BURLINGTON, Vt. (WCAX) – Installing solar at home is about to cost you more.

The new year marks the end of a popular federal solar incentive.

The Residential Clean Energy Credit knocks 30% off of home solar costs, but President Trump’s big beautiful bill strikes down those federal credits starting on January 1.

It’ll force many solar companies and customers to adapt.

Williston solar company “Building Energy” typically takes on new solar projects through December.

This year, Vice President Nik Ponzio says they were fully booked for the year by August.

“Definitely had a major uptick over the summer when the rules were announced that those tax credits were ending,” said Ponzio.

Ponzio says his crews and many other solar installers around the state raced to finish their jobs while the federal credits still apply.

“It’s kind of a mad dash for the end of the season now,” said Ponzio.

As Vermont pushes for more renewable energy, the credit cutback presents an obstacle.

We asked Vermont Public Service Department’s TJ Poor what it means for state requirements.

Reporter Sophia Thomas: “How do we meet the requirements laid out in the renewable energy standard when incentives like this one are continuously being stripped away from Vermonters?”

Poor: “Right. Well, net metering from residences is a really small part of the overall portfolio. And so really what will largely happen is those kilowatt hours that would go to meet our requirements from residential customers would be then instead met by larger projects in the state.”

He says he’s already seeing an uptick in applications for commercial solar projects.

Commercial developers are up against their own deadline, with federal tax credits for commercial solar ending by the end of 2027.

“The industry as a whole, we’re seeing kind of a race to get as much in as possible to capture that ITC. The more projects that have the federal investment tax credit, that is less than the Vermont rate payers have to pay,” said Poor.

Back at building energy, Ponzio is bracing to lose some solar customers.

He’s partnering with third-party Palmetto LightReach to offer panel leasing in the hopes of keeping solar accessible.

He‘s optimistic that their other services, like heat pump installation and building weatherization, will bolster business.

“There’s some, you know, nervousness about heading into next year. We have some work lined up for the beginning of the year, but it’s definitely going to be a different market,” said Ponzio.

To benefit from the Residential Clean Energy Credit, your system must be installed, operating, and capable of generating electricity by December 30.

See here if you want to invest in home solar.

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