30% Solar Tax Credit is Ending—5 Things NC Needs to Know

In This Article

We’ll break down what the end of the federal 30% solar tax credit in 2025 means for North Carolina homeowners, what’s still available, why timing matters, and how to help others benefit before it’s gone.

This was originally published in June, and has since been updated to reflect our 2025 install calendar.

1. The 30% Solar Credit Is Ending

  • On July 1, the Senate passed a major budget bill – known informally as the ‘One Big Beautiful Bill’ (OBBB) — that, among other changes, begins phasing out the 30% federal solar tax credit (officially known as the Section 25D Residential Clean Energy Credit) at the end of 2025. For homeowners, that means the window to claim this incentive is closing soon.
  • This credit is a is a dollar-for-dollar credit (this is different from a deduction, like Goodwill) on your federal tax liability. Essentially, it allows you to deduct 30% of your total system cost from your federal taxes.
  • The Tax Credit will vanish at the end of this year, 2025. If you’ve already gone solar, this news may not affect you directly. But if you’ve been thinking about it, we want to help you understand what this shift means and what your options are moving forward.

Over the past 25 years, we’ve seen federal and state incentives rise, fall, disappear, and return. Though these incentives are never guaranteed, one thing has remained true: solar is still one of the wisest decisions a North Carolina homeowner can make. 

Why this change matters, for all of us

The 30% solar tax credit has been a key part of making solar more affordable for homeowners. It’s also helped create thousands of jobs and given small businesses like ours the stability to grow and plan ahead. But this credit didn’t just help families and homeowners — it sent a strong signal to manufacturers, investors, and the global energy market that clean energy was part of America’s plan. Its sudden elimination does the opposite. It disrupts supply chains, slows domestic investment, and creates uncertainty across the entire industry — from the folks who install panels to the companies making them.

We know these decisions are part of a bigger policy picture. And we also know energy conversations can get political fast. Our focus isn’t on politics — it’s on how we show up for our customers, our team, and our state.

That means helping North Carolinians make informed, empowered decisions in the face of big shifts like this one.

(NEW) 2. Our 2025 Calendar is Full

Our 2025 calendar is full! This shows just how many North Carolinians are making the move to clean, resilient energy. We’re already looking ahead to 2026. Keep reading to learn about other incentives available! 

SEM's truly exceptional solar install team at the North Carolina Museum of Art this past Spring. If you haven't already, we hope you get to meet some of them!

3. There Are Still Strong Incentives in NC for 2026

The 30% federal tax credit may be ending, but North Carolina homeowners still have access to powerful local programs that make solar and battery storage more affordable… especially if you act soon.

Duke Energy’s PowerPair Incentive Program

PowerPair offers up to $9,000 in additional savings when you install solar with battery storage. This is one of the strongest battery pairing incentives we’ve seen in the state — and it’s nearing capacity.

Something to Smile About

The loss of the federal tax credit is a setback, no question. But it’s not the end of the road for solar in North Carolina. Our state has long been a national leader in clean energy – and that momentum hasn’t disappeared. North Carolina remains one of the top solar states in the country, ranking fourth in solar generation. We’re proud to be part of that momentum – and to have been for nearly 25 years now.

4. Referrals Help Others and Keep the Movement Growing

If you’ve already gone solar with us, first — thank you!! We wouldn’t be here without you.

Second — your voice matters. Most of our new customers come to us through someone they trust. A neighbor. A friend. A cousin who couldn’t stop talking about their lower energy bills at Thanksgiving. 

We’ve built this company on community, one rooftop at a time. If you know someone who’s been curious about solar, this is a great time to send them our way. 🙂 

5. We’ve Weathered Storms Before. We’ll Be Here After This, Too.

We’re disappointed by this decision. It affects real people, our crew members, project managers, and team members who’ve built careers around clean energy. It creates real challenges for the hardworking people who install, design, and support solar systems across the country. It also makes long-term planning harder for small businesses like ours, who have built operations around the consistency of this tax credit.

The team at southern energy management

After 25 years in business, what’s kept us going — through every policy change, market shift, and moment of uncertainty — is you! Our customers. Our team. Our partners. And our belief that clean energy should be accessible, reliable, and rooted in community.

In a volatile industry, experience matters. Working with a company that’s been around for 25 years means you can count on us – today, tomorrow, and ten years from now. 

While some companies are built for short-term peaks, our distributed business model is built to last. We’ve intentionally structured our teams, services, and support to weather policy shifts and market changes. We’ll be here to service your system, answer your questions, and help however we can.

Your system is an investment – and the right partner makes all the difference! 

When it comes to building a clean energy future, we’re all in this together

Whether you installed solar with us or not, our in-house maintenance and tech support team is here to help. From troubleshooting alerts to inspecting aging systems, we’re committed to keeping solar working for everyone in our community — not just our customers.

Policy Advocacy & Community Action

Once our team learned about the proposed elimination of the tax credit, it was all hands on deck. We mobilized quickly — sending emails, making calls, and showing up to voice why solar is important for North Carolina. Our CEO & Owner, Will Etheridge, and Lead Solar Designer & Owner, Graham Alexander, made trips to D.C. to advocate for solar at the federal level, while also meeting with local officials to highlight the real-world impact of this change for North Carolina.

Graham Alexander, Co-Owner & Solar Designer advocating for solar in D.C. along our neighbors Sugar Hollow Solar (Asheville)

Senator Thom Tillis stood with us, along with many others who recognized the value solar brings to North Carolina. Together, our team sent over 365 emails to state and federal lawmakers. Dozens of you took time to reach out, call your Senators, or urge friends to do the same.

We didn’t get the outcome we hoped for. But we showed up, we were heard, and we made a difference.

Will D. Etheridge, Co-Owner and CEO at Southern Energy Management speaking out to save 25D.

💚 Check out some of the coverage and interviews we’ve been featured in:

Thinking About Solar?

Not sure what this change means for you? Wondering whether it’s time to make the leap? Wherever you’re at in your solar journey, we’d love to talk it through with you. No pressure — just honest guidance from a team that’s been doing this work for more than two decades.

Let’s make the most of the time we have, and keep NC shining. ☀️

Meet the Author

Lindsay Brecheisen

Lindsay is the conductor of content at Southern Energy Management, where she blends her background in Environmental Science & Energy Assessment with a passion for storytelling to make clean energy approachable and inspiring. She brings clarity, creativity, and a love for the planet to everything she writes. Off the clock, she’s probably watercolor painting, cooking by instinct, watching Joaquin Phoenix films, or surfing—earth or sea, depending on the season—with her cat, Piper, never far away.

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