Important Update: Early Termination of the 30% Federal Solar Tax Credit
The 30% Federal Solar Tax Credit Is Still Available — But Not For Long
In July 2025, Congress passed a revised federal energy bill that accelerates the phaseout of the Residential Clean Energy Credit. As a result, the 30% solar tax credit originally scheduled to remain through 2032 will now end on December 31, 2025.
This change impacts all homeowners considering solar installation in the next 12–18 months. If your system isn’t fully installed and operational before the deadline, you may lose access to one of the most valuable solar incentives in U.S. history.
What This Means for You
Eligibility Deadline: To qualify for the full 30% tax credit, your solar system must be installed, inspected, and turned on before December 31, 2025.
Project Timing: Residential solar installations typically require 8 to 12 weeks from initial consultation to final utility approval. Delays in permitting, inspections, or utility interconnection could put your eligibility at risk.
Financial Impact: For a typical system valued at $25,000, the 30% credit equates to a $7,500 reduction in your federal tax liability. That benefit is gone if you miss the cutoff.
Next Steps
Given the new expiration timeline, we strongly recommend starting your solar project as early as possible. At MD Green Energy, our team will guide you through every step from system design to installation to help ensure you’re eligible for the full federal and state-level benefits.
There’s no cost or obligation and it could help you save thousands before year-end.
Solar Incentives
Solar incentives are offered at both the federal and state levels to make clean energy more affordable for homeowners. These incentives are designed to reduce installation costs and improve long-term return on investment.
The most common incentives include:
- Federal Solar Tax Credit (ITC)
- State-level rebates and grant programs
- SRECs (Solar Renewable Energy Credits)
- Net metering credits for energy sent back to the grid
- Property tax exemptions in many states
Our experts monitor policy changes across Maryland, Virginia, Pennsylvania, Delaware, and Florida, so you don’t have to. We apply for eligible programs on your behalf and ensure nothing gets missed.
Benefits to Ownership
When you own your solar system, the savings go directly to you not a leasing company. That means:
- You qualify for all tax credits and rebates
- You can earn passive income through SREC programs (where available)
- Your home’s resale value increases with owned solar
- You eliminate utility bills and protect against rising rates
Ownership gives you long-term control and maximum financial benefit. And with financing options available, it’s more accessible than ever.
SRECs
If you’re in a state that supports Solar Renewable Energy Credits, like Maryland or Pennsylvania, you can earn money for every 1,000 kWh your system generates.
Here’s how it works:
- After installation, your system is certified and tracked.
- For every megawatt-hour (1,000 kWh), you earn 1 SREC.
- Utilities purchase these credits to meet clean energy standards.
- MD Green Energy manages the entire process so you get the income with zero complexity.
These credits can add hundreds (or even thousands) of dollars to your savings over time.
Net Metering
Net metering ensures you’re credited for the excess electricity your solar system sends back to the grid. When your panels produce more power than you use, that energy earns you credits which reduce your future utility bills.
In most states we serve, net metering is available at full retail value, meaning every kilowatt-hour you export is worth the same as what you consume. This significantly increases the value of your solar investment.