Homeowners Could Lose the Full Solar Tax Credit in Just 6 Months

June 22, 2025

New developments in Congress could fast-track the end of the federal solar Investment Tax Credit (ITC) for homeowners. A proposed change from the Senate would eliminate the credit just 180 days after the bill is signed, cutting it short before the expected end-of-2025 expiration.

This proposed change affects Section 25D (the federal solar tax credit for homeowner-installed systems). If passed, it would leave families with very little time to act and would undercut the long-standing support that has helped grow solar access and clean energy jobs across the country.

The Bill Hasn’t Passed Yet, But the Threat Is Real

The bill is still making its way through Congress. A vote in the Senate has not yet occurred. But if this version of the bill is approved and reconciled with the House version, it could move quickly to the President’s desk. Once signed, the 180-day countdown would begin.

If that happens, the ITC would not only end early, but would also begin a sharp phase-down for new systems:

  • 60% of the current credit in 2026
  • 20% in 2027
  • Eliminated in 2028 for many homeowners

The proposal represents a significant shift that could impact affordability, job growth, and access to clean energy, particularly in Washington, where incentives have helped fuel strong momentum in recent years.

What’s at Stake

This bill would eliminate one of the most crucial financial tools for making solar energy accessible to homeowners. It would also disrupt ongoing efforts to expand U.S.-based solar manufacturing, reduce reliance on foreign supply chains, and support the clean energy workforce.

These proposed cuts are already impacting the solar industry:

  • Stocks for U.S.-based solar companies fell sharply after the proposal was introduced.
  • Manufacturers, installers, and policy advocates are ramping up lobbying efforts.
  • Industry groups are urging Congress to slow down the phase-out and protect residential access to clean energy.

What You Can Do to Help

There is still time to influence this bill before it becomes law. If you support solar energy, clean jobs, and domestic manufacturing, this is the time to make your voice heard.

1. Share the campaign to raise awareness.

Help others understand what’s at risk.

SEIA campaign link

2. Contact your representatives

Use this fillable letter template to share your support for preserving the full credit.

Senator letter template 

3. Follow and support national advocacy groups

SEIA

SEMA 

Speak Up Before It’s Signed Into Law

This bill is not final. The Senate has not yet voted, and there is still a chance to slow it down, modify the terms, or advocate for a more reasonable timeline. But that window is closing.

Let’s stand together in support of solar access for homeowners across Washington and beyond. 

This is the time to speak up, not after the countdown has started.