Trump is back in office, and if you're a homeowner considering solar panels, you need to pay attention. His administration is making changes that could cost you thousands more for solar or eliminate tax savings altogether. Here's what's happening and what you need to do to protect yourself.
Key takeaways
The 30% tax credit that saves homeowners thousands on solar might end this year. In May 2025, the House passed a bill to kill the 30% tax credit on December 31, 2025. This is way earlier than planned – it was supposed to last until 2032. If you want the full tax credit, your solar system must be installed and inspected by December 31, 2025.
The bill still needs to pass the Senate. Some Republicans don't like ending the tax credit so fast. But time is running out, and solar companies are already seeing lots of homeowners rushing to beat the deadline.
Here's what this means for your wallet: If you spend $20,000 on solar panels, you'd save $6,000 with the 30% tax credit. That's a huge difference that could change whether solar makes sense for you.
Trump’s trade taxes are making solar equipment more expensive. The government put huge taxes on solar panels from Cambodia, Vietnam, Malaysia and Thailand – some as high as 3,521%. These countries used to supply 80% of America's solar panels.
In March 2025, Trump added more taxes on stuff from Canada, Mexico, and China. Even solar panels made in America cost more now because they use parts from other countries that now have higher taxes.
The problem isn't just panels. Batteries will cost a lot more too because most battery parts come from China. If you want solar panels plus a battery backup system, expect to pay more.
People are losing their jobs, and the industry is getting hurt. The CEO of Sunrun said these changes could cost 250,000 jobs and make electricity more expensive for everyone. Many of these are local installation jobs that support small businesses in your community. Interest rates are already high, and now solar panels cost more because of trade taxes. Killing the 30% tax credit will really hurt small solar installation companies across the country.
Your electric bill will probably go up faster. Electric companies rely on materials from other countries to build and fix power lines. Higher trade taxes mean electric companies will charge customers more to cover these costs.
You have less time to decide. Solar projects usually take several months from start to finish. With everyone rushing to beat the tax credit deadline, it will take even longer. If you're thinking about solar, waiting could cost you thousands and cause long delays.
Many Republicans like solar too. About 81% of clean energy money has gone to Republican areas, creating jobs that local politicians want to keep. Some Republican senators are fighting against the bill, which gives the solar industry some hope.
States also still support solar. Many have their own solar deals that don't depend on federal rules. California, Florida, Texas, and other states keep helping homeowners go solar through rebates and other programs.
Big companies still want solar too. Companies like Amazon, Google, and Walmart are still buying lots of solar power because it saves them money over time. This helps keep the solar industry stable even when politics get messy.
Good news: Solar technology keeps getting better and cheaper. Even with political problems, experts say solar power will keep getting less expensive. Technology improves regardless of what politicians do.
With all these changes happening fast, homeowners need to take action if they want to save money on solar. The clock is ticking on the tax credit, and equipment prices are going up. Here's what you should do to protect yourself and still get a good deal on solar.
The solar industry faces big challenges under Trump's second term, but solar power still makes sense. Solar still saves money over time, gives you energy independence, and protects you from rising electric bills. But the window for maximum savings is closing fast.
For homeowners ready to control their energy costs, the message is simple: Start planning now, get your permits ready, and aim to finish in 2025. Waiting until 2026 could cost you thousands in lost savings and higher equipment prices. The sun will keep shining no matter who's in Washington – make sure you're ready to capture that free energy for years to come.
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