There are several aspects related to solar incentives that homeowners should be aware of in 2025:
Current Incentives
- Federal Solar Tax Credit: As of now, homeowners can claim a 30% federal solar tax credit for solar system installations through 2032. This includes 2025, and it is highly likely that the 30% credit will remain in effect for this year.
- State and Local Incentives: These can vary significantly by location. For instance, the State of Michigan offers programs like the Home Electrification and Appliance Rebates to reduce costs associated with efficient electric technologies.
Potential Changes
- Legislative Discussions: The U.S. Congress is expected to deliberate on changes to the solar tax credits as part of the federal budget bill. While there is a possibility of changes or even an early phase-out of the tax credits, it is unlikely to affect the 2025 tax season significantly.
- REAP Grant Funding: Annual funding for the Rural Energy for America Program (REAP) might be reduced, making grant applications more competitive. If you are a farmer considering solar, 2025 might be the last year to receive substantial REAP grant assistance.
Recommendations for Homeowners
- Act Promptly: Signing a contract for a solar installation in 2025 is advisable to secure the 30% federal solar tax credit.
- Monitor Local Incentives: Keep informed about any changes in state and local incentives, which can provide additional savings.
Overall, while there are discussions about potential changes, the federal solar tax credit is expected to remain a valuable incentive for homeowners in 2025.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-any-upcoming-changes-to-solar-incentives-that-homeowners-should-be-aware-of/
