If you've been waiting for solar prices to be slashed before making the switch, you may miss out on potential savings on a home solar system.
According to an updated report by EnergySage, federal tax credits could cover about $11,000 for a new solar system for homeowners in Virginia.
The scoop
EnergySage estimated that the average American household requires 11 kilowatts (kW) of solar energy to cover daily energy usage. Its marketplace data estimates a solar installation project of this size to cost about $20,552 after federal tax credits.
The available federal tax credit, courtesy of the Inflation Reduction Act, covers 30% of the cost of a solar system installation.
In Virginia, where the average cost of a solar system before incentives is about $37,326, the federal tax credit will save homeowners about $11,000, bringing the price down to $26,128.
Of course, the cost of solar installation projects will vary by solar provider and location. However, EnergySage anticipated that with the federal tax credit alone, you could be paying $17,238 on the low end and $23,235 on the high end for an 11kW solar installation project.
This federal tax credit, however, may not be around forever, as the Trump administration has discussed eliminating the IRA subsidies, including electric vehicle incentives.
The future of this law remains uncertain, requiring an act of Congress to change. It isn't getting any cheaper, so act now to save up to thousands of dollars on your new home solar system.
Use EnergySage's free tools to get quick solar installation estimates and compare quotes.
How it's helping
Going solar is one of the best investments a homeowner can make to save money on home energy while cutting down on planet-overheating pollution.
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The cost 💰 EnergySage determined that the average solar shopper breaks even on their solar system after 7.1 years, which means that homeowners can still enjoy up to 20 years of free or significantly lower-cost energy, based on the average lifespan of solar system batteries (25-30 years).
Solar also reduces our dependence on dirty energy sources, which, when burned, contribute to planet-overheating pollution. Solar is a cleaner and abundant alternative energy source that helps keep our planet cool.
The available federal tax credit makes the switch to solar less overwhelming for homeowners. Particularly, homeowners in Maryland, New York, Rhode Island, South Carolina, and Washington D.C. stand to save a lot on solar due to additional solar incentive programs.
What everyone's saying
Homeowners looking to take advantage of the federal solar tax credit are curious about how long they might have before it goes away.
Posting to the r/solar subreddit, one homeowner shared, "We are building a house very soon and we are hoping to add solar but if the tax credit goes away, we would like to find a way to do it before that happens."
One commenter noted that nobody knows for sure. However, "tax changes are always future dated. … So if it follows a normal timeline, something announced in 2025 would take effect in 2026."
Another commenter concurred: "You'll be fine if you finish the project in 2025."
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