Solar Tax Credits & Incentives
ATTENTION: 2025 is officially your last chance to secure this 30% federal tax credit for residential solar systems.
Receive 30% of your total solar system cost back in the form of a tax credit if construction begins before 2025. Don't Wait.
Learn more below:
Peninsula Solar, based out of Marquette MI, is the only fully licensed solar installation company in the Upper Peninsula. We have been installing residential solar and commercial-scale solar systems since 2011, and our design team will be happy to speak with you in order to develop a free proposal while ensuring you take advantage of any opportunity for free tax credit.
Give us a call in Marquette: 906-235-0340 or in Traverse City: (231) 590-7305! We'll gladly answer all of your questions and help you through the process.
What is the Tax Credit Offer?
The Inflation Reduction Act of 2022 is an unprecedented legislation that affords homeowners, business owners, and nonprofits staggering opportunities to invest in renewable solar energy.
Amidst the commotion, some people missed the significance of this announcement. Now, with passing of new Big Beautiful Bill legislation in 2025, we're seeing a different type of commotion. The future for incentives for renewables, like this, is uncertain. You can still get 30% of your investment back as long as you start construction before the end of 2025, and we are ready to help you today!
A modern solar energy system is by far the most cost effective way to provide power to a building, especially one that consumes a fair amount of energy. Learn more about how the Big Beautiful Bill will effect incentives for residential solar systems and for commercial solar systems below:
Residential Solar Incentives
The Big Beautiful Bill (BBB) passed in early July 2025 made significant changes to the residential solar Investment Tax Credit (ITC):
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The 30% credit under Section 25D is no longer available unless the system is placed in service or cost of installation is paid for by December 31, 2025 (even if the system is installed after).
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After 2025, projects are ineligible unless homeowners make expenditures (i.e., pay) in 2025 — even if the system is placed in service later.
The BBB allows tax credits for leased or PPA residential rooftop systems under Section 48E, claimed by investors or lessors, if these 3 conditions are met:
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Start of construction date
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Date system is placed in service
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Portion of materials not sourced from prohibited foreign entities
Commercial Solar Incentives
The Section 48E Commercial Solar Tax Credit remains strong under the BBB:
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30% credit available if construction starts by July 4, 2026, or if the system is placed in service by December 31, 2027.
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30% Energy Storage credit continues through 2032.
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All ITC adders (low-income, energy communities, etc.) remain in effect.
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Tax credit transferability and Direct Pay for tax-exempt organizations continue unchanged.
Note: Projects that begin construction by July 4, 2026, typically have a 4-year safe harbor period to be completed.
Who Qualifies for this Tax Credit?
Virtually any property owner in the United States qualifies for a tax credit granting them 30% off of a solar system in 2025.
For homeowners and business owners, this credit comes in an offset of their income tax liability. This means a reduction in the amount of income tax that an individual or a business owes to the government.
