Lock In the 30% Federal Solar Credit in 2025 Before It Disappears
If you’re thinking about pairing solar panels with a new metal roof, there’s never been a more urgent time to act. Thanks to recent changes in federal legislation, homeowners only have until December 31, 2025, to claim one of the most valuable clean energy incentives available: the 30% residential solar tax credit.
Here’s what you need to know to take advantage of it—before it’s gone for good.
What Is the 30% Solar Tax Credit?
The federal solar investment tax credit (ITC) allows homeowners to deduct 30% of their solar installation costs directly from their federal tax bill. It’s a dollar-for-dollar tax credit, not a deduction, which means real savings.
For example, if your system costs $20,000, the credit can reduce your taxes by $6,000.
There are:
- No income limits
- No caps on the claim amount
- And historically, you could carry over unused credits to the next tax year—though this may no longer be possible under current law
When Does the Solar Tax Credit Expire?
The tax credit ends after December 31, 2025, with no phase-down period. Unlike earlier versions of the policy that gradually reduced the credit over time, the new law cuts the residential solar credit entirely in one move.
To qualify, your system must be fully installed and granted permission to operate (PTO) by your utility before the end of 2025. Delays in permitting, supply chains, or installer availability could push projects into 2026—disqualifying you from the credit. That’s why planning now is essential.
What Does (and Doesn’t) Qualify for the Credit?
To claim the 30% tax credit, you must own your system outright—leases and power purchase agreements (PPAs) don’t qualify.
Covered:
- Solar panels and inverters
- Mounting hardware and wiring
- Labor and permitting
- Energy storage systems (3kWh+)
- Sales tax on eligible components
Not Covered:
- Tree removal or trimming
- General roof repair or replacement (unless structurally necessary for solar—ask your tax advisor)
While standard roof replacements don’t qualify, a new metal roof installed to support a solar system may be partially eligible if it functions as a solar mounting platform. Mountaintop Metal Roofing can help you explore this option.
Key Eligibility Checklist
- You own your solar system
- It’s installed and operational by December 31, 2025
- You owe federal income tax in 2025
- You file using IRS Form 5695 and Schedule 3 with your Form 1040
We recommend working with a licensed tax professional to ensure eligibility and proper filing.
What If I Don’t Have a Large Tax Bill in 2025?
Previously, homeowners could roll over unused credit to the next tax year. However, the new policy may eliminate this option. If your tax liability is low in 2025, you may only be able to claim part of the credit—so speak with a tax pro to strategize early.
Can I Still Stack Local or State Incentives?
Absolutely—and you should!
Many Oregon and Washington homeowners can combine the federal tax credit with:
- Oregon Energy Trust rebates (limited availability)
- Washington solar sales tax exemptions (through 2029)
- Utility rebates or net metering programs
- State solar tax credits or SRECs, depending on location
These programs vary widely, so it’s smart to consult with local experts or use a site like EnergySage to explore what’s available in your zip code.
Washington State Solar Tax Exemption: Save Thousands on Your Installation
Washington makes it easier for homeowners to go solar by offering a full sales and use tax exemption on qualifying solar energy systems. If your system is under 100 kilowatts (which includes most residential installations), you won’t pay any state or local sales tax on your purchase.
That translates to $2,000 or more in savings for the average homeowner—on top of the 30% federal tax credit still available through the end of 2025.
How It Works:
- Applies to solar systems under 100 kW, including nearly all home setups
- Valid through December 31, 2029
- Eliminates state and local sales and use tax at the time of purchase
- Total savings depend on your local tax rate—but the exemption is statewide
This tax break is available regardless of whether you take the federal tax credit—though the two incentives stack beautifully to maximize your return on investment.
If you live in Washington and are considering solar (especially with a long-lasting metal roof underneath), now is the perfect time to act while both incentives are still available.
Oregon Solar + Storage Rebate: Extra Savings for Eligible Homeowners
If you live in Oregon, you may qualify for a state rebate that reduces the upfront cost of your solar (or solar + storage) system—in addition to the 30% federal tax credit.
Who’s Eligible?
- Oregon homeowners using an ODOE-approved contractor
- Both low/moderate-income households and general applicants can qualify
How Much Can You Save?
- Low/moderate-income homeowners: Up to $1.80 per watt, capped at $5,000 or 60% of system cost
- All other homeowners:
- With utility rebate: $0.20/watt, up to $5,000
- Without utility rebate: $0.50/watt, up to $5,000
- Battery storage rebates: Up to $2,500–$15,000, depending on income and storage capacity
How It Works:
- Your contractor reserves the rebate before installation
- The rebate is applied directly to your project cost—no paperwork hassle
- Funding is limited, so early action is encouraged
This state rebate stacks with the federal solar tax credit, making 2025 a powerful window to invest in solar + a long-lasting metal roof.
How a Metal Roof Supports Your Solar Investment
If you’re considering solar, now is the perfect time to upgrade your roof—especially if your current roof is older or made from short-lived materials like asphalt shingles.
Mountaintop Metal Roofing provides:
- Lifetime aluminum or copper roofs—never replace your roof under panels
- Solar-compatible profiles that simplify racking attachment
- Eco-friendly materials that boost your home’s sustainability profile
- Experienced coordination with solar installers to keep your project on schedule
Frequently Asked Questions (FAQs)
Q: When do I file for the solar tax credit?
A: You file for the ITC in the tax year your system is installed and receives permission to operate from your utility—not just when it’s physically installed.
Q: Can I use the credit if I don’t owe federal taxes in 2025?
A: You must have a tax liability to use the credit. Rolling it forward to future years may no longer be allowed under current rules, so plan accordingly.
Q: Does a new roof qualify for the credit?
A: General roof replacements do not, but roofing systems that directly support solar—such as certain metal roofing—may be partially eligible. Check with your tax preparer.
Q: Will there be any credit in 2026?
A: No. Under the current law, the residential solar credit is eliminated starting January 1, 2026.
Q: Can I combine solar and roofing into one project?
A: Yes—and we recommend it. Coordinating both projects helps avoid delays and ensures your system qualifies before the deadline.
Act Now Before the Tax Credit Disappears
The 30% federal solar tax credit is ending on December 31, 2025. There will be no gradual phase-out, no extensions, and no second chances. That means 2025 is the year to take action.
Pairing your solar system with a Mountaintop metal roof gives you:
- A permanent, durable foundation for solar
- Protection that lasts far beyond your panels
- A trusted team that makes the process simple, stress-free, and deadline-ready
Ready to Lock in Solar Savings?
Mountaintop Metal Roofing is here to help you build a solar-ready roof that lasts a lifetime—and make sure you don’t miss out on this historic opportunity.
Contact us today for a free estimate and timeline review.