Solar Energy Outpaces Wind Despite Loss of Solar Tax Credits
Americans will lose access to Federal solar tax credits on December 31st, 2025. The passing of the One Big Beautiful Bill Act earlier this month will eliminate a 30% dollar-for-dollar tax credit for homeowners.
But, even with legislative changes, solar power capacity is growing. For the first time, solar is generating more electricity than wind power. Data from the U.S. Energy Information Administration shows that solar generation in the last month was up 33% year over year.
How Does the Latest Solar News Impact Long Island Homeowners?
Growth in the solar industry might not change anything for you in the short term, but it is positive news considering that the Federal Government has pulled its financial support for this crucial emerging market.
A stronger solar industry means:
- More investment and innovation.
- Potential technological advancements, especially around solar panel efficiency.
- Better security for jobs and domestic businesses. Approximately 280,000 people are employed in America’s solar industry.
One thing that could affect you directly in the coming months is the elimination of the Federal solar tax credit.
What’s the Current State of Solar Tax Credits in New York?
In 2025, you can take advantage of a state solar tax credit, and the Federal tax credit still applies for the rest of the year.
- The NY State solar tax credit offers a 25% dollar-for-dollar credit (up to $5,000) based on the cost of your solar installation. It can roll over for up to 5 years, allowing you to claim the full amount in subsequent years if your tax bill is lower than the credit’s value.
- The Federal solar tax credit is worth 30% of the cost of your installation. This dollar-for-dollar credit has no monetary limit.
- Your solar installation on Long Island may also qualify for incentives paid directly to your contractor and taken off the top of your bill. This incentive varies depending on the size of your system.
The clock is ticking on the Federal solar tax credit. You will need to begin your solar consultation ASAP. To be eligible, your system must be planned, approved, and paid for (outright or through financing) before December 31st, 2025.
Can You Still Save Without Solar Tax Credits?
Even without the Federal tax credit, solar is a valuable investment. Solar saves you money by:
- Reducing the amount of electricity you buy from the grid.
- Compensating you for the excess energy you send to the grid (under a Net Metering agreement).
- State incentives can significantly reduce the real cost of switching to solar on Long Island or anywhere else in New York.
Solar will still be affordable in 2026, but waiting will diminish your potential savings. Talking to a Long Island solar installer today will ensure you are prepared for your installation and ready to take advantage of the federal credit. Any money you save on your solar installation will improve the return on investment you get from NY solar panels.
Talk to Your Local Solar Installer on Long Island
Power Solutions (previously known as Long Island Power Solutions) is your solar contractor for efficient and reliable energy solutions.
You can talk to us today for a free solar estimate and cost/benefit analysis. We will look at your average electricity usage, anticipate future growth, and help you evaluate the long-term savings that solar provides.
Join the solar revolution that is driving the expansion of clean and affordable energy in America.
