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Will the solar tax credit come back?

Cayden Chern4 min read
Informational

The short answer

Nobody can say whether the residential solar credit returns. Repeal came through primary legislation in 2025, so restoring it would take the same. A homeowner deferring on that basis is deferring indefinitely, while their utility bill keeps rising and the third-party credit that does still exist runs against a deadline at the end of 2027.

  1. 01The credit was repealed by statute, so only new legislation could restore it.
  2. 02No sale should be built on a guess about future law, including an optimistic one.
  3. 03The cost of waiting is real: bills paid in the meantime, and a 48E deadline that does not move.
  4. 04Never promise a customer the credit is coming back. That is a claim you cannot support.

Every solar rep is now hearing a version of the same sentence: I will wait and see if it comes back. It is a reasonable thing for a homeowner to think and a terrible thing for them to act on, and the way you answer decides whether you are still in the conversation five minutes later.

What is the honest answer?

That nobody knows, and that you should be suspicious of anyone who says otherwise. Section 25D was repealed by the One Big Beautiful Bill Act, which is primary legislation. Undoing that requires Congress to pass something new, and the fact that a thing is popular does not make it imminent.

Say that plainly. A rep who admits they cannot predict Congress is more credible for the rest of the appointment than one who offers a confident forecast, and homeowners can tell the difference.

What does waiting actually cost?

This is the part of the conversation that is yours to win, because it is arithmetic rather than prediction.

  1. 01

    Every month of waiting is a bill paid in full

    A homeowner deferring for a year pays twelve more utility bills at the full rate. Put their actual number on that: their bill, times twelve. It is usually a larger figure than they expect to see written down.

  2. 02

    Utility rates are not waiting with them

    The comparison they will make next year is against a higher rate, not today's. Deferring does not freeze the alternative in place.

  3. 03

    The credit that does exist has an end date

    Third-party ownership still carries thirty per cent through Section 48E, and projects starting after 4 July 2026 must be placed in service by 31 December 2027. Waiting for a credit that might return can mean missing the one that is actually here.

  4. 04

    Install calendars fill

    If a policy change ever does land, everybody moves at once and lead times stretch. Being early in a queue is worth something, and being late in one is worth nothing.

None of that is a scare tactic, which matters. Every line of it is either their own bill or a published date, and you can show your working. That is a different thing from manufactured urgency, and homeowners who have sat through a few solar pitches can tell those apart.

How do you answer it in the room?

Acknowledge, answer, then move to the number that still works.

"That is fair, and I honestly cannot tell you whether it comes back. What I can tell you is what waiting costs. Your bill is about two hundred a month, so a year of waiting is twenty-four hundred paid to the utility for the chance at something nobody can promise. And the thirty per cent that does still exist, on the lease side, runs out at the end of 2027."

Then stop talking about policy and go back to the bill comparison, which is the only argument that never depended on the tax code. How to rebuild your solar pitch without the credit covers the shape of it.

What if they still want to wait?

Let them, and keep them. A homeowner who says no this quarter is not the same as a homeowner who is not interested, and the single biggest waste in solar sales is treating the two identically. They go into the follow-up sequence, they hear from you when something genuinely changes, and they are already warm if policy moves.

Most companies stop after two attempts and lose these people entirely. See how many times should you follow up with a solar lead for why that is the wrong number, and why solar leads go cold for what actually happens in the gap.

A customer waiting for the credit is not a lost sale. They are a scheduled one, if anybody remembers to call them.

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Common questions

Is there any sign the residential credit is being reinstated?
Nothing anyone should sell against. It was repealed by statute, restoring it would take new legislation, and treating a possibility as a plan is how a homeowner ends up deferring for years.
Should we tell customers to wait?
No, and not because it costs you a sale. Waiting costs them money in bills paid at the full rate, and risks missing the Section 48E window that does still exist.
What if a competitor is promising it will come back?
Do not attack them, show the source. Reading the position out of the legislation is more persuasive than calling someone a liar, and it hands the homeowner something they can verify themselves.
How long should we keep following up with someone who is waiting?
Longer than feels natural. Solar decisions routinely take months, and a policy-driven deferral is explicitly a later yes rather than a no. A monthly check-in costs nothing and keeps you first in line.

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