Are you a homeowner or renter thinking about installing solar panels or other renewable energy systems? A major tax change could affect your bottom line: 2025 is now the last year to claim the full 30% Residential Clean Energy Credit (RCEC) for solar and other eligible green energy improvements. Here’s what you need to know and how Berndt CPA can help you save.
What Is the Residential Clean Energy Credit (RCEC)?
The Residential Clean Energy Credit is a valuable federal tax incentive that allows homeowners and eligible renters to claim 30% of the cost of qualifying renewable energy systems, including:
Solar electric panels
Solar water heaters
Geothermal heat pumps
Small wind turbines
Other renewable energy solutions
This tax credit can dramatically reduce the cost of installing clean energy at your primary or secondary residence, vacation home, or rental property you live in. (Landlords who do not reside in the property are not eligible.)
Changes to the Solar Tax Credit: What’s New for 2025?
Until recently, the RCEC was scheduled to phase out gradually:
26% for systems installed in 2033
22% in 2034
0% after 2034
However, the passage of H.R. 1 (One Big Beautiful Bill Act) means the Residential Clean Energy Credit will now end early. The credit will be eliminated for systems installed starting in 2026, making 2025 the final year to qualify for the full 30% tax credit.
Key Takeaway:
You must complete and place your solar or renewable energy system in service by December 31, 2025, to claim the 30% tax credit.
Who Qualifies for the Clean Energy Tax Credit?
Homeowners and renters who occupy the property
Owners of primary, secondary, or vacation homes (if you live there)
The credit is non-refundable (it can only reduce the taxes you owe, but unused amounts can be carried forward to future years)
What Should You Do Now?
If you’re considering solar panels, geothermal systems, or other green energy upgrades:
Don’t wait! The process, from assessment to installation, can take time.
Schedule your installation now to avoid missing out due to end-of-year bottlenecks or delays.
Consult with Berndt CPA for tax planning and to maximize your available credits.
Why Act Now?
Missing the December 31, 2025 deadline—even by one day—means you could lose the entire 30% tax credit. With energy prices rising and government incentives changing, this may be your best (and last) opportunity to make a smart investment in your home and the planet.
Contact Berndt CPA Today!
Our team of tax experts is ready to help you assess your eligibility, navigate tax credits, and make the most of every financial opportunity. Contact us to schedule your consultation or to get answers to your energy tax credit questions.
