Consumer Reports explains what to know about solar tax credit ahead of the Dec. 31 deadline
Many Consumer Reports members say going solar has helped them lower their electric bills, in some cases eliminating them.The investment can be expensive, with a typical system running about $30,000, but a federal tax credit can reduce that to about $20,000. “You can save thousands of dollars with the solar tax credit, which applies to things like solar panels for producing electricity or solar heating. The trick is you must buy and install the system before the end of the year. And you can’t lease any of the components,” said Paul Hope of Consumer Reports. Those considering solar should act quickly, as changes in the law leave only a few months to take advantage of the credit. “There’s no denying that solar is a major investment, and the process for going solar can be pretty involved. That’s why it makes sense to do your research upfront,” Hope said. “Check with your city and/or state to see if they have any specific requirements.”Consumer Reports advises getting at least three bids, starting with companies recommended by neighbors and supported by strong online reviews. Established local companies often have more expertise with the permitting process.>> Download the free WMUR app to get updates on the go: Apple | Google Play << Door-to-door sales should be avoided, as those are often out-of-town companies without a brick-and-mortar location. If approached, ask plenty of questions to verify the company is reputable.”Once you find an installer you want to work with, ask them if they can have your system installed and up and running by the end of 2025 in order for you to get the credit,” Hope said.After signing a contract, installers generally secure permits, get utility approval, install the panels, schedule inspections, and connect the system to the grid, all of which must be completed by Dec. 31 for the credit to apply.Like the residential solar tax credit, the energy-efficient home improvement credit also expires at the end of the year.If you’re planning to install Energy Star-certified exterior windows and doors or upgrade circuit panels and heat pumps, now is the time to act.>> Subscribe to WMUR’s YouTube channel <<
Many Consumer Reports members say going solar has helped them lower their electric bills, in some cases eliminating them.
The investment can be expensive, with a typical system running about $30,000, but a federal tax credit can reduce that to about $20,000.
“You can save thousands of dollars with the solar tax credit, which applies to things like solar panels for producing electricity or solar heating. The trick is you must buy and install the system before the end of the year. And you can’t lease any of the components,” said Paul Hope of Consumer Reports.
Those considering solar should act quickly, as changes in the law leave only a few months to take advantage of the credit.
“There’s no denying that solar is a major investment, and the process for going solar can be pretty involved. That’s why it makes sense to do your research upfront,” Hope said. “Check with your city and/or state to see if they have any specific requirements.”
Consumer Reports advises getting at least three bids, starting with companies recommended by neighbors and supported by strong online reviews. Established local companies often have more expertise with the permitting process.
>> Download the free WMUR app to get updates on the go: Apple | Google Play <<
Door-to-door sales should be avoided, as those are often out-of-town companies without a brick-and-mortar location. If approached, ask plenty of questions to verify the company is reputable.
“Once you find an installer you want to work with, ask them if they can have your system installed and up and running by the end of 2025 in order for you to get the credit,” Hope said.
After signing a contract, installers generally secure permits, get utility approval, install the panels, schedule inspections, and connect the system to the grid, all of which must be completed by Dec. 31 for the credit to apply.
Like the residential solar tax credit, the energy-efficient home improvement credit also expires at the end of the year.
If you’re planning to install Energy Star-certified exterior windows and doors or upgrade circuit panels and heat pumps, now is the time to act.