The Solar Tax Credit (ITC) Expired December 31, 2025
Published: May 23, 2025
Updated: February 16, 2026
The Solar Investment Tax Credit (ITC), a key federal policy that made solar energy more affordable for millions of Americans, officially ended on December 31, 2025. Its expiration marks a significant shift for the renewable energy industry, impacting both residential and commercial solar projects.
At Solar Topps, we’re here to guide you through this new era of solar energy and offer alternative solutions to ensure solar remains an accessible option for homeowners and businesses.
What Does the End of the ITC Mean for Solar Energy?
The ITC allowed homeowners and businesses to deduct up to 30% of the cost of installing a solar energy system from their federal taxes. This incentive helped lower upfront costs and encouraged the adoption of clean energy. However, with its expiration, solar installation costs may now feel higher for many, potentially discouraging new installations.
Key Updates Post-ITC Expiration:
- Higher Installation Costs: Without the 30% tax credit, the upfront cost of going solar has increased for homeowners and businesses.
- Reduced Incentives for Leasing: Solar leasing companies can no longer benefit from federal tax credits for new installations, making traditional leasing less appealing.
- Stricter Project Deadlines for Commercial Developers: Commercial and utility-scale projects must now adhere to tighter timelines and stricter compliance rules to qualify for any remaining state or local incentives.
- No Federal Incentives for Foreign Components: New projects using components from prohibited foreign entities are disqualified from any federal incentives.
Prepaid Solar Leasing: A New Alternative
Although the ITC is no longer available, Solar Topps is introducing Prepaid Solar Leasing as an affordable and flexible option for homeowners looking to go solar without the high upfront costs.
What is Prepaid Solar Leasing?
Prepaid Solar Leasing allows you to pay a one-time, upfront fee for the use of a solar energy system for a set term (typically 20–25 years). This option provides the benefits of solar energy—such as reduced electricity bills and energy independence—without the long-term financial commitment of purchasing the system outright.
Benefits of Prepaid Solar Leasing:
- Lower Upfront Cost: Prepaid leasing costs are lower than outright purchasing a solar system and still provide significant energy savings.
- No Maintenance Costs: The leasing provider covers system maintenance, so you don’t have to worry about repairs or upkeep.
- Immediate Savings: Start saving on your electricity bills from day one without the need for federal tax credits.
- Flexibility: Perfect for homeowners seeking an affordable, hassle-free way to adopt solar energy.
Why Solar Topps is Your Best Choice After the ITC
At Solar Topps, we’ve been serving Arizona for over a decade, adapting to industry changes and continuing to provide reliable solar solutions. Here’s what sets us apart:
We Have the Equipment You Need
Thanks to our strong supply chain, we have solar panels, inverters, and batteries ready for installation. No waiting, no delays—just efficient service.
We Install Quickly and Efficiently
Our skilled in-house team ensures your solar system is installed on time and with the highest quality standards. With us, you can trust that everything will run smoothly from start to finish.
We Offer Long-Term Stability
With over 10 years of experience in Arizona, Solar Topps is here to stay. Our commitment to homeowners and businesses remains steadfast, even as federal policies evolve.
The Future of Solar Energy with Solar Topps
The expiration of the ITC is a challenge, but it’s not the end of solar energy. State-level incentives, utility rebates, and alternative financing options like Prepaid Solar Leasing are still available to help make solar a smart choice for your home or business.
Lock in Your Solar Savings Today
Don’t let the end of the ITC discourage you from going solar. Schedule your free site assessment today and let us help you find the best solution for your energy needs. Whether it’s purchasing a system, exploring prepaid leasing, or learning about other incentives, we’re here to guide you every step of the way.
Contact us now or schedule your free site assessment to secure your solar savings and take control of your energy future.
Solar Topps: Your Partner in Renewable Energy
The ITC may be gone, but your opportunity to embrace clean, affordable energy hasn’t. Join the Solar Topps family today and discover the difference we can make for your home or business.
