Suncovia Warns: Residential Solar Tax Credit Ends December 31, 2025

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Homeowners Urged to Act Now to Complete Their Solar Installation by the Deadline

BANGOR, ME, UNITED STATES, August 3, 2025 /EINPresswire.com/ -- Suncovia, a leading advocate for equitable clean energy solutions, has expressed deep concern over the signing of the One Big Beautiful Bill Act on July 4, 2025. With its passing, the federal 30% Residential Clean Energy Credit (Section 25D) is officially ending on December 31, 2025. The legislation abruptly stops the long-standing tax credit without a phase-out period — creating a narrow and urgent window for homeowners to take advantage of this historic incentive.

Suncovia, a leading force in solar project development and clean energy financing, is calling on homeowners, contractors, and developers to move quickly. This tax credit sunset is one of the most consequential energy policy shifts in over a decade.

“This change dramatically shortens the planning horizon for families considering solar,” said Craig Mattson, CEO of Suncovia. “If you're thinking about going solar, the time to act is now — not next year.”

WHAT HOMEOWNERS NEED TO KNOW:
DECEMBER 31, 2025 IS A HARD DEADLINE
To qualify for the 30% Residential Clean Energy Credit, solar systems must be fully installed and operational by the end of 2025 — no extensions, no carryovers.

THERE IS NO PHASE-DOWN — NO GRACE PERIOD
Contrary to the Inflation Reduction Act’s original plan for a gradual wind-down through 2034, this legislation cuts the credit off entirely after 2025.

COMMERCIAL SOLAR CREDIT REMAINS, BUT WITH NEW DATES
The 30% Investment Tax Credit (ITC) for commercial and utility-scale projects still stands but now includes new rules: projects must start by July 4, 2026, and be operational by December 31, 2027, to remain eligible.

IMPACTS FOR HOMEOWNERS AND THE INDUSTRY:
The end of the federal residential solar tax credit could significantly impact both consumers and the broader solar market. For homeowners, the loss of the 30% credit may result in noticeably higher upfront costs for solar installations. Without the federal incentive, many may experience longer return-on-investment timelines beginning in 2026, which could dampen enthusiasm and delay decision-making.

Additionally, the compressed deadline is expected to create logistical challenges. As the end-of-year deadline approaches, installers may become overbooked, and material availability could tighten. These bottlenecks could prevent some homeowners from completing their installations in time to qualify for the credit.

From an industry perspective, the sudden removal of the residential incentive is likely to cause market disruption. The reduced demand could lead to job losses, particularly among smaller solar contractors and residential-focused providers. This shift may also slow the overall pace of solar adoption, just as the U.S. seeks to solidify its leadership in the global clean energy transition.

Suncovia remains committed to making clean energy accessible. In response to these changes, the company is expanding its support for residential installations through Q4 2025. The company is also closely monitoring legislative activity and working with industry partners and the Solar Energy Industries Association (SEIA) to advocate for long-term policies that support clean energy adoption and economic resilience.

Suncovia strongly encourages homeowners to act now, before it’s too late. Homeowners should schedule their solar evaluations, secure permits, and finalize installations well before year-end to ensure eligibility for the 30% tax credit.

“This is the last full year for homeowners to take advantage of the most generous solar incentive in U.S. history,” added Craig Mattson. “We don’t want anyone to miss out due to delays or misinformation.”

ABOUT SUNCOVIA
With over 20 years of industry experience, Suncovia is committed to making solar energy accessible for all, delivering affordable solar solutions that serve households throughout Maine, New Hampshire, and Massachusetts—with no credit checks required. As the region’s leading full-service solar provider, Suncovia empowers homeowners to embrace solar energy and mitigate the financial impact of rising utility costs. Each project, from initial sale to installation, is managed by in-house experts, ensuring a high-quality and streamlined experience without outsourcing.

Suncovia installs premium solar panels, inverters, and battery storage solutions, and offers roofing repairs, re-roofing, tree trimming, removal, and maintenance services to keep each system functioning at its best.

andrea brancati
Suncovia
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