Arizona homeowners have long benefited from the federal solar tax credit, which covers 30 percent of the cost of solar panels and battery systems. This incentive has saved families thousands of dollars, lowered utility bills and boosted home values. However, the Residential Clean Energy Credit expires on December 31, 2025, meaning systems must be fully installed by then to qualify. On a typical $30,000 system, the credit amounts to $9,000 in direct IRS savings.
The urgency is especially high as installers anticipate heavy demand and burdened supply chains as the deadline nears. Waiting until late in the year could leave homeowners without the credit entirely. Solar and battery systems not only provide monthly savings but also add long-term property value, with studies showing homes with solar sell for more. For Arizona, where high summer electricity bills are common and sunshine is abundant, the expiration of the credit marks a critical moment for families considering clean energy.
