A bill passed by the House may eliminate the 30% federal solar tax credit after 2025. Learn what this means for Tucson homeowners—and how to plan smart before the deadline.

““If you’re thinking about solar, this isn’t the time to wait and see—it’s the time to run the numbers and take action.””

 

Is the 30% Solar Tax Credit Going Away? What Arizona Homeowners Need to Know Now

Homeowners across Tucson are taking advantage of the 30% federal solar tax credit to install panels, backup batteries, and energy-efficient upgrades. But if you’ve been waiting, don’t wait much longer—a bill passed by the House could eliminate that credit after December 31, 2025.

This isn’t about politics—it’s about smart timing. Whether you’re planning to install solar, replace your HVAC system, or upgrade your roof, understanding what’s changing could save you thousands.

What Is the 30% Solar Tax Credit?

The Residential Clean Energy Credit allows you to deduct 30% of eligible costs related to:

  • Solar panels, inverters, and batteries
  • Labor, permits, and wiring
  • Portions of roof replacement under solar arrays

For Tucson-area homes, this often translates to $15,000 to $25,000 in federal tax savings.

What Could Change in 2026?

The recently passed House bill proposes:

  • Ending the 30% federal solar tax credit after 2025
  • Eliminating the credit for leased solar systems
  • Removing credits for backup battery systems installed after 2025

To qualify, your system must be installed, inspected, and operational by December 31, 2025. If the bill becomes law in its current form, any installations after that date may not qualify.

Bundling Solar, HVAC, and Roof Upgrades? Good News (If You Plan It Right)

Here in Arizona, many homeowners choose to upgrade their HVAC or roofing at the same time as solar. Here’s how the tax picture looks when you bundle smart:

  • Solar portion: Eligible for the 30% federal credit
  • Energy-efficient HVAC: May qualify for up to $2,000 under a separate federal credit
  • Roofing under panels: May qualify as part of your solar system

📌 Tip: Make sure your contractor or solar installer provides a clearly itemized invoice so you can claim the full credit accurately.

Gas or Electric? What We Chose

We evaluated switching to an all-electric setup—but in Southern Arizona, winter sun angles and shorter days limit solar production. Electric heat would increase our utility costs unless we oversized the system and added extra battery storage.

So we chose a hybrid setup:

  • Kept gas heating and water heater
  • Installed solar + battery for all electric usage
  • Replaced roof before installation

It gave us the best mix of energy savings, reliability, and long-term ROI.

Why Timing Matters

Permits, product availability, and utility coordination can create delays. If you wait until late 2025 to start the process, you may miss the installation deadline and lose out on thousands in savings.

The time to plan is now.

Ready to See If Solar Makes Sense for You?

We’ve teamed up with one of Tucson’s most trusted solar professionals to help clients:

  • Run usage analysis
  • Explore cost savings
  • Maximize tax benefits with properly structured quotes

📩 Want an intro to our solar partner?
Contact us—we’re happy to help.