Homeowners and businesses have a critical, rapidly approaching deadline to take advantage of the 30% federal solar tax credit. After this date, the Residential Clean Energy Credit will be eliminated, and the Clean Energy Investment Tax Credit for commercial projects will be subject to new restrictions and early phase-out. All Energy Solar Inc. is urging people to act now to ensure their projects are completed in time to qualify for these significant savings.
The recent “One Big, Beautiful Bill Act” abruptly cut short the federal solar tax credit, which was previously set to continue through 2034. This change creates a compressed timeline for those interested in investing in solar energy. For homeowners, this means a potential savings of an average of $9,000 will vanish in 2026. Businesses also face a limited window to capitalize on the full credit for renewable energy projects.
“The phase-out of this federal tax credit is a big shift—not just for the solar industry, but for any homeowner or business thinking about going solar,” said Ryan Buege, Vice President of Sales and Marketing at All Energy Solar. “The window is closing, but there’s still time to lock in the full value if you act now. It may be years before solar becomes this affordable again.”
Typical installation timelines can span several months due to site design, permitting, and utility coordination. All Energy Solar encourages anyone considering solar to start their project now to maximize savings and avoid missing out on current incentives.
“From your first consultation to system activation, going solar takes time—especially with permitting and utility approvals,” Buege added. “Our team is experienced at navigating these local processes, but as demand surges, there will come a point where we simply can’t guarantee new projects will qualify under the current incentive, especially for residential solar.”
For businesses switching to solar, the changes to the tax credit present a more nuanced, though still urgent, timeline. While the general elimination date for the Clean Energy Investment Tax Credit is December 31, 2027, projects that begin construction by July 4, 2026, can still qualify for the full 30% credit, provided they are placed in service within four years. Projects beginning construction after July 4, 2026, must be placed in service by December 31, 2027, to receive any credit. Furthermore, projects beginning construction after December 31, 2025, will face new “Foreign Entity of Concern” (FEOC) restrictions, requiring a certain percentage of components to be sourced from non-FEOC manufacturers to qualify for the credit.
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