Congress has passed a new bill that will significantly impact Ohio homeowners considering solar energy installations. The legislation, signed into law by President Trump on July 4, 2025, will end the 30% federal solar tax credit for residential systems after December 31, 2025. This change could lead to increased costs for those who delay their solar projects.
Currently, Ohio homeowners benefit from overlapping state and federal incentives that offer substantial savings on solar installations. However, these benefits are set to diminish as the federal tax credit is phased out at the end of this year. Homeowners must have their systems installed and operational by the deadline to qualify for the current credit.
The bill also maintains a 30% tax credit for solar leases and power purchase agreements (PPAs) through 2027. Battery storage systems under leases or standalone projects will continue to receive credits until 2032. Starting in 2028, new restrictions will apply to projects using components from foreign entities of concern.
Ohio offers several incentives that complement the federal tax credit, including local utility rebates and net metering policies. These programs help reduce installation costs but may be subject to future changes or budget cuts.
Industry experts urge homeowners to act quickly due to increasing demand and potential delays caused by weather or permitting issues. YellowLite, a prominent Ohio solar company, recommends scheduling installations before the year’s end to secure savings.
“The savings window is closing faster than most realize,” warns industry representatives, emphasizing the financial impact of waiting beyond 2025.
