Much has been made about the federal solar tax credit expiring at the end of 2025, with now being an opportune time for homeowners to save thousands of dollars on solar panel installation.
But, as EnergySage — one of the nation's leading objective solar-industry sources — pointed out, that only applies if you owe enough on your taxes to take advantage of that credit.
For millions of others, including retirees, their solar benefits will remain the same.
"No solar tax credit? No problem," EnergySage writes in an analysis. "Most homeowners can still save big."
If any company would know, it's EnergySage, which provides nuanced, objective insights into the rooftop solar industry. It even provides free tools that allow homeowners to quickly and easily compare solar installation quotes and find the right company and right price for their project.
As the company noted in the analysis, the federal tax credit can't be used if someone's tax bill has already been reduced to zero. This makes it not particularly useful for retirees and other people on fixed incomes, or those who already take advantage of several deductions and credits.
Instead, their true solar savings will come in the form of lower monthly energy bills. By generating their own electricity, homeowners can not only reduce their reliance on planet-polluting dirty fuels, but also bring their energy bills way down — sometimes near zero.
"On average, an EnergySage solar shopper who goes solar in 2025 will break even in about seven years. Without the federal tax credit, that same system on the same roof would take just over 10 years to pay for itself," the analysis says. "While that's a longer timeline, it still represents a solid return for homeowners."
Save $10,000 on solar panels without even sharing your phone number Want to go solar but not sure who to trust? EnergySage has your back with free and transparent quotes from fully vetted providers that can help you save as much as $10k on installation. To get started, just answer a few questions about your home — no phone number required. Within a day or two, EnergySage will email you the best local options for your needs, and their expert advisers can help you compare quotes and pick a winner. |
Many states and utilities also offer their own incentives that can bring a solar panel system's price down, even without federal credits.
EnergySage's free mapping tool allows homeowners to see not just what incentives are available, but also the average cost of solar installation in each state.
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What's the biggest concern you'd have about getting solar panels? Click your choice to see results and speak your mind. |
The cost 💰 If that upfront cost still seems prohibitive, leasing solar panels could be a viable alternative. Palmetto's LightReach leasing program lets homeowners reduce their reliance on the grid, increase renewable energy use, and lock in low energy rates, all for little or no money down.
And whether you own or lease solar panels, pairing them with other electric appliances, such as energy-efficient heat pumps, can bring those monthly costs down even further. Mitsubishi's services make it easy to compare quotes from various installers to find the right heat pump for your home and budget.
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