Thinking about going solar comes with many questions, especially when it comes to financing the project. One of the best incentives for switching to solar energy is the federal solar tax credit, also known as the Investment Tax Credit (ITC). While big changes are coming up for this tax credit, you can still claim the credit on your taxes in 2026.
Follow our team at Solar Bear Orlando as we share how.
How the Solar Tax Credit Works
The federal solar tax credit allows homeowners to deduct a percentage of their solar installation costs from their federal taxes. Right now, the credit is set at 30%, and had been planned to extend through 2032, but it is now going to end on December 31st, 2025.
Taking advantage of the solar tax credit means that if your solar system costs $20,000, you could get $6,000 back as a tax credit. It’s not a rebate or a check in the mail, but it directly lowers the amount of taxes you owe, which is a pretty big deal.
Claiming the Credit in the Year After Installation
Because this is the last year to claim the tax credit, you will be able to file for the credit on your 2026 taxes. The key thing to remember is that the system must be installed and operational by December 31, 2025, to qualify for the credit.
Act Now
The Inflation Reduction Act initially had the incentive diminishing into the 2030s but the One Big Beautiful Bill Act, which was signed on July 4th, 2025, put an end to the phase-out schedule. Now it is going to expire after 2025. This means you must act now if you want to take advantage of the tax credit’s savings.
Remember, to take advantage of the full 30% savings, your system needs to be installed and operational by December 31, 2025—so the clock is ticking!
Read More > Is Going Solar Worth It After the Tax Credit Ends?
What You’ll Need to Claim It
When tax time rolls around, you’ll just need a few things to claim your credit:
- Documentation from your installer showing the total cost of your system (including equipment, labor, and permitting)
- IRS Form 5695 (Residential Energy Credits) filled out and submitted with your federal tax return
If you use a tax preparer, they can handle this part for you. If you file yourself, the IRS provides instructions for the form online. It’s fairly simple—and worth the effort, especially since this is the last year to claim it!
Why Going Solar in 2025 Still Makes Sense
Though the tax credit is going away very soon, going solar still is a great idea! Our ample sunshine in Central Florida makes solar panels especially effective, and the sooner you install them, the sooner they start paying for themselves.
And with energy costs always creeping up, a solar system can help you take control of your monthly bills while increasing the value of your home. Plus, it feels good knowing you’re powering your home with clean energy.
Ready to Make the Switch? Call Solar Bear Orlando
If you’ve been thinking about solar, now’s the time! If you install in these last few months of 2025, you can claim the federal credit in 2026 without any problem—and our team at Solar Bear Orlando can help you every step of the way. We make the process easy, from design and permits to installation and paperwork.
Call Solar Bear Orlando today at (727) 353-3886 to schedule your free solar consultation and start planning your 2025 installation before the credit disappears.