Published: Thursday, May 15, 2025

House Leadership Wants to Kill the Arizona Residential Solar Tax Credit

Imagine you’re finally ready to take control of your electric bill. You’ve done the math, talked to your neighbor who swears going solar was the best decision they’ve made, and you’re prepared to make the leap. That’s when Congressional Republicans push to eliminate Residential Solar Tax Credits, prompting Washington to quite literally pull the plug on renewable energy incentives.

This week, Congress moved one step closer to eliminating the 30% residential solar tax credit for residential solar—known as Section 25D—by the end of 2025. For millions of Americans, this credit has meant the difference between dreaming about solar and actually affording it. It’s helped homeowners break free from utility monopolies and kept energy bills manageable. Now, it’s on the chopping block, thanks to a draft bill that passed the House Ways and Means Committee.

A Looming Deadline for Residential Solar Tax Credit in AZ 

If passed, the bill would make 2025 the final year for homeowners to claim the full 30% credit. That’s not much time for families trying to plan one of the biggest home upgrades of their lives. But it’s not just homeowners feeling the pressure. This abrupt policy shift threatens to derail the momentum of an industry that supports over 250,000 jobs nationwide and injects billions into local economies—including right here in Arizona. 

Solar Topps is not like other companies we aren’t waiting around for the Senate to decide our future. Our business has never relied on the solar tax credits, so with or without them Solar Topps is built to be here or  the rest of the industry will be struggling to survive. 

Implications for the Industry

Solar Topps has been in business for over 16 years and is built to thrive for decades to come. While many solar companies may struggle with the reduction or removal of residential solar tax credits, we stand apart. From the very beginning, our business model was designed to provide value independently of tax credits, ensuring our customers’ ability to save remains strong.

Choosing the right solar company can be challenging. Many companies overextended themselves by relying on cheap, easily accessible loans when Federal Reserve rates were near 0%. Unfortunately, this left many overleveraged and unable to survive economic changes, resulting in bankruptcies and unfinished installations.

At Solar Topps, we took a smarter approach. We avoided the risky trends and are proud to operate as a debt-free company. This financial stability means you can trust us to deliver high-quality solar solutions with significant savings that are not reliant on fleeting incentives.

Don’t settle for just any solar company. Choose Solar Topps—your reliable partner for long-term energy savings and peace of mind.

With or Without the Residential Solar Tax Credit- Solar Topps Always Makes Sense

We won’t sugarcoat it: for most solar companies, losing the 25D credit would hurt.  Solar Topps is not most companies and the case for solar remains strong. 

Electricity rates across Arizona have jumped nearly 15% over the last two years (EIA, 2024), and they’re not slowing down. Every month you wait is a month you pay more for the same energy you could be producing yourself. Even without a tax credit, solar systems in the Southwest generally pay for themselves within 8 to 10 years (NREL, 2024). 

And if you’re thinking long-term? Homes with solar tend to sell for 4.1% more on average (Zillow, 2019). 

The bottom line is control. When you go solar, you decide how much you pay and where your power comes from. That freedom doesn’t expire—even if a tax credit does. 

This Is the Moment to Mobilize in Support of the Residential Solar Tax Credit

The bill now moves to the Budget Committee for markup on Friday, with a full House vote possible before Memorial Day. The Senate would be next. That gives us just a few weeks to push back. Here’s what you can do right now: 

Tell Congress: Do not kill the 30% Residential solar tax credit.        

Here are a couple of forms one to Demand Congress Defend American Energy & another to Protect rooftop solar and storage in the U.S.A! Use this energysage resource to find key members of the House and Senate to contact.
Call Scripts for Opposing Proposed Elimination of the 30% Residential Solar Tax Credit (Section 25D). (1)

Join SEIA’s 25D Defense Call

Monday, May 19th, 2025 at 12:30 PM ET — Get organized with national leaders, messaging strategy, and next steps. dfc. 

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Post it, text it, email it to your friends. This fight will be won person by person, voice by voice. 

Our Commitment to You

At Solar Topps, we’re not backing down. We’re continuing to help Arizona homeowners make the solar switch—before the credit disappears. We’re also expanding options for businesses and exploring flexible models to make solar accessible, no matter what comes out of D.C. 

What’s Next: A Race Toward Commercial and Leasing Models

While residential customers face the threat of higher out-of-pocket costs, commercial and industrial solar projects may find a more forgiving path. Under Section 48E, the 30% credit for C&I projects would begin a gradual phase-out starting in 2029—dropping to 80%, then 60%, then 40%, before disappearing entirely in 2032. We’ve written a detailed blog exploring how this legislation could shape the future of commercial and industrial solar: Ending Homeowners Solar Tax Credit Could Spark a Commercial Solar Boom.

Don’t wait. If Congress eliminates 25D, it’ll be gone after December 31, 2025. Demand will spike. Timelines will stretch. And homeowners who act now will save the most. This means that homeowners who install solar panels before these deadlines can take advantage of significant savings on their investment.

But what if you don’t have the funds to make an upfront investment? That’s where leasing models come in. With solar leasing, you can still reap the benefits of solar energy without having to pay for the system outright. Instead, you enter into a lease agreement with a third-party company who owns and maintains the system on your property. In return, you pay a monthly fee for using the system and

Get Your Free Solar Quote Today » 

Because no matter what happens in Washington, the sun still rises—and we still believe it should rise for everyone.