Solar still pays off for homeowners—even with the “Big Bill”

On January 1, 2026, the federal government’s “Big Beautiful Bill” (BBB) will end a major financial perk for U.S. homeowners: the 30% residential solar tax credit. On average, this credit saved homeowners $7,500 when installing panels and an additional $9,000 in electricity savings.

Wondering if you should still invest in solar panels? The answer is yes. Panels installed and turned on before the end of 2025 will still get the tax credit. And even if you miss the end of year deadline, it is still worth buying panels because we still have fair net metering in PA (getting credits for your solar energy!).

Read on to learn how the BBB will impact your energy bill and how you can lower costs by investing in solar. 

How does the BBB cut the solar tax credit?

The bill ends the residential tax credit of 30%for any clean energy expenses, such as solar panels, paid for after December 31, 2025. Homeowners who install solar panels on or after January 1, 2026 will not receive the 30% federal tax credit. Crucially, the 30% credit only applies to solar panel purchases, not leases.

Why will the BBB raise individuals’ energy bills?

Research from Energy Innovation, Rhodium, the REPEAT Project, and otherd all indicate that the BBB will raise our electricity costs.  Meanwhile, America is about to need more electricity than ever before. AI companies are building data centers all over the country that are “on course to account for almost half of the growth in electricity demand.” Frequent heat waves are also driving up electricity demand due to air conditioning use.  

Economics 101 teaches us that high demand and low supply lead to high prices. So with this high electricity demand, the best way to keep energy prices low is to maintain a healthy supply of energy sources. 

The BBB takes the opposite approach. It limits our ability to access energy by making clean energy more expensive with tax credit cuts and exclusively benefiting fossil fuel companies—providing generous tax deductions, federal land and water leases, methane fee eliminations, among other perks. 

Fossil fuels are more expensive to generate because companies have to extract and transport the fuel. Their pricing is also volatile because the fuel supply is limited and dependent on global events. Just a few years ago, the Russia-Ukraine war spiked gas prices because so many countries depended on oil from the region. 

Solar lowers energy bills because it’s cheaper to operate than fossil fuel generators, thanks to improved panel technology and efficiency in recent years. In 2023, the International Energy Agency (IEA) reported that an estimated 96% of new solar and wind plants had lower generation costs than new natural gas and coal plants, and 75% of them produced cheaper energy than the natural gas and coal plants. These financial benefits are exactly why so many countries across the world are investing in solar energy, including China, which just opened the world’s largest solar farm.

3 steps for getting solar panels (and saving as much as possible)

Prepare for rising electricity costs by investing in solar ASAP. With or without the tax credit, solar panels will cut your electricity costs thanks to PA’s fair net metering (more on that below!) Maximize these savings by following these tips throughout your solar panel process:

1. Collect installer recommendations and quotes ASAP

In an ideal world, you’re able to buy and install solar panels before the end of 2025 and get the 30% residential solar tax credit. That timeline is tight, though—especially since the full process usually takes 6 months, and many people will be trying to get the tax credit. 

If your goal is getting the credit, you’ll need to find potential installers by:

• Asking local friends and family with solar panels for installer recommendations. A referral you trust is by far the fastest way to find a reliable solar installer. 
  
• Using an online solar quote comparison tool, like EnergySageor Solar.com. Pick the top five to seven quotes based on your budget. If you’re overwhelmed by the information in each quote, this resource can help you decipher the details. 
  
• Reading online reviews to narrow down your picks. The solar quote comparison tools, Yelp, and Google are all great resources for finding installer reviews. Check what buyers say about each installer’s quality of service and typical timelines, so you can gauge whether completing your panels by 2025 is realistic. 

Pick your top three installers after following the steps above, and call each one to set up consultations. 

2. Determine the best way to pay for your panels

Solar panels are a major purchase, like a car, so most people end up financing them rather than buying them upfront. If you go this route, ask each installer at their consultation if they can set a payback period length that sets the monthly rate at the average amount of your monthly electricity bill. This setup essentially makes the panels free. 

Of course, this monthly rate will change depending on whether you receive the federal 30% tax credit by installing the panels before 2026. Stay on the safe side by assuming you won’t receive the credit when evaluating monthly payments and payback period lengths. This approach will leave you happy with your installer agreement regardless of whether you make the 2026 deadline. And if you do receive the credit, you get the benefit of a lower monthly payment and/or a shorter payback period. 

If you don’t want to finance your panels or pay for them upfront, some installers offer alternative ways to generate and use solar energy at your home. A power purchase agreement allows you to purchase solar energy generated at your home for a set period while the installer owns and maintains the panel system. 

Or, an installer may offer a lease agreement. Never sign a solar lease with escalator pricing, which lets the provider increase the rate over time. Ensure you’ll save money over your entire lease agreement by only agreeing to a flat monthly rate.  

Be sure to closely read the paperwork of your installer agreement so you understand the terms, particularly if you choose one of these alternative options. 

3. Sit back, relax, and enjoy your solar savings

Choose one installer based on the consultations, and they’ll handle the remaining steps of the process. In addition to handling the physical installation, your solar company will manage the various permits and certifications that are required to get your new solar panels up and running (and connected to the grid). 

Once your solar panels are installed, it’s time to enjoy net metering! In PA, net metering is thankfully a fair 1-to-1 credit system–meaning, solar users are paid the same per kilowatt hour as they would have been charged to consume that kilowatt hour. Solar installers here will automatically set up net metering, but this benefit is also common in many other states. If you live outside of PA, be sure to ask your installer (1) if you’re eligible for net metering and (2) if so, what kind of support they offer to set it up for customers. 

Can’t buy or lease panels? Demand community solar!

If buying or leasing panels doesn’t feel right for you, don’t count yourself out of solar! Consider community solar—a system where residents subscribe to a local solar farm and receive credits on their energy bill. 

Community solar isn’t available in PA yet, but Clean Air Council is hoping to change that. Take action and tell your local PA politicians you want them to support legislation that allows community solar.