behind. Don’t let that happen to you.
This may be the last year ever to claim the full 30% federal solar tax credit.
If you’re ready to reduce your electric bill, protect your home from rising energy costs, and take control of your power, now is the time to act.