The Trump Administration’s recent passage of the HR-1 bill (the so-called “Big Beautiful Bill”) has made significant cuts to residential clean energy tax credits. The 30% tax credit for residential solar projects will expire December 31, 2025. If you have been considering installing solar on your home, now is the time! While solar will always help reduce electricity costs, the payback period will be shorter if you can knock off 30% of the cost.
In fact, the Bill has also eliminated the:
- The $7,500 tax credit for new EVs, and $4,500 tax credit for used EVs will expire on September 30, 2025
- The $2,000 tax credit for heat pumps and heat pump water heaters will expire December 31, 2025
- The $1,200 tax credit for efficiency upgrades will expire December 31, 2025
To qualify for any of these credits, the project must be placed in service before the expiration date.
For Solar Projects: In order for solar projects to qualify for the 30% credit, the system must be paid for and installed ( but not necessarily interconnected) by the end of the year. Based on conversations with a sampling of solar installers, it is still possible to complete a residential solar installation by the end of the year if you get started in the next few weeks.
Getting started
There are many resources that can help you get started, and local experts to help you along the way.
- Project Sunroof. Plug your address into Google’s Project Sunroof to learn how much sun your roof gets. This tool is helpful as a first step, but shouldn’t replace talking to an expert about your solar potential.
- Lexington Solar Advisor. Connect with a trained solar advisor through the Lexington HeatSmart program. The advisor can answer your questions about the technology, help you navigate the changing incentives, and suggest some companies to reach out to. This is a free offering for all Lexington residents.
- Find Installers. Visit the Lexington’s Go Solar page to access the list of solar companies that have done the most installations in Lexington. This list does not serve as an endorsement of any of these companies. You can also explore EnergySage, an online solar marketplace, to connect with companies and get quotes.
- Installers we have contacted. We have made phone calls to a handful of installers and while we are not endorsing these installers, we did ask if they could finish a project before the end of the year, We also asked whether they have in-house installers as we understand that the a company is more apt to ride out any wave of disruption in the solar industry. We have created a table of this information. As we get more information, we will be adding to it to help you get started.
Join your 1,000+ neighbors in Lexington who have already gone solar, and are saving on their electricity bills!
Let us know if you are going solar and/or join the Lexington solar google group by sending an email to Marcia Gens ([email protected]) or Tom Shiple ([email protected]).
Questions? Reach out to the Town’s Sustainability & Resilience Officer, Maggie Peard at [email protected].
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