One Big Beautiful Act Ends Federal Solar Tax Credits
Passed on the Fourth of July, the One Big Beautiful Act is a sweeping federal statute that covers a wide range of tax and spending policies.
Substantial new funding is earmarked for defence and border enforcement — $150 billion each.
One Big Beautiful Bill (OBBB) also rolls back many environmental protections and incentives for clean energy from former President Joe Biden’s Inflation Reduction Act of 2022.
For homeowners, that means the clock is ticking fast on federal solar and home battery tax credits.*
Understanding the Big Beautiful Bill
The One Big Beautiful Bill Act (P.L. 119-21) is the most significant legislation of President Donald J. Trump’s second term.
The Big Beautiful Bill — also known as the Trump Tax Bill — contains hundreds of provisions concerning corporate and personal income taxation and government spending on programs like Medicaid and SNAP (food stamps).
The Congressional Budget Office estimated that the OBB will increase the budget deficit by $3.5 trillion by 2034 and lead to a significant number of Americans losing health insurance coverage.
It also includes significant rollbacks of government incentives for renewable energy, both at the utility and consumer levels.
It promotes fossil fuel production and eliminates subsidies for electric vehicles (EVs) almost immediately.
It closes the window for clean energy credits six years earlier than earlier legislation for homeowners considering installing solar panels or home battery systems.
Impact of the Bill on Residential Clean Energy Credits
The Big Beautiful eliminates the Residential Clean Energy Credit as of December 31st, 2025.
Any clean energy property — such as solar panels and whole-home battery systems — installed on January 1st, 2026, or later is NOT eligible for the IRS (25D) 30% credit against personal income tax liability.
Even if you purchase an eligible system before the end of the year, technically, it must be installed and operational before January 1st to qualify for the Federal Solar Tax Credit.
One Big Beautiful (OBB) also eliminates the Energy Efficient Home Improvement Credit (25C) as of the end of 2025.
The OBB also slashes incentives for utility-scale renewable energy projects like wind turbines and solar farms.
What Homeowners Need to Know
If you’ve ever considered investing in a grid-connected solar panel or solar battery system, time is running out to save thousands of dollars by writing off 30% of the purchase and installation costs against personal income tax bills.
The Residential Clean Energy Credit (RCEC) is the most generous federal tax incentive ever offered for homeowners installing renewable energy systems at their primary or secondary residences in the United States.
The Investment Tax Credit for home photovoltaic systems has a long history,
However, until the Inflation Reduction Act (IRA) was passed in 2022, home battery systems weren’t eligible for a deduction.
The RCEC extended the 30% credit to cover home batteries with at least 3kWh of storage capacity, offering homeowners off-grid energy security during power outages and the opportunity to maximize solar return on investment.
For example, EcoFlow DELTA Pro 3 offers 4kWh of solar battery storage, expandable to 12 kWh per unit.
It provides 4kW of AC output (6kW X-Boost/8kW surge power) and solar charging of up to 2600W Dual-PV Charging (150V) per unit.
Need more power?
Chain up to 3 x EcoFlow DELTA Pro 3s together in parallel for a maximum of 12kW of AC Output (18kW X-Boost/24kW surge) and up to 36kWh of LFP battery storage.
Before 2023, only grid-connected home solar systems were eligible for a credit — now you can save on hybrid solar + battery storage systems too.
Unfortunately, grid-tied solar panel systems don’t work during blackouts.
Depending on numerous factors, such as:
Peak sunlight at your location
Number of solar panels
Inverter output capacity
Solar battery storage capacity
Many homeowners can go completely off-grid or reduce electricity consumption by up to 75% and have peace of mind during power outages from reliable home backup power.
The Residential Clean Energy Credit was initially supposed to be available until 2032…
Thanks to the One Big Beautiful Bill, time is running out at the end of 2025 instead.
Savings Potential with the 30% Clean Energy Tax Credit
One of the extraordinary elements of the Clean Energy Tax Credit is that there’s no dollar cap on how much you can claim against personal income tax liability.
Up until OBBB, there was also no limit on how many times you could claim the credit until 2032.
Now, it’s essentially a one-time non-refundable tax credit of 30% against the total purchase and installation costs of eligible Clean Energy Property, as defined by the IRS.
Because the credit is non-refundable, it can only be used to reduce your income tax liability.
However, if the amount of your credit exceeds your liability, you can carry the balance and apply it in subsequent years until you’ve received it in full.
The credit is available to US taxpayers — lawful residents and citizens — who install the system at their primary or secondary residence.
Renters and landlords are not eligible for the RCEC.
Below are estimates of potential savings from the Residential Clean Energy Credit based on the average cost of commonly installed photovoltaic + home battery systems**.
1kW Solar Panel System with 1kWh Battery
Solar Panel Cost: 1,000 watts x $3.00/watt = $3,000
Battery Cost: 1 kWh x $1,300/kWh = $1,300
Estimated Total Cost: $4,300
Estimated 30% Tax Credit Savings: $1,290
5kW Solar Panel System with 5kWh Battery
Solar Panel Cost: 5,000 watts x $3.00/watt = $15,000
Battery Cost: 5 kWh x $1,300/kWh = $6,500
Estimated Total Cost: $21,500
Estimated 30% Tax Credit Savings: $6,450
10kW Solar Panel System with 10kWh Battery
Solar Panel Cost: 10,000 watts x $3.00/watt = $30,000
Battery Cost: 10 kWh x $1,300/kWh = $13,000
Estimated Total Cost: $43,000
Estimated 30% Tax Credit Savings: $12,900
20kW Solar Panel System with 20kWh Battery
Solar Panel Cost: 20,000 watts x $3.00/watt = $60,000
Battery Cost: 20 kWh x $1,300/kWh = $26,000
Estimated Total Cost: $86,000
Estimated 30% Tax Credit Savings: $25,800
Use It or Lose It: A Critical Time for Homeowners
The Residential Clean Energy Credit made it more affordable than ever before for US homeowners to invest in solar power and home battery systems.
With electricity rates expected to keep rising by up to 22% per annum for the foreseeable future and power outages becoming more frequent and severe, there are also more reasons to reduce dependence on the aging utility grid.
Thankfully, it’s not too late to take advantage of the 30% tax credit on eligible clean energy property like solar panels and EcoFlow’s DELTA Pro Ultra whole home solar generator system.
EcoFlow is the industry leader in all-in-one off-grid power solutions for recreation and home battery backup systems.
Check out our selection today.
* Disclaimer: *Disclaimer: Before reading this guidance, please remember that tax matters can be highly individualized and complex. EcoFlow does not provide any assurances or guarantees concerning potential tax credits associated with our products. Any information in this guidance is solely for educational purposes and shall not be construed as legal advice. We recommend you rely on the expertise of tax professionals for accurate and personalized tax advice.
** The following average costs were used for these estimates:
Solar Panel Installation: $3.00 per watt
Home Battery Installation: $1,300 per kilowatt-hour (kWh)
Resources Cited
Arrington, Rep. 2025. “H.R.1 - 119th Congress (2025-2026): One Big Beautiful Bill Act.” Congress.gov. 2025. https://www.congress.gov/bill/119th-congress/house-bill/1.
“Estimated Budgetary Effects of Public Law 119-21, to Provide for Reconciliation pursuant to Title II of H. Con. Res. 14, Relative to CBO’s January 2025 Baseline.” 2025. Congressional Budget Office. July 21, 2025. https://www.cbo.gov/publication/61570.
Eckert, Nora, and Abhirup Roy. 2025. “Automakers Push EV Sales as $7,500 US Tax Credit Is Set to End.” Reuters. July 9, 2025. https://www.reuters.com/business/autos-transportation/automakers-push-ev-sales-7500-us-tax-credit-is-set-end-2025-07-09/.
“Residential Clean Energy Credit | Internal Revenue Service.” 2023. Irs.gov. 2023. https://www.irs.gov/credits-deductions/residential-clean-energy-credit.
“How to Claim a Residential Clean Energy Tax Credit | Internal Revenue Service.” 2024. Irs.gov. 2024. https://www.irs.gov/credits-deductions/how-to-claim-a-residential-clean-energy-tax-credit.
“What to Know about Expiring Energy Tax Credits.” 2025. Nahb.org. July 10, 2025. https://www.nahb.org/blog/2025/07/expiring-energy-tax-credits.
“Inflation Reduction Act of 2022 | Internal Revenue Service.” 2022. Irs.gov. 2022. https://www.irs.gov/inflation-reduction-act-of-2022.
Haworth, Dawn. 2024. “The Past, Present, and Future of Federal Tax Credits for Renewable Energy | NC Clean Energy Technology Center.” Ncsu.edu. November 19, 2024. https://nccleantech.ncsu.edu/2024/11/19/the-past-present-and-future-of-federal-tax-credits-for-renewable-energy/.
“Frequently Asked Questions about Energy Efficient Home Improvements and Residential Clean Energy Property Credits - Residential Clean Energy Property Credit - Qualifying Expenditures and Credit Amount | Internal Revenue Service.” 2022. Irs.gov. 2022. https://www.irs.gov/credits-deductions/frequently-asked-questions-about-energy-efficient-home-improvements-and-residential-clean-energy-property-credits-residential-clean-energy-property-credit-qualifying-expenditures-and-credit-amount.