As we approach the end of 2025, time is running out to take advantage of valuable energy efficiency and clean energy tax credits expanded under the Inflation Reduction Act of 2022 that were repealed by President Donald Trump and Congress this year. These incentives make clean energy investments and energy-saving upgrades more affordable for homeowners, renters and businesses to help better manage energy costs. But with many of them set to phase out or change significantly after 2025, now is the time to act.

Here’s how you can make the most of energy tax opportunities before they’re gone:

1. Install Solar Panels on Your Home

The Residential Clean Energy Credit offers a 30% federal tax credit for the cost of installing solar panels, solar water heaters and other eligible systems. This credit can significantly lower the upfront cost of switching to solar power.

2. Upgrade to Energy-Efficient HVAC and AppliancesThe Energy Efficient Home Improvement Credit allows you to claim up to $3,200 annually for energy-saving upgrades. This includes:

• Up to $2,000 for high-efficiency heat pumps and water heaters
• Up to $1,200 for energy-efficient home improvements including insulation
  • Up to $600 for energy-efficient windows
  • Up to $150 for a home energy audit

✅ Act Now: Systems and improvements completed by Dec. 31, 2025, are eligible for the credits. After 2025, the credits are scheduled to expire unless Congress extends them.

3. Take Advantage of State and Local Incentives

Federal tax credits often stack with state or utility rebates, which can lower your costs even further. Many states offer rebates for:

• Solar panel installations
• Heat pumps
• Weatherization
• EV charging stations

Virginia just launched Virginia Energy Connect, a new online platform that consolidates federal, state and local energy incentive programs into a single hub where users can quickly identify relevant opportunities and understand application requirements.

North Carolina residents can utilize the Energy Saver NC website that helps income-eligible homeowners and renters across the state cover the cost of energy efficiency and electrification upgrades. The program is currently only available for Western North Carolina counties, but will soon be expanded to the rest of the state.

Customers of the Local Power Companies in the Tennessee Valley Authority region can use the Energy Right hub to manage energy costs by taking advantage of the incentives, rebates and tools it offers. 

Residents of other states can visit the Database of State Incentives for Renewables & Efficiency to search for incentives in your area.

4. Small Businesses and Landlords: Don’t Miss Out

If you own rental property, farm or a small business, you may qualify for commercial clean energy tax credits, which have a different timeline for expiration due to the One Big Beautiful Bill Act rolling back a number of clean energy tax incentives.

• Commercial tax credits under Section 48E: for wind and solar facilities that begin construction before July 4, 2026 or are placed in service by December 31, 2027. If construction begins before July 4, 2026, the project has 4 years to complete construction.
• The Clean Electricity Production Tax Credit under Section 45Y: for wind and solar projects, construction must begin by July 4, 2026, or be placed in service by  December 31, 2027. If construction begins before July 4, 2026, the project has 4 years to complete construction.
• Energy-efficient commercial building deductions under Section 179D: this credit was modified by the budget reconciliation bill passed in July 2025, creating a termination date for projects that begin construction after June 30, 2026

✅ Work with a Tax Professional: These credits can be complex but highly valuable. A tax advisor can help ensure you qualify and file correctly.

Don’t leave money on the table. Whether it’s installing solar panels or upgrading your home’s energy efficiency, now is the time to invest in clean energy and save money on rising electric bills by taking advantage of these clean energy tax credits. Act now, save big and power a cleaner future!