Trump Ends Solar Tax Credit Early: What Homeowners Should Do

President Trump’s signature on the “Big Beautiful Bill” changed the solar equation for millions of American homeowners, according to EnergySage.

The 30% federal tax credit that’s made rooftop solar installations affordable? It’s gone after December 31, 2025. That’s nearly a decade earlier than planned.

Here’s what you need to know if you’re considering solar or already have panels on your roof.

If you’ve been on the fence about solar, the math just became urgent. According to EnergySage, homeowners who install before year’s end can still claim an average of $9,000 in federal tax savings. Wait until 2026, and that money vanishes.

The timing couldn’t be worse. Electricity demand is surging, driven largely by AI data centers that could increase consumption by 130% by 2030, per EnergySage’s analysis.

Without more distributed solar generation to help balance the grid, expect higher utility bills as power companies build new infrastructure to meet this growth.

For context, the average 11-kilowatt system costs about $28,160 before incentives, according to EnergySage. With the tax credit, that drops to around $20,000. Without it? You’re paying full price.

If you’ve already installed solar panels, breathe easy. Your existing tax benefits remain intact, and you’ll likely see your investment pay off even faster as electricity rates climb.

The real winners here might be homeowners who locked in solar installations over the past few years when both equipment prices and interest rates were lower.

As solar becomes less accessible to new buyers, having panels in place could offer an edge, both in savings and home appeal. Think of it like owning a rent-controlled apartment in a hot market. You’ve got something increasingly rare and valuable.

What you do next depends on your situation:

• If you’re considering solar: Get quotes now. Installation typically takes two to four months, and EnergySage predicts a surge in late 2025 as homeowners rush to meet the tax credit deadline. Waiting means longer delays and the potential to miss out entirely.

• If you already have solar: Consider adding battery storage while some state incentives remain available. As grid reliability becomes increasingly uncertain due to surging demand, backup power becomes more valuable.

• If solar doesn’t pencil out: Focus on other efficiency upgrades. Better insulation, smart thermostats, and efficient appliances can still cut your energy bills without the hefty upfront investment in solar.

Whether you’re racing to install panels or exploring alternatives, one thing is clear: achieving energy independence has become more expensive, making smart decisions about your home’s power needs more critical than ever.

Backing Battery Backup

Colorado continues to grow more and more each year, and while the construction of new homes and developments can support it, will our grid persevere?

The electric grid is experiencing an increase of pressure as the demand for electricity continues to rise. In Colorado, homeowners are experiencing more outages than in recent years. Outages are not only becoming more common, they are also getting longer, as data shows that outage minutes increased to just under 6 hours in 2024 for the average Xcel customer. This is quite a hike from the average 166 minutes of outage time seen in the prior decade, meaning that both outage occurrences and outage durations are increasing. Pair this issue with increasing customer service wait times with Xcel, and you’ve got an increasingly unstable grid.

What can one do to be prepared in the event of an outage? Xcel provides some tips and tricks for outage preparedness, but why not circumvent the outage altogether? The best way to do that is to provide your home with a solution that can withstand increasing grid uncertainty— battery backup systems!

Battery backup systems, or energy storage systems (ESS), provide the ability to power a home for an extended period of time without relying on the grid. In the event of an outage, the grid shuts down and the battery system spurs into action to supply your electrical panel with power. Modern energy storage systems work so quickly your lights won’t even flicker when the power goes out! Add a solar panel system and some conscientious energy usage into the mix, and you could power your home for days without the grid.

Whether you’re looking to add a battery to an existing system or scouting your home’s potential for a PV + ESS system, we can help!

The growing demand of ai? or the growing demand for ai?

Artificial Intelligence, AI, seems to be everywhere in the United States and continues to grow both publicly and privately. Statista, reports that AI is expected to have an annual growth rate of 26.95% and become the largest market size in the US. In fact, AI has grown so much that a survey from Elon (not Musk) University has found that over 52% of adults use a large language model such as ChatGPT, Gemini, Copilot, Claude, etc. in their daily lives.

The demand of AI by everyday Americans seems to be growing and will likely continue to increase throughout the decade. This is simply the reality of our nation and one that we must be prepared for. Yet, one must not forget to ask: What exactly is the growing demand for AI? Are we, as a country, prepared for that?

Projections, from the International Energy Agency (IEA), have shown that AI worldwide will have electricity demand due to data centers doubling to around 945 TWh by the end of the decade. From the US alone, we can see that AI is expected to have 88 TWh of electricity demand growth by 2030. 

As a good American, of course, we need to put this in terms we can understand. If we had all 30 NFL stadiums (even though there are 32 teams) powered on, for approximately 5 hours, and using their peak consumption of 10 MW we obtain 50 MWh per stadium. Or simply put, 1500 MWh from all 30 stadiums powered simultaneously for 5 hours. 

This equates to 58,667 games occurring at the same time to power the future AI data centers of the nation by 2030. Or taking the 272 games in a season, the electricity demand for the data centers by 2030 would result in ~215 seasons of NFL football, by powering every single game in each of those seasons. The Broncos, and maybe even the Cowboys, will have to have won a Superbowl by then, right?

Regardless of who the Superbowl champions will be for the next 215 seasons, there needs to be a solution that will cover the electricity demand of these data centers. As demand will continue to grow, surely the supply of electricity production must grow alongside it? Well cutting supplies, incentives, resources, and accessibility for energy production methods- like wind and solar energy production- certainly isn’t going to do it. 

America is facing and will be facing an energy crisis for much of the near future. Whether we admit it or not it is the responsibility of American citizens and an issue that we must hold our leaders accountable for. America needs to continue to produce energy, in both renewable and “traditional” methods, in order to meet the demand for AI. Action is needed and we must continue to fight for energy production methods. The United States of America needs to not take a step backwards, but instead be prepared to step forward into the future of AI in our contemporary world.

“Big, Beautiful Bill” just passed

KEY UPDATE: If you currently have solar, this new law will not impact you. If you or members of your community have not installed residential solar, it might be the time to consider investing in this technology. The “25D” tax credit, which has been the engine of consumer-owned home solar, will expire on December 31, 2025. If you want to realize this 30% tax credit, the time to act is now.

Senate passes budget bill without solar excise tax

On July 1, the U.S. Senate passed its version of the 2025 budget reconciliation bill, with Vice President JD Vance casting the tie-breaking vote. While the final legislation still poses challenges for the clean energy industry, several significant changes were made—some of which may help utility-scale and residential solar projects push forward in the short term.

What’s Changed in the Final Senate Bill?

The 50% Excise Tax on Chinese Solar Components—Removed

Originally proposed as a major blow to solar developers, the excise tax on solar projects tied to Chinese materials has been stripped from the final version. This is a huge relief to many in the industry, though foreign sourcing rules still remain on the horizon.

Residential Solar Tax Credit (25D) Still Set to Expire

The 30% residential solar tax credit (ITC) is still scheduled to expire at the end of 2025. Homeowners must install systems by December 31 to claim the full credit. (SEIA Overview Here)

Utility-Scale Projects Get a Temporary Lifeline

Projects that begin construction within 12 months of the bill’s enactment and are placed into service within four years can still qualify for the full ITC/PTC (48E/45Y). According to Roth Capital Partners, this could effectively extend the 100% tax credit to mid-2030 for projects that begin construction by mid-2026. Projects that miss that timeline must be placed into service by the end of 2027 or risk losing incentives.

What’s Still Intact (or Repaired)

• Residential leasing companies can now receive the 48E commercial ITC

• Storage tax credit (48E) remains untouched—still available through 2033

• Manufacturing tax credit (45X) is preserved and stackable, allowing wafer-cell-panel manufacturers to receive layered incentives if made at the same facility

What About Foreign Entity Restrictions?

Projects that start construction in 2025 are exempt from the Foreign Entity of Concern (FEOC) rules.

However, starting in 2026, developers can no longer receive “material assistance from a prohibited foreign entity”—a clause that will complicate sourcing and pricing for many U.S.-based solar companies.

Industry Leaders Respond

Abigail Ross Hopper, President and CEO of SEIA, issued a stark warning:

“If this bill becomes law, families will face higher electric bills, factories will shut down, Americans will lose their jobs, and our electric grid will grow weaker.”

“This would destabilize our energy future and strip millions of families of the energy savings, resilience, and independence that solar and storage provide.”

What Comes Next?

The bill now heads back to the House of Representatives, where lawmakers must approve the Senate’s revisions before it moves to the President’s desk.

In the meantime, homeowners and businesses still have a narrow window to take advantage of the current 30% solar tax credit—and that opportunity is closing fast.

Don't Wait Until the Window Closes

If you’re considering solar for your home or business, now is the time to act. The incentives are still available—but this bill makes it clear: they won’t be around for long.

👉 Schedule your solar consultation today and lock in your 2025 installation before it’s too late.

Senate version of Trump's "big, beautiful bill" would pummel renewable energy industry with new tax

The latest version of President Trump’s sweeping second-term legislative agenda poses a serious threat to the future of clean energy in the United States. The Senate version of the so-called “Big, Beautiful Bill” introduces a new excise tax on wind and solar projects, accelerates the end of renewable energy tax credits, and imposes strict foreign sourcing restrictions—changes that could increase energy prices, halt clean energy development, and eliminate millions of jobs.

What’s in the Bill That Impacts Solar and Renewables?

1. New Excise Tax on Clean Energy Projects

Buried on page 558 of the Senate bill is a proposed excise tax on all wind and solar projects that begin construction after June 16, 2025, or are placed into service after 2027.

• This tax is expected to cost clean energy developers $4–$7 billion by 2036, according to the American Clean Power Association.

• Consumers may see electricity prices increase by 8–10% as a result.

2. Foreign-Sourced Material Restrictions

Projects would be taxed if they source components from “prohibited foreign countries” like China. While the policy aims to promote U.S. manufacturing, clean energy experts warn that avoiding Chinese components is currently cost-prohibitive, particularly for solar developers.

This could drive energy-hungry companies like AI and data center operators to source power overseas, defeating the bill’s intended goals.

3. Accelerated Sunset of Renewable Tax Credits

The Senate bill would also eliminate or phase out tax credits for solar, wind, electric vehicles, and energy-efficient technologies sooner than previously planned:

• Inflation Reduction Act tax credits, originally slated to run through 2032, would now end in 2027 or 2028, depending on the version passed.

• The Senate version ends credits earlier than the House version—one more blow to long-term project viability.

A study from Rhodium Group estimates that this could result in a 72% drop in new solar and wind installations over the next decade.

Reactions Across the Spectrum

Elon Musk broke his silence, calling the Senate bill:

“Utterly insane and destructive... A massive strategic error... It will destroy millions of jobs and leave America extremely vulnerable.”

Even conservative energy analysts and pro-business groups were taken aback:

• Alex Epstein, a known critic of green subsidies, said: “I just learned about the excise tax and it’s definitely not something I would support.”

• The U.S. Chamber of Commerce called the tax “bad energy policy” and warned it would increase electricity prices during a time of rising demand.

And in a rare moment of unity:

• The North American Building Trades Union declared the bill could become “the biggest job-killing bill in the history of this country.”

• Their statement compares its impact to “1,000 canceled Keystone XL pipeline projects,” estimating 1.75 million jobs and $148 billion in annual wages and benefits lost.

What This Means for Solar Installers, Homeowners, and the Future of Clean Energy

If passed, this bill would mark a sharp reversal of the U.S.'s clean energy policy, with devastating consequences for:

• Homeowners seeking to install solar before the credit expires

• Installers and contractors who rely on incentives to drive business

• Local communities counting on clean energy jobs and grid resilience

The bill creates financial uncertainty, threatens supply chains, and shifts momentum back to fossil fuels—a move many experts view as economically and strategically shortsighted.

With a looming December 31, 2025 deadline for the 30% federal solar tax credit, now is the time for homeowners and businesses to act. The current political climate puts solar’s future on the line—and waiting may cost more than just money.

Energize Denver Compliance: What It Means and How to Get Ahead in 2025

Denver is making bold moves toward a more sustainable future—and commercial building owners are on the front lines. The Energize Denver ordinance is already in effect, and 2025 marks a pivotal year for compliance. But what exactly does the law require, who does it affect, and what steps should property owners take today to avoid penalties and capture energy savings?

This guide will walk you through the essentials of Energize Denver compliance, explore how it affects your building, and show how Cascade Solar & Electric can help you turn compliance into a strategic advantage.

What Is Energize Denver?

The Energize Denver ordinance, passed in 2021, is part of the city’s ambitious climate action plan. It requires most commercial and multifamily buildings over 25,000 square feet to:

• Benchmark and report annual energy use

• Complete an ASHRAE-level energy audit or electrification assessment

• Meet energy performance targets by phased deadlines (2025, 2027, 2030)

The ultimate goal: reduce building energy use 30% citywide by 2030 and cut greenhouse gas emissions.

Official Ordinance Info:
Visit the City of Denver’s Energize Denver homepage for full ordinance language and updated deadlines.

Who Needs to Comply?

If you own or manage any of the following property types within Denver, you are likely required to comply:

• Commercial buildings over 25,000 sq. ft.

• Multifamily properties (apartments, condos)

• Warehouses, industrial facilities, retail spaces

• Mixed-use developments

The city provides few exemptions, and enforcement is already underway. Missing deadlines or failing to submit benchmark data could result in steep fines.

Why This Matters in 2025

This year is a key milestone in the phased rollout. Energy audits or electrification assessments are due for many property types in 2025—and if you're behind schedule, your building could face penalties up to $2,000 per quarter.

But it’s not just about compliance. Upgrades like solar, LED retrofits, and energy monitoring can dramatically reduce your operating costs, increase asset value, and even qualify you for rebates and tax incentives.

How Cascade Solar & Electric Can Help

Cascade is more than a solar installer—we’re a full-service energy partner. We work with commercial property owners and developers to:

• Conduct ASHRAE-level energy audits

• Provide customized compliance plans

• Install solar energy systems and battery storage

• Retrofit LED lighting systems

• Upgrade panels and electrical infrastructure

• Submit benchmark reports and documentation

We make compliance simple, strategic, and aligned with your bottom line.

Free Download: Your Energize Denver Checklist

Want a clear, printable roadmap? Download our free guide: Is Your Building Energize Denver Ready? This checklist covers every step—from audits to upgrades—and includes tips on how to qualify for incentives and avoid fines.

Useful Resources:

• Cascade’s Energize Denver Compliance Services

• City of Denver Ordinance Summary

• ENERGY STAR Portfolio Manager

• Xcel Energy Rebates & Incentives

Final Thoughts

Energize Denver is more than a regulation—it’s an opportunity to improve your building’s performance, lower your energy costs, and position your property for long-term success. Don’t wait for a penalty notice to take action.

Contact Cascade Solar & Electric today to schedule your audit or create a custom compliance plan.

Schedule a Consultation