If passed, the 30% solar tax credit will go away in 2026.
This tax credit has been lied about to manipulate solar prospects to be interested in and buy solar so much, for so long, that it has helped give the entire industry a bad name. There are entire Facebook groups that call solar a scam. The tax credit is by no means the only solar lie being told, but it’s a big one. We view it as part of the massive market correction happening in the solar industry, and we’re here for it. If anything, this will be good for us.
First of all, we sell maybe ten to fifteen new solar electric systems a year, which is dismal compared to some of these “solar giants” that are going out of business or getting shut down. The majority of our revenue comes from servicing existing solar customers, fixing botched installs by other contractors, and other energy-efficiency products and services we offer. The ten to fifteen new solar electric systems we sell a year buy from us with little attention paid to or consideration for the tax credit.
As these giant solar contractors topple around us from lawsuits, bankruptcy, and even criminal charges in some cases, we scramble to get their phone numbers directed to us whenever it’s possible and legal to do so. Those orphaned solar customers need a legitimate solar contractor to unravel the mess they got in by trusting the wrong solar contractor, and we are pretty good at that. We look forward to the influx of business.
The way we see it, solar already pays for itself and in fact pays a return on investment. Everyone who can go solar should, based just on the financial math of it. There are other reasons, and we feel we’ve discussed them enough and won’t again here, but at the end of the day; solar freezes your electric cost at today’s rates and protects you from the compounding increases the power companies will impose. All the other cool stuff about it, including the credit, are bonuses, bells and whistles, and pretty bows on the top of solar.
There are some legitimate solar contractors who will be affected. Commercial solar contractors are going to take a hit. The tax credit for businesses that go solar is a huge consideration when they are looking at bids. Most businesses can take full advantage of the tax credit, and some will buy just because they need the tax credit. Very fine, ethical and honest, commercial solar contractors are scrambling for options as the table of their business gets flipped.
When less than 80% of residential solar customers can take advantage of the full 30% solar credit, promoting it heavily to everyone, not knowing, or even being qualified to know, their tax situation, is unethical. Any residential solar sales organization or contractor that is negatively affected by the credit going away was leaning too heavily on it as a selling point. They need to go away with it. Many are.
So, we acquire the phone numbers of failed solar contractors. We then direct it to our main line. We do this to pick up the future service revenue on these systems. Some are immediate service issues because their system was not properly or completely installed, and the customers have no recourse – the company they bought from is no more. That comes with dealing with some grumpy solar customers until they realize we aren’t the company that lied to them.
So, the new business helps keep the lights on around here, but there are other reasons to take over those numbers and deal with the initially grumpy calls. One of those reasons is that not having a solar contractor when you need one is a bad spot to be in. Electricians don’t understand solar well enough to work on it. If your original contractor is no more, it is going to be an issue. We’d like to, whenever possible, help heal the reputation of the industry.
Some of these customers are legitimately enraged. One told us the following. Not only were they promised they would get a rebate (Rebate, not credit.) from the IRS for 30% of the contract price. They were taken to a website that showed they would receive additional rebates from their power company, their city, the county, and the state. They thought 100% of their contract price was covered by these rebates. The fact that is not true is uncomfortable news to deliver but it is on us to deliver it when they call to complain after they speak to their tax advisor. We are recommending they contact the DBPR and Attorney General.
So, we told you all that to tell you this; the solar portion of the Big Beautiful Bill is a good thing. Tax credit-shmax-shmedit we say. It’s a nice little bonus for those 20% that qualify, but solar pays for itself already. 30% for the 20% is spit in the ocean. Also, the purge of dishonest solar salespeople and incompetent contractors is not complete. There are still lies being told. Please, exercise a little caveat emptor, people.
That being said, if you are one of the 20% who can take advantage of the tax credit – the time is now. Get a quote from us then get with your tax professional and see what it will do for your tax burden next year. It could be your last chance to save thousands in tax dollars in addition to the tens of thousands you will save merely by going solar.
