The federal solar tax credit is scheduled to end after 2025, which means the current 30% incentive will be eliminated. There are plenty of doomsayers predicting the end of the industry, but we have seen this before. In fact, these cycles are part of solar. Net meter rules changed in 2013. The tax credit was originally supposed to disappear in 2016. Every time the industry has faced a change, Hot Purple Energy has stayed ahead of it. Even though we’ve positioned ourselves well, we are grateful to have been supported by great clients and a resilient community. For us, it’s just another day in the solar industry.
While the residential credit is going away, there will still be creative financial pathways to realize all or most of the credit in 2026 and 2027. But even without those options, the economics of solar are not falling apart. On October 1, Southern California Edison raised rates by 13%, which has already offset nearly half of what the 30% tax credit covers. If this trend continues, the cost of going solar without the credit in late 2026 may be nearly the same as installing a system in 2025 with the credit. Energy rates will keep rising. Solar will keep producing. The math continues to work.
Hot Purple Energy remains committed to helping homeowners navigate these changes with clarity and confidence. If you have questions about timing, cost, or the options available, we are here to help. Contact us today.