️25D Federal Tax Credit Expiration – What Solar Companies Need to Know
The Residential Federal Solar Tax Credit (25D) is set to expire on October 1, 2025. This change will have a direct impact on solar financing and the way you present proposals to customers. ☀️
🔑 Key Changes
Loan Product Updates
Starting October 1, 2025, all integrated loan partners will roll out updated products to reflect the expiration of the federal tax credit.
- Goodleap – October 1
- Sungage – October 1
- Dividend – October 1
- Sunlight – October 15
Federal Tax Credit Removed
- October 1: FTC will be removed from all integrated lender products.
- November: FTC will be removed from proposals system-wide.
Non-Integrated Lenders
If you’re using a non-integrated lender, the federal tax credit will default OFF in proposals. You will need to manually select it if your lender chooses to extend any promotional incentives.
📊 What This Means for You
- Proposal Accuracy: Proposals created after October 1 will no longer include the federal tax credit. Teams must be sure customers are not shown savings that no longer apply.
- Higher Monthly Payments: Loan products will adjust (principal, rates, or terms) to account for the expired credit, which may increase payment amounts.
- Sales Strategy Shift: Without the FTC, sales conversations should highlight long-term energy savings, utility cost protection, and any available state or local incentives.
- Transition Planning: Ensure your teams are trained to present the new loan structures clearly and confidently.
⚡ Bottom Line
The expiration of 25D is one of the biggest shifts in solar financing in years. Staying ahead means understanding the new loan products, adjusting your proposals, and training your teams to sell solar without relying on the federal tax credit.