The 30% Residential Solar Tax Credit Could End Soon — What Wisconsin Homeowners Need to Know
May 28, 2025
The Future of the 30% Solar Tax Credit is Uncertain — Here’s Why It Matters for Wisconsin Homeowners
As Congress debates the next federal budget, one of the most important clean energy incentives in the country—the 30% Residential Solar Tax Credit—may be eliminated as early as January 1, 2026.
For homeowners in Central Wisconsin considering solar, this is a critical time to pay attention—and take action. Fill out our free estimate form
today to ensure your project receives the incentive while it lasts.
What is the Residential Solar Tax Credit?
This tax credit allows homeowners to deduct 30% of the total cost of a solar energy system (including battery storage) from their federal income tax liability. It:
- Covers residential solar installations and home energy storage
- Saves thousands of dollars upfront
- Makes solar more affordable and accessible across income levels
- Can be rolled over to future years if you don’t have enough income tax liability in the first year
Since its creation, the Residential Solar Tax Credit has driven massive growth in U.S. clean energy—helping families lower energy bills, reduce emissions, and increase home value.
What’s Happening Now?
As of May 2025, Congress is reviewing budget proposals that include cuts to clean energy tax credits. If these cuts go through, the 30% Residential Solar Tax Credit could expire after December 31, 2025—years ahead of schedule.
This change could also impact other incentives, including:
- Energy-efficient home upgrades
- Electric vehicle tax credits
- Heat pump installations
Who Will This Impact?
If you're thinking about going solar, this proposed rollback would directly affect you.
And for homeowners in Portage, Marathon, Waushara, Waupaca, Wood, and Lincoln Counties, 2025 could be your last chance to stack additional savings. Through the Grow Solar Central Wisconsin Group Buy program—where Northwind Solar is the selected installer—you may qualify for exclusive, limited-time discounts in addition to the federal tax credit.
Without the 30% Residential Tax Credit:
- Your upfront cost would increase by thousands
- Your solar payback period would be longer
- Your long-term savings would shrink
For many households, this could mean solar is no longer financially feasible. It would also slow Wisconsin’s progress toward energy independence and resilience.
We’re already seeing a surge in solar interest as people try to lock in their credit. If you want to be sure your project qualifies, now is the time to act.
Why This Isn’t Just About Solar — It’s About Our Energy Future
As Northwind Solar founder Josh Stolzenburg puts it, “The proposed cuts to clean energy tax credits are shortsighted and dangerous—not just for the climate, but for our country’s energy security and economic resilience.”
With electricity demand soaring due to EVs, electrification, and digital infrastructure, the U.S. needs more power—fast. Clean energy tax credits support solar, wind, and battery projects that are fast to build, cost-effective, and grid-friendly.
“Cutting these credits now undermines the very infrastructure we need to power our digital and electric future. It’s not just bad climate policy—it’s bad energy policy.” — Josh Stolzenburg
Take Action: Get in the Solar Queue Now
If you want to lock in the 30% solar tax credit, your system needs to be installed and operational by the end of 2025.
That means starting your project this summer.
Fill out our free estimate form today
— it only takes a minute, and we’ll provide a personalized quote based on your home and energy goals.
Our team will design a custom solar system based on your actual usage and help you navigate all available incentives.
Let your friends, family, and neighbors know what’s at stake. The more informed we are, the stronger we’ll be in building a resilient, affordable, and clean energy future.
Together, we’re powering forward.
Northwind Solar
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UPDATE (June 17, 2025): Tax Credit Elimination Bill Advances
In May 2025, the U.S. House of Representatives passed the "One Big Beautiful Bill Act," which includes a provision to eliminate the 30% Residential Clean Energy Tax Credit after December 31, 2025—seven years earlier than planned.
The Senate is now reviewing the bill, and a final vote is expected before the July 4th recess. If passed, the federal solar tax credit will end on January 1, 2026, making 2025 the last year homeowners can take advantage of this powerful incentive.
What This Means for You:
- To lock in the 30% credit, your solar system must be fully installed and operational by December 31, 2025
- Project demand is surging—installers are already booking out into fall
- Act now to get on the schedule before capacity fills up
We’re keeping a close eye on Senate developments and will continue to provide updates. In the meantime, we encourage all interested homeowners to request an estimate and reserve your place in the solar queue.
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WPR (June 20, 2025): Time is running out for Wisconsin homeowners to make use of home energy tax credits
Across the United States, more schools than ever are turning to solar energy—and it’s easy to see why. According to Generation180’s Brighter Future 2024 report , the amount of solar installed on K-12 schools has tripled since 2015. Today, more than 6 million students attend a solar-powered school, experiencing firsthand how clean energy can power classrooms and communities.
Maintaining solar power systems boosts efficiency, longevity, and reliability. Regular upkeep ensures cost savings and sustainable energy for years.
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I went solar with Northwind, and it was a great experience! Since friends don’t let friends miss out on solar, I wanted to refer you to Northwind so you can see if it might be a good fit for you too, especially with this being the final year to claim the 30% residential solar tax credit . Just fill out the form below, and Northwind will be in touch to explore your options and provide a free, no-obligation solar estimate. Be sure to include my name so they know I sent you!
A major shift in U.S. energy policy is here.
Right now, the federal Investment Tax Credit (ITC) offers a 30% tax credit to businesses that install solar energy systems. Originally scheduled to continue through 2033, the current Senate version of the bill maintains this 30% rate only through the end of 2025. After that, the credit is set to step down sharply: 18% in 2026, 6% in 2027, and 0% in 2028 and beyond. Don’t Miss the Safe Harbor Window Fortunately, there’s a way to lock in the full 30% credit before it’s reduced. Under the IRS’s "safe harbor" provision, you can preserve the full ITC by beginning physical work on your project or making a minimum 5% down payment by the end of 2025 — even if your system is completed in 2026. This is a powerful opportunity to secure long-term financial benefits while the full federal incentive is still available. Stackable Incentives Make the Financials Even Better Beyond the ITC, there are several additional programs that can dramatically reduce your project’s net cost: 10% Domestic Content Bonus: Earn an extra 10% tax credit for using U.S.-made solar components. Focus on Energy Rebates: A Wisconsin-based program offering upfront cash rebates for solar projects. MACRS Accelerated Depreciation: A federal tax benefit that allows you to recover the cost of your solar system more quickly through tax deductions. Solar Central Wisconsin Grow Solar Group Buy: Group pricing and additional resources that make going solar more affordable for local businesses. When stacked together, these incentives can cover a significant portion of your total investment, all while reducing your energy bills for decades to come. Why Act Now Solar has always been a smart investment, but today’s environment is uniquely favorable. With utility energy costs rising and key federal credits sunsetting, 2025 is the year to take action. Whether you’ve previously explored solar or are just getting started, revisiting your project now could mean locking in tens of thousands of dollars in savings. Northwind Solar can help you navigate every step, from incentive qualification to project design and installation. Improve your profitability by making a high-performing energy investment in your business. Achieve energy independence, support local businesses, and contact Northwind Solar today! REQUEST A FREE ESTIMATE Reach out anytime at: 715‑630‑6451 ___________________ Additional Resources: Update on Residential Solar Incentive Changes Solar Incentives Overview Grow Solar Central Wisconsin Group Buy Program
Do you have questions about solar system benefits? Read this blog to learn more about breaking down the myths and real benefits of solar power.
PROGRAM UPDATE: Only 6 kW to go before we hit the 250 kW milestone and unlock the max Group Buy Discount for all participants—$0.15 per watt (up from $0.10/W today). For a typical 8 kW home system, that’s about an additional $1,200 in savings. Sign by Sept. 30 to lock this in.
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