With federal incentives for many green projects ending soon, installing solar panels now can save you thousands of dollars. Solar comparison shopping marketplace EnergySage recently took time out to explain how homeowners can take advantage of federal tax credits before they expire.
What is the solar tax credit?
Thanks to the Inflation Reduction Act, homeowners have been able to claim a 30% solar tax credit when they purchase and install home solar panels. EnergySage puts that number in context by breaking down just how much that tax credit can save homeowners.
"The average solar panel system costs around $28,000, or about $2.50 per watt," EnergySage wrote of data from its latest Marketplace Report. "With the tax credit, that drops to approximately $19,400."
However, under President Donald Trump's "Big Beautiful Bill," the federal solar tax credit is ending January 1, 2026, effectively eliminating the 30% incentive for homeowners looking to switch to clean energy.
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"Homeowners who don't go solar this year could miss out on $9,000 in savings," according to EnergySage. "The clock is ticking on one of the biggest solar incentives in American history."
Going solar is one of the best ways to save money on your home energy bills while you reduce your household's environmental footprint. After installing solar panels, you can get your energy bills to at or near $0 per month. For homeowners looking to make the switch, EnergySage has free tools that allow homeowners to compare quotes from vetted solar installers.
Why is the federal solar tax credit important?
The solar tax credit provides a financial incentive for homeowners to transition to clean energy. As more homeowners across the country install solar panels, they're not just saving money on their energy bills. They're also helping to reduce the amount of harmful, planet-warming gases entering the environment.
The federal solar tax credit also makes installing solar panels more affordable and accessible for homeowners. As a result, it's especially important to take advantage of this credit sooner rather than later, as it's the difference between saving thousands of dollars down the line.
How EnergySage helps homeowners go solar
To claim the 30% tax credit, homeowners need to finish their solar installation before the end of the year. Thanks to EnergySage, that goal is a realistic project. By taking advantage of their free services, the average homeowner can get up to $10,000 in incentives for solar purchases and installations.
EnergySage's mapping tool also highlights state incentives and shows homeowners the average cost of a home solar system on a state-by-state basis. As a result, thanks to EnergySage, homeowners can learn about and take advantage of every available incentive offered in their area when they install their home solar system.
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