It’s not too late to get the 30% solar tax credit — unless you live in THESE states

Just as we saw with EVs in September, there’s a broad, documented surge in demand for home solar tied to the 30% Federal tax credit expiring December 31st. And, while it’s still not too late for many Americans to go solar, contractors in North Carolina, Florida, and Arizona say their 2025 calendars are jammed.

Back in August, EnergySage noted a 205% year-over-year increase in homeowners actively working with solar installers, and observed an all-time high in solar customer inquiries immediately following the passage of the OBBA — a sentiment echoed by installers everywhere.

“When the Big Beautiful Bill passed, and they ended 25d, we signed up like 200 people in a couple weeks,” Bryce Bruncati, director of residential sales at 8MSolar in Raleigh, told WFAE in Charlotte. “So, all solar installers in North Carolina right now are booked through the year.”

In states like Arizona, installers are seeing a similar rush from residents hoping to sneak their systems in under the wire.

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“An average system might be around $25,000,” explains Tyler Carlyle, the owner of Bright Home Energy in Phoenix. “You start doing the math, 30% for federal tax credit, $1,000 from state, you’re talking $10,000 in savings by going solar now purchasing the system.”

But more demand means less supply, and running out of solar panels is only one of the issues slowing down lead times, which have been stretching from weeks to months recently, and whether you want to blame that on a lack of federal agents processing imports, a growing trade war limiting the amount of materials contractors can work with, or ongoing the ICE raids that are exacerbating a national construction labor shortage by illegally targeting hardworking Americans because of the color of their skin, the fact remains that many homeowners are eager to lock in the full 30% federal solar tax credit are finding installers short supply, and many installers are scrambling to install systems before the December deadline.

FOMO is real

As we recently discovered, taking advantage of tax credits and saving money are not the primary drivers for home solar adoption among Electrek readers. But while it’s obvious that Electrek readers are objectively better people, that doesn’t mean they don’t like saving money — and the window to do so on a home solar project is rapidly closing.

“Every month you wait puts your incentives at risk,” reads the copy at Florida Power Services. “The permitting process, equipment supply, and installer availability are already creating challenges for homeowners across Pinellas County.”

The site goes on to note that Pinellas County solar installation plan reviews are already delayed more than four weeks, and every week that passes adds to the backlog. “Your system could get stuck in permitting and never make it to installation before incentives expire,” reads the copy. “By starting early, you secure your place in line and give your project the best chance to be completed on time.”

Don’t lose hope, but don’t get stuck

While it may seem like it’s already too late (and, for some of you, it might be), don’t lose hope. Remember that under IRS Form 5695 for systems installed on existing homes, the credit is available in the tax year when the system is “placed in service,” but what exactly that means and whether interconnection or utility “permission to operate” (PTO) is strictly required to meet that “place in service” standard depends on various state and local rulings — and there seems to be plenty of wiggle room in there.

What’s more, I was able to find at least one private-letter IRS ruling said a solar project could qualify as “placed in service” even though utility interconnection (or, “tie-in”) was not yet complete, which could imply that there’s some wiggle room for eligibility baked in at the national level, as well.

As ever, I want to close this one out with a disclaimer and remind you that your favorite journalist (me, obviously) is not an attorney. Especially when it comes to big dollar stuff like this, connect with local experts who do this stuff every day, and maybe consult a tax professional, too, to be on the safe side.

Source links throughout article; featured image via UCF.

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