Is Solar Still Worth It Without the Federal Tax Credit?

— Rethinking Our Energy Choices as Incentives Fade

For decades, solar technology has evolved from an expensive niche product into a practical energy solution many households are considering. Behind this transformation, there’s been a powerful push from one source: federal subsidies.

When people decide to install solar panels, it’s often not just out of environmental commitment — it’s because someone, like a tax advisor, told them: “You could save thousands on your taxes.”

But what happens if that tax credit disappears? Is solar still worth it?

A Gradual Farewell to Incentives

Currently, the U.S. federal government offers a 30% Investment Tax Credit (ITC) to offset the cost of residential solar systems. Originally set to phase out, this credit was extended through 2032 under the Inflation Reduction Act.

Now, however, that support is once again under threat.

— In spring 2025, the House passed the ‘One Big Beautiful Bill Act’ to eliminate the residential solar tax credit by the end of 2025;

— The Senate’s version proposes a more gradual phaseout: reducing the credit starting in 2026 and ending it entirely by 2028.

Although these bills have not yet become law, the possibility of a rollback is already creating uncertainty — and prompting many to ask whether solar is still a smart investment without the subsidy.

Yes, It Will Be More Expensive

Take a $20,000 residential solar system: with the current 30% tax credit, you’d save $6,000. Without it, you’re paying full price.

The return on investment could shift from 7 years to 10 or more. For some households, that’s a significant difference.

But the Value of Solar Goes Beyond the Credit

Let’s take a step back:

— Electricity prices continue to rise. In many western states, rates are increasing by over 4% per year. The higher the cost of grid electricity, the more valuable your solar system becomes.

— Solar panels last a long time. Most come with 25-year warranties; inverters typically last 10 years or more.

— Solar boosts home value. For homeowners planning to stay long-term, it’s a worthy improvement.

In short: even if the fast-track payback is gone, solar still provides long-term, stable returns.

Should You Still Go Solar? Ask Yourself These Questions

— Is your roof unshaded and facing south or southwest?

— Is your annual electric bill over $1,500?

— Do you plan to live in your home for 10+ years?

— Can you afford to pay upfront or qualify for low-interest financing?

If you answered ‘yes’ to most of these, solar remains a smart option — even without the tax credit.

Why Solar Can Stand on Its Own

In fact, the removal of subsidies might mark solar’s arrival as a mature, self-sustaining industry.

— Costs have dropped over 80% in the last decade. Batteries and smart tech are also becoming more affordable.

— Some states are expanding community solar, making solar accessible for renters.

— New business models (like PPAs and leases) lower the entry barrier, enabling more people to go solar without massive upfront costs.

Solar is no longer just for the wealthy. It’s becoming a mainstream energy choice.

Final Thoughts:

Maybe we’ve grown too used to relying on policy incentives. We forget that the sun itself never sent us a bill.

If subsidies are the wind at your back, what happens when it stops? In a time of rising energy costs and growing climate urgency, will you still take the step toward cleaner, self-generated power?

Without subsidies, solar might not feel as glamorous. But it remains steady, transparent, and reliable.

Of course, this doesn’t mean we should give up on public incentives altogether. A fair and inclusive clean energy transition still needs thoughtful policy support.

But as the escalator slows down, maybe it’s time we start climbing at our own pace.

By Nevada Chinese Perspective