The Solar Tax Credit Is at Risk: What Virginians Need to Know

2026 Update: The “One Big Beautiful Bill” was signed into law on July 4, 2025. The 30% residential solar tax credit (Section 25D) has been eliminated for systems purchased after December 31, 2025. The commercial tax credit remains available through at least 2027, which means solar leases and PPAs are still a strong path forward for Virginia homeowners. Read our full breakdown here.

If you’re thinking about going solar, now is probably the time. Congress is pushing through legislation that would dramatically cut the federal solar tax credit for homeowners—much sooner than expected.

What’s Happening?

Congress’ “Big Beautiful Bill” would gut parts of the Inflation Reduction Act, including the 30% solar tax credit (also known as the Investment Tax Credit or ITC). Here’s what the bill could do:

• End the solar tax credit for homeowners just 180 days after the bill is signed into law.

• Eliminate solar leasing and power purchase agreements (PPAs) from eligibility—cutting off affordable solar options for many households.

• Shorten the timeline for grid-tied and commercial solar projects to qualify for full tax credits, especially for systems starting after 2025.

The House has already passed their version. The Senate just released theirs—it’s slightly different, but still deeply harmful to residential solar access, although slightly less for commercial solar. They’re trying to move quickly, with a possible vote by July 4th. We’re still optimistic, but want everyone to understand the lay of the land.

What This Means for You

If the senate bill passes, homeowners may only have about 6 months to go solar contract and lock in the full 30% tax credit.

That’s a huge shift. Under current law, the credit is supposed to last through 2032. This bill would cut that short by six years or more.

In practical terms:

• If you wait too long, you could lose thousands of dollars in savings.

• Projects tied to new home construction—or installs delayed by supply chains—might miss the cutoff.

• Virginia’s growing market for grid-tied solar systems and commercial solar could face major setbacks.

• We don’t like hard-selling— But if you’re considering solar, it’s definitely “go-time”.

What You Can Still Do

✅ You can still get the 30% tax credit by installing solar now.

✅ You can make your voice heard.

This bill hasn’t passed the Senate yet—and some Senators are pushing back. If you believe Virginians should keep access to affordable clean energy, speak up. 📞 Use this simple tool to contact your senators

Why It Matters

The solar tax credit has helped thousands of Virginia families go solar—cutting their bills, increasing home value, and contributing to a cleaner future.

It’s been key to making residential and commercial solar more accessible across our region. With enough public support, the Senate could revise this bill before it becomes law.

But if you’re on the fence about solar, this is your heads-up: 2025 may be the best—and possibly last—chance to get the full benefit from the 30% tax credit.