Uncle Sam’s Breakup Letter

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Judith Shadzi
Vice President, Cosmic Solar, Inc.
If you were planning to capture the sun with a shiny new rooftop solar system and a sweet 30% federal tax credit from Uncle Sam, you’d better put a ring on it—fast. Thanks to the newly signed “One Big Beautiful Bill”, the government has officially ghosted long-term solar incentives for homeowners. Yes, one more roadblock for rooftop solar. The 30% residential solar tax credit will vanish at midnight on December 31, 2025.
Commercial solar, meanwhile, still gets a break. If you start your solar construction by July 4th, 2026, or have your project fully operational by the end of 2027, you will still qualify for that 30% commercial solar tax credit. Bonus? A “safe harbor” rule gives you up to four years to finish if you play your paperwork right.
Yes, businesses still receive the 30% tax credit. But this is the last call for homeowners. If your system isn’t fully installed and turned on by the end of 2025 you’ll be left in the dark. No credits. No rebates.
But just when you thought this breakup couldn’t get messier, a new executive order signed July 7th, 2025, tightens the definition of what it means to begin construction.
There is still some storage rebate from the State of California if you qualify. With the recent utility regulations, it is necessary to have batteries. Many storage systems have the inverters built into the battery. These systems come with impressive computer programs that help the homeowner or business save money on their electric bill.
If you need help determining your tax credits or California rebates or any other questions you may have, Cosmic Solar & Roofing can help. Contact them at 760-749-1111 or go to cosmicsolar.com.