⚠️ URGENT: Go Solar in 2025 Before the 30% Tax Credit Disappears and NJ Electric Rates Skyrocket
Major changes are now official — and they could cost New Jersey homeowners thousands of dollars if they don’t act immediately.
On July 1, 2025, the Senate passed the “One Big Beautiful Bill,” which terminates the 30% Federal Solar Tax Credit (Section 25D) for residential systems placed in service after December 31, 2025 — nearly a decade earlier than originally planned.
Meanwhile, NJ utilities have confirmed electric rate hikes of 17–20% as of June 1, 2025, further driving up household energy bills.
🔥 What the New Law Means for Homeowners
Effective immediately, the legislation:
✅ Ends the 30% federal solar tax credit after December 31, 2025
✅ Requires your system to be fully installed and operational by that date
✅ Eliminates all tax benefits for leased systems or solar PPAs
✅ Provides no phase-out period and no replacement incentives
💸 Why This Matters for New Jersey Residents
This isn’t just tax policy — it’s about your energy security and financial future.
➡️ NJ utility rates already rank among the highest in the country
➡️ Starting June 1, 2025, your bill already jumped by another 17–20%
➡️ Without the 30% credit, solar becomes significantly more expensive
But there’s still time to lock in your savings — if you act now.
🏡 NJ Solar Incentives Still Available in 2025
✅ 30% Federal Tax Credit (until 12/31/25)
✅ SuSI Program: $85 per SREC for 15 years
✅ 0% Sales Tax on solar equipment in NJ
✅ Property Tax Exemption for system value
✅ Retail Net Metering (get full credit for extra solar)
These programs can slash your upfront costs and maximize long-term savings — but only if your system is installed and approved before the end of 2025.
⏳ Time Is Running Out
Permitting backlogs, utility delays, and high demand mean that December 31, 2025 will come faster than you think. Once the credit is gone, it’s gone — and New Jersey families could be left paying thousands more for the same system in 2026.
✅ How Green Sun Energy Services Can Help
We’ve helped hundreds of NJ families take control of their energy — and we’re here to help you do the same before the window closes.
Green Sun Energy Services will:
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Design a custom solar system for your home
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Maximize your incentives and financing
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Fast-track your permitting and installation
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Ensure your system is fully operational before the deadline
✅ How NJ Homeowners Qualify for the 30% Federal Solar Tax Credit in 2025
Important Disclaimer
Green Sun Energy Services, LLC is not a Certified Public Accounting (CPA) firm and does not provide tax, legal, or financial advice. The information below is for informational purposes only and should not be relied upon as tax advice. Please consult a qualified CPA or tax professional for guidance specific to your situation.
Bottom line: To claim the 30% Residential Clean Energy Credit for 2025, a homeowner must own a qualifying solar system and have it placed in service by December 31, 2025. After that date, the credit ends under the One Big Beautiful Bill Act (OBBBA).
What “Placed in Service” Means (IRS Definition)
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Under IRC §25D (the homeowner credit), an expenditure is considered made when the original installation is completed.
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If solar is part of a new construction, the expenditure is treated as made when the home’s original use begins.
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Practically speaking, the system must be fully installed (and the home occupied, if applicable) on or before 12/31/2025.
IRS General Rule
“Placed in service” means the property is ready and available for its specifically assigned function — not just purchased.
For grid-tied solar PV systems, this means the system is installed and capable of producing electricity.
DOE’s Interpretation
According to the U.S. Department of Energy, the credit applies when the system is “installed and producing electricity” for the homeowner, which aligns with the IRS’s standard.
Do You Need Utility PTO (Permission to Operate)?
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The tax code does not require a PTO letter to qualify.
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The legal test is that the system must be ready and available for use, meaning fully installed and functional.
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Best practice: Keep PTO and/or final inspection sign-offs as proof for IRS audits.
Ownership Rules (No Leases for Homeowner Credit)
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Section 25D applies only if the homeowner owns the system — either through cash or loan.
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If you lease the system or sign a Power Purchase Agreement (PPA), you cannot claim the 30% credit.
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In these cases, the third-party owner claims the incentive.
Deadline Set by OBBBA
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The Residential Clean Energy Credit (§25D) is terminated for expenditures made after December 31, 2025.
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There is no phase-out in 2026 — the credit drops directly from 30% to 0%.
Homeowner Checklist ✅ (Keep for Your Records)
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Sign your contract and install a qualifying solar PV system you own.
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Ensure the system is completed, operational, and producing power by 12/31/2025.
Save your PTO, inspection reports, and commissioning documents. -
File IRS Form 5695 with your 2025 tax return and keep your invoices, spec sheets, and certifications.
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If your tax liability is less than the credit amount, any unused credit can be carried forward under IRS rules.
Authoritative Sources
📞 Don’t Wait — Schedule Your Solar Consultation Today
2025 is your last chance to go solar with the 30% federal tax credit.
Call us today at 732-410-7818 or visit GreenSunNJ.com to schedule your free solar consultation.
Let’s get your system installed, approved, and saving you money — before the 30% credit vanishes and your electric bill spikes.
Empower Your Energy Independence® with Green Sun Energy Services.