Why Now Really Is the Time to Go Solar: What’s at Stake and How You Can Help
There’s a saying in the solar industry: now is always the best time to go solar. Why? Because energy prices keep rising and incentives are really good right now, the quicker you can start saving on your power bill, the better off you'll be. We also truly believe in the mission behind what we do—transitioning our communities away from an aging, resource-limited grid infrastructure to one that works in harmony with the land, maximizing clean, renewable energy for a sustainable future.
In the wake of Hurricane Helene, that mission has never felt more urgent. As homes and businesses across Western North Carolina were left without power, we witnessed firsthand how distributed energy systems—especially solar with battery storage—can serve as lifelines. Whether it was keeping life-saving medications cold, powering phones and medical devices, or supporting charging hubs for entire neighborhoods, solar energy helped communities stay connected and resilient when the grid failed.
Moments like these highlight just how critical continued investment in clean energy is—not just for our climate, but for our daily lives and safety. Yet even as demand for solar grows, the policies that support it continue to shift. We’ve seen this before—like the 2023 revisions to North Carolina’s net metering rules—and each time we’ve adapted to keep solar accessible. Still, the proposed changes in the current federal tax bill represent a particularly disappointing setback, threatening to undercut the momentum our industry has built and a particularly valuable incentive that has made solar accessible to a large number of people.
What’s Happening with the Federal Tax Credit?
One of the most powerful tools behind the growth of clean energy in the U.S. is the Investment Tax Credit (ITC)—commonly known as the federal solar tax credit. This credit allows homeowners, businesses, and nonprofits to deduct 30% of the total cost of their solar energy system from their federal taxes, significantly reducing the upfront investment required to go solar.
Thanks to the Inflation Reduction Act (IRA) passed in 2022, the ITC was expanded and extended, providing a clear, decade-long runway for families and organizations to invest in clean energy with confidence. The IRA laid out a planned, gradual phase-down of the credit beginning in 2032.
But that certainty is now at risk.
Congress is currently debating a new tax bill that could drastically reduce, or even eliminate, these solar incentives far earlier than planned.
Here’s what’s at stake:
The Residential Solar Tax Credit, which covers 30% of solar project costs, could expire as soon as the end of 2025, seven years earlier than originally scheduled.
A last-minute amendment in the House version of the bill would also eliminate Commercial and Nonprofit solar tax credits just 60 days after the bill becomes law, threatening projects already in motion.
A rollback of federal solar tax incentives could have a deep ripple effect across the U.S. clean energy economy. According to recent industry analysis by the Solar Energy Industries Association, the potential consequences include:
Hundreds of solar and battery manufacturing facilities are at risk of shutting down or halting production
Over 300,000 jobs lost across the solar and clean energy sector
Billions in local investments could be wiped out, hitting rural and underserved communities hardest
Significant reductions in renewable energy generation, just when we need more clean power, not less
This means many solar projects that were counting on years of financial incentives under the Inflation Reduction Act could suddenly lose the support that makes their projects viable.
To put this in perspective, let’s look at Bernie, a Sugar Hollow Solar customer. In 2022, Bernie installed a solar system paired with battery backup that included 13.44 kW of solar panels and two Tesla Powerwalls. Thanks in part to federal tax credits totaling over $17,000 in incentives, Bernie was able to make this investment, and now projects over $60,000 in savings on utility bills over the next 25 years.
But Bernie’s story isn’t just about dollars saved. It’s about resilience and peace of mind. When Hurricane Helene knocked out power across Western North Carolina in September 2023, Bernie’s solar + battery system became a lifeline.
“At the beginning of my solar journey, my main purpose was so that I would not have to rely on the power company. Doing my little part to help Mother Earth was not bad either. Having solar with battery backup is like having a nice comfy quilt over my home, just in case we lost power, I would be set...Never in a thousand years did I think I would have to rely on my solar panels and battery backup to actually keep me alive. Not only did my system keep my refrigerator, freezer, and water pump going, but I also shared my power with my neighbors on either side of my house. After all is said and done, Sugar Hollow Solar’s installation not only kept me alive, but a family of four, and a husband and wife.”
Bernie’s experience highlights the vital role these tax incentives play—not only helping people save money, but also building energy independence and community resilience. Cutting these credits risks more families and nonprofits losing access to clean, reliable power when they need it most.
Bernie posing with his Tesla Batteries during a team training exercise at Sugar Hollow Solar
What We're Doing About It
As solar professionals and community members, we know that policy change doesn’t happen without people speaking up. Since April, we’ve been closely tracking developments on the federal tax bill, engaging with legislators, and urging our community to send letters and raise their voices. In early June, we planned to participate in a national advocacy effort led by Rural Resource and Invest in Our Future to send staff to Washington, D.C., to share firsthand stories of solar projects from Western North Carolina; however, our Senator canceled meetings and is not currently accepting visits of this nature. Our founder, Doug Ager, is also hoping to visit the Hill alongside Amicus Solar Cooperative to advocate for protecting clean energy incentives and ensuring lawmakers fully grasp the local impact of these proposed changes.
All of this work and conversations have underscored just how vital federal tax credits are to the families, nonprofits, and small businesses we serve, and how much is at risk if they disappear.
That’s why we’re taking action on multiple fronts:
Educating all active and prospective customers about how to secure their tax credit eligibility before any potential policy shifts (hint- going solar before mid-July to avoid the uncertainty)
Coordinating community calls and letters to key decision-makers
Preparing to fast-track qualifying installs for those who sign by mid-July, ensuring projects are completed in time to meet current incentive deadlines
This fight is about more than numbers; it’s about people, resilience, and building a sustainable future for North Carolina and beyond.
How You Can Help: Go Solar, Send a Letter, Make a Call, Tell Your Friends
If you believe in the power of clean energy and the urgency of long-term climate solutions, now is the time to speak up. Many of our incredible partners have made it easy to take action, for example, just fill out [this form] and automatically send a message to your representatives and senators.
If you or someone you know has been thinking about going solar, now really is the time to act call us at 828.776.9161, or hit reply to this newsletter. We can still secure the current 30% federal tax credit for any residential project that moves forward in the next few weeks, and we’re ready to fast-track installations to meet potential deadlines.
And if you refer a friend who goes solar with us, you’ll get up to $1,000 as a thank-you, a meaningful way to support your community and the planet.
This moment is critical for clean energy in North Carolina and beyond. Together, with your support, we can keep building a future that’s brighter, stronger, and more resilient.
If you need help sending your letter or want to explore solar options, just reach out here or reply to this post—we’re always glad to connect and support you.
Let’s keep the sun shining bright for everyone in our community.
