2025 V3 Article - Solar Tax Credit

If you’ve been thinking about installing solar panels on your home, now may be the time to act. The federal Residential Clean Energy Credit, also known as the solar tax credit, is currently offering homeowners a 30% tax credit on the cost of installing a solar energy system. But that benefit is coming to an end.

As it stands now, the solar tax credit is scheduled to be fully eliminated after December 31, 2025. This means homeowners who wait too long to start their solar project could miss out on thousands of dollars in federal tax savings.

What Does the Tax Credit Cover?

The 30% credit applies to the total cost of your home solar installation, including solar panels, inverters, wiring, and installation labor. For a $25,000 system, that’s a potential $7,500 in federal tax savings, a powerful incentive for making a long-term investment in clean, renewable energy for your home.But because solar projects take time—choosing an installer, securing financing, permitting, and completing installation—waiting until late 2025 may cause you to miss out on qualifying for the tax credit.  

How We Can Help

At UMassFive, we’re committed to supporting our members in making energy-smart, financially sound decisions, including going solar. We offer affordable solar loan financing with flexible terms (now offering a 20-year term to be even more affordable), competitive rates, and a local and experienced team that understands the ins and outs of renewable energy projects. Whether you’re just beginning your solar research or already working with a local installer, our team is here to help you explore flexible loan options that fit your budget. We’ve helped thousands of members throughout the region take advantage of solar, and we’re proud to be a trusted partner in that process. We also work closely with many of the area’s top solar installers, which helps make financing your project hassle-free from start to finish.

Now Is the Time to Act

Choosing solar helps reduce your energy bills, shrink your carbon footprint, and add value to your home. But with the federal tax credit ending after 2025, the financial benefits of going solar will be shrinking in the near future. Let’s make sure you that don’t miss out on this opportunity to power your home with sunshine & financial confidence. 

Here are the recommended next steps to take if you're considering going solar with your home:

• Get a quote from a trusted local installer
• Start your project timeline early to lock in savings
• Talk to UMassFive about financing options

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