Millions of Dollars in Tax Credits This Year, but What’s in Store for Next Year?

This program is making a massive difference for homeowners. Freedom Solar customers who installed solar in 2024 will see a cumulative tax return of more than $27 million—an average of $9,900 per customer.

But there’s no question that, given everything that’s happening in the world, our prospective 2025 customers are a little more concerned than usual about the future of these programs.

“We did have a few clients mention that they are worried that the tax credit will be pulled before their solar project finishes,” said Phil Aninzo, our Houston Sales Manager.

After talking with everyone from tax lawyers to market analysts to political pros, here’s how it looks to me:

1. Solar and storage credits should be on firm footing through 2025.
2. Their future in 2026 and beyond is a bit less clear.

Let’s start with 2025: it’s really, really hard to take away a tax credit in the middle of a tax year. Changes to the tax code require an act of Congress, and these tax credits are part of U.S. law. They can’t just be rescinded by someone unilaterally signing a piece of paper, even the President.

It’s the future that’s cloudy. Politics are volatile everywhere, but especially in Washington. And there’s no question that these technologies — which help people generate their own power, store it, and use it when they need it — have enemies: after all, when you save money on your power bill, there’s a utility or power plant that’s not getting paid.