Tonight, Americans racing to take advantage of clean energy tax credits face a shrinking window: incentives for home solar and other technologies expire at the end of the year. CBS reporter Nikole Killion says some homeowners are hurrying to finish upgrades before the December 31 deadline.
One homeowner, Jeff, made arranging a solar installation a top priority after learning the federal rebate would end. With the residential tax credit, he expects to save about $140 a month. The credit currently covers roughly 30% of the cost of installing solar panels, but it will disappear after December 31, along with other Biden-era clean energy subsidies that were eliminated by President Trump in the bill signed into law in July.
Solar companies have felt the rush. Mike Kirby, who runs a solar installation business outside Baltimore, says calls have surged. “Your phones have been ringing off the hook,” Killion noted, and Kirby replied, “It’s been crazy. It’s unlike anything I’ve seen in 16 years.” He said the approaching deadline pushed this year’s strong demand into overdrive.
Kirby hopes business won’t collapse once the credits are gone. He pointed out that the industry has weathered similar cycles before: expirations and policy changes have produced short-term slowdowns, followed by resumed growth. Still, he warned that removing the incentive will likely change many consumers’ decisions: “Without the incentive, I think it’s going to have a dramatic impact on the consumer’s choice.”
The change is also affecting electric vehicle sales. Rob Smith, who oversees several car dealerships, is reassessing inventory after several major automakers reported declines in EV sales following the expiration this fall of a $7,500 tax break for buyers. As buyers compare vehicles without that financial advantage, choices and demand shift.
For homeowners like Jeff, the calculus is straightforward: incentives made new technologies such as solar panels and electric vehicles more affordable. “It’s unfortunate,” he said, noting that removing those incentives could put some people off adopting cleaner options.
The pending expiration is raising questions for an industry built on sustainability, as companies and consumers adjust to a future with fewer federal subsidies. Nikole Killion, CBS News, Washington.