30% solar tax credit set to end this year

SAN ANSELMO, Calif. - One of the many things contained in the President's 870-page "Big Beautiful Bill" was a repudiation of tax credits for the installation of renewable energy systems in homes and businesses. 

If you're on the fence about getting solar for your home, it's time now to get off the fence.

Ending solar tax credits

What we know:

Jason Hamilton founded EarthWise Energy in San Anselmo 15 years ago. He's lived and grown through the ups and downs of government whims. 

"We call it the solar coaster, because forever, solar has been driven by incentives," said Hamilton.

The latest whim is a serious threat to him and all solar installers. 

The 30% federal solar tax credit, purchased with cash or a loan, abruptly ends on December 31 of this year due to changes stemming from President Trump's "One Big Beautiful Bill" signed last month.

This change wipes out provisions of the Inflation Reduction Act which extended the 30% credit until 2032, phasing it out in 2035. 

"To have it cut cold turkey, is a bit shocking. It's definitely gonna affect the industry," said Hamilton.

The Trump administration also wiped out $7 billion in grants to low-income homeowners. Leased solar systems will continue with the credit until 2027, but that puts a lien on your home.

Professor Severin Borenstein is a renowned energy economist with the UC Berkeley Haas Business School Energy Institute.

"This is going to be a big hit to the growth of solar power as a major source of electricity. It's going to make it much less economic for households to adopt solar," said Borenstein.

December is just around the corner. 

"We will see a big run-up in installations through the end of the year. But after that, we'll see a big drop-off and that is just bad for the economy of the solar industry," he said. 

Over the last three years, PG&E rates have spiked 50%. So, if you want solar, get in line. 

"No later than the end of October if we need to get it installed by the last day of the year," said Hamilton.

Also, the end of tax credits for wind energy will be a huge setback for renewable, non-polluting, clean energy, as well as the fight against accelerating climate change. 

Tariffs will also raise the price of solar panels and wind equipment. "If they're going to go solar, you got to do it now," said Hamilton.

The oil industry will retain almost all their government subsidies. 

In short, fossil fuel companies won, renewables lost, and we are all paying for it.