Now is the best time for Louisvillians to invest in solar energy. Here’s why and how

• Trump’s One Big Beautiful Bill Act is phasing out tax credits that can help residents save thousands of dollars on solar energy systems.
• Solarize Louisville is a city program that connects Louisvillians with vetted installers to ensure a smooth process at a discounted price.
• Louisville residents who would like to take advantage of low solar costs should begin the process at the start of September.

If you’re considering installing solar energy for your home or small business, now is the time to act before a federal tax incentive where homeowners could earn up to a 30% tax credit is phased out as a result of the One Big Beautiful Bill Act.

Homeowners must have their solar systems fully installed before the Dec. 31, 2025 deadline to be eligible for the credit, which cut thousands of dollars from the net cost of solar installation, depending on their income.

“If you’re considering going solar at your home, you must act before the end of this year,” Louisville Mayor Craig Greenberg said at a press conference on Aug. 19.

Homeowners who would like to use Louisville’s personalized, vetted solar installation services through Solarize Louisville must sign up to express interest by Sept. 15, Greenberg said. This will ensure installation is complete before the federal deadline.

Here is what to know about Solarize Louisville and making the most of the solar tax credit before it is phased out:

What is Solarize Louisville?

Solarize Louisville is an initiative created through a partnership between Louisville Metro Government and the Kentucky Solar Energy Society to help residents support the city’s 100% clean energy goals, according to its website. The project allows households to obtain solar installations from vetted installers at discounted wholesale rates.

Sumedha Rao, executive director at Louisville’s Office of Sustainability, said Solarize Louisville provides an additional 15-18% discount, allowing residents to cut the cost of solar almost in half when the discount is combined with the 30% federal tax credit.

“Through the solar grant program, Solarize Louisville addresses systemic barriers and expands the opportunity to benefit from cleaner and more affordable energy to low- to moderate-income residents,” Solarize Louisville’s website says.

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Nick Hartnett, owner of Pure Power Solar, which partners with Solarize Louisville, said the program also eliminates the risk of getting scammed by less reliable solar companies by ensuring high quality installation at a reasonable price.

All homeowners in Jefferson, Oldham, Spencer, Shelby and Bullitt counties in Kentucky, as well as Harrison, Floyd and Clark counties in Indiana are eligible for Solarize Louisville’s services. The program accepts applications from both residential and small non-residential property owners, so long as the project is feasible.

Since Solarize Louisville’s launch in 2022, more than 250 participants have signed up to go solar through the program, Greenberg said.

Who will be impacted when the tax credit ends?

The discontinued 30% federal tax credit will only impact the residential side of the solar business, Hartnett said.

The federal Direct Pay Program, which is still running, provides government funding to municipal buildings, cities, nonprofits and others to invest in clean energy on a larger scale. There are other Louisville programs in place to support clean energy, such as the Cool Roof Incentive Program, but none other than Solarize Louisville are designed to aid residents who are looking to take advantage of the hefty federal tax credit.

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Are solar panels worth it?

While the lofty upfront cost can be a barrier for some, Elisa Owen, senior organizer of the Sierra Club’s Beyond Coal Campaign in Kentucky, said investing in solar energy can be beneficial because the systems do not have marginal costs. Unlike gas users, instead of incuring changing costs based on use over time, solar energy users only pay the fixed purchasing price on the front end.

Utilizing the federal tax credit will ensure a reduced fixed cost upon purchase.

“If somebody spends, say, $20,000 on a solar system, they’re going to get about a $6,000 tax credit back, which would make their net investment only $14,000,” Hartnett said.

About half of the people who go solar with Solarize Louisville program also obtained batteries, too, which can power a home if there is an outage.

“Just the fact that you can really prepay for power and lock in what you’re spending on power over the next 25 or 30 years is a big benefit,” Hartnett said.

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Solarize Louisville also said on its website investing in solar can support local jobs and potentially increase a property’s overall value.

Brenden Frazier, director of product and technology at SOLX, a solar panel manufacturer in Puerto Rico, and the owner of Intuitive Energy, an energy efficiency consulting business in Louisville, said he has seen an increase in requests for home energy audits as the tax credit deadline closes from people who know the cost will increase.

How does solar energy help offset the impacts of climate change?

Solar energy is associated with a variety of environmental benefits, like reduced greenhouse gas emissions, improved air quality and water conservation. Solar power takes a renewable resource — sunlight — and transforms it into energy, rather than traditional methods that involve burning fuel, expending natural resources and polluting the air.

To further Louisville’s 100% clean energy goals, the city aims to phase out fossil fuels by prioritize clean energy, like solar and electric vehicles, in the coming years. Part of this project involves the private sector investing in clean energy options with the help of government programs and incentives, such as Solarize Louisville.

Yet, Hartnett still says going all-in on solar energy should be an enthusiastic choice.

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“In order for a lot of people to do it, it has to make sense to them, personally — not just something for the greater good — and the tax credit has been a really big part of that, as well,” Hartnett said.

How do I go about getting solar energy for my home or business?

The first step for Louisvillians who are considering solar energy systems for their homes is to sign up for Solarize Louisville, or contact another trusted solar energy provider, before the Sept. 15 deadline.

Residents can fill out the form through the link on Solarize Louisville’s website and get connected with an installer, who will give them personalized information about cost and logistics. These conversations are “low-pressure,” Rao said.

“We want to inform people and educate them about what the options might be, and help them make their own decision,” she said.

Pure Power Solar’s “Dos and Don’ts” page advises residents to to get multiple quotes, compare them and make the choice that is right for them. It also recommends that potential buyers hire specialized, local installers for the best quality.

Residents who would like to take advantage of the federal tax incentive should plan to have their solar systems fully installed and functional by the end of 2025.