Thinking About Going Solar? You Might Want to Hurry.

If you’ve been considering solar panels—or other renewable energy upgrades for your home—now is your last chance to take full advantage of the 30% Residential Clean Energy Credit (RCEC).

Let’s break it down:

What Is the RCEC?

The RCEC is a federal tax credit that covers 30% of the cost of installing qualified clean energy systems, such as:

• Solar electric panels

• Solar water heaters

• Geothermal heat pumps

• Small wind turbines

  
  

You can claim it for your primary home, vacation property, or even rental units you live in. (If you’re a landlord who doesn’t live on-site, you’re out of luck.)

What’s Changing?

Originally, the RCEC is set to stay at 30% through 2032, gradually reducing in 2033 and 2034 before disappearing entirely. But that timeline will be cut short.

Due to the passage of the "One Big Beautiful Bill", 2025 will be your final chance to lock in the full 30% credit—years earlier than expected.

Why You Shouldn’t Wait

Installing solar (or any clean energy system) isn’t an overnight job. From picking the right setup to permitting, inspection, and final installation, the process can take months.

To qualify, your system needs to be fully installed and operational by December 31, 2025—not just on order.

And here’s a bonus: while the RCEC is non-refundable, you can carry forward any unused portion of the credit to future tax years.

Bottom Line

If clean energy is on your radar, 2025 is your last chance to claim the full 30% tax credit. Now’s the time to start planning.

Your next step? Check out our Proactive Tax Strategy & Planning for Business Owners. While you're there, take the 2-minute Tax Strategy Assessment and get some free tax strategy ideas.

We provide these articles as general information and not individualized tax advice.  They do not constitute a client relationship with you, and any information provided here should be applied at your own risk.