The 30% federal residential solar tax credit is still available for projects completed in 2025. But here’s the honest truth: no reputable solar company can promise your project will be finished in time to qualify. Demand is at an all-time high, and township permitting offices, inspectors, and utility companies are already feeling the strain. Too many steps depend on third parties outside of their control for any company.
This isn’t just a New Jersey problem — the same delays are playing out in Connecticut, Pennsylvania, and across the country. If your goal is to secure the 30% credit, the earlier you start the process, the better your odds.
But here’s the good news: given the recent increases in electricity rates, purchasing and owning your solar system will still make economic sense without the 30% residential tax credit. You also have other strong options — including Power Purchase Agreements (PPAs) and leases.
What Changed in 2025
On July 4, 2025, the “One Big Beautiful Bill Act” became law, ending the Residential Clean Energy Credit (IRC §25D) for homeowners after 2025. In other words, the 30% tax credit is gone for residential projects that don’t meet the 2025 requirements. Commercial solar and certain third-party owned systems (like PPAs and leases) will still benefit from other federal incentives, but homeowners who buy their system outright after 2025 won’t get the same break.
Why No Timeline Is Guaranteed
Solar projects involve multiple steps, each dependent on outside approvals:
- Local Municipal Permitting
- Utility Approval to Interconnect the system pre-installation
- Township Inspections after construction
- Final Utility review and issuance of their Permission to Operate (PTO)
In all three of our service states — NJ, CT, and PA — these agencies are experiencing heavy backlogs. Even when an installer moves quickly, township and utility queues can push projects weeks or months past their expected completion date.
The Role of PPAs & Leases going forward
For many homeowners, the end of the 30% credit for purchased systems changes the equation, but it doesn’t end the benefits of going solar. With a Power Purchase Agreement (PPA) or lease, you don’t have to buy the system outright. Instead, a third party owns and maintains the panels, and you pay for the power they produce (PPA) or a fixed monthly lease payment.
Here’s why PPAs and leases remain attractive in 2025 and beyond:
- No upfront cost: You can start saving without a large cash payment
- Fixed energy costs: Swap your unpredictable utility bill for a stable, often lower monthly payment
- No maintenance responsibility: The provider handles monitoring, repairs, and upkeep for the life of the system
- Access to incentives: In many cases, the system owner can still use available incentives, passing the savings on to you through lower rates.
A Smarter Way Forward
If your main goal is to reduce your electric bill and protect yourself from future rate hikes, a PPA or lease can achieve that, without worrying about missing the federal credit. And for homeowners who do want to own their system, starting now is the best way to maximize your chances of completing the project on time.
Given the recent increases in electricity rates, purchasing and owning your solar system will still make economic sense without the 30% residential tax credit.
The Bottom Line
Whether you’re in New Jersey, Connecticut, or Pennsylvania, the reality is the same: no installer can guarantee you’ll meet the 30% tax credit deadline in 2025. But you can still lock in lower, predictable energy costs through a PPA or lease, and enjoy the benefits of solar immediately.
Our team works across all three states and will give you a realistic timeline based on your specific town and utility, and we have multiple options for PPAs, leases, and purchases so you can choose the best fit for your home and budget.
Ready to explore your options? Contact us today for a clear, no-pressure consultation.
