WATERLOO, Iowa (KCRG) – Solar energy is about to become much more expensive for homeowners across the country.
At the end of the year, a 30% residential solar tax credit will expire, effectively making rooftop solar panels 30% more expensive.
One solar installation company in Waterloo says it’s seen a surge in people looking to get their installations done before the tax credit is gone.
“My gut says that residential solar sales are going to slow down,” said Chris Mudd, owner of Midwest Solar Installers.
Mudd says he’s seen many interested customers looking to get their installations done quickly before the 30% residential solar tax credit expires at the end of the year.
“I think for a lot of people I think it’s an important part. I think it really has made solar more affordable,” Mudd said.
Mudd said the typical solar installation could be between $25,000 AND $30,000, so losing out on the 30% tax credits could mean installation is $9,000 more.
While Mudd expects the higher costs to translate to lower sales after the year’s end, he says there may be a silver lining to the credit going away.
“Manufacturers know there’s a tax credit and it’s a way for them to raise the price of their equipment,” Mudd said. “I think they’ve artificially inflated the cost of their product because they know they can.”
While he said the tax credits have led to more expensive solar installations, Mudd’s not confident prices will drop after the credit is gone, either.
“So I would imagine that at some point the price of solar would come down, but again, if the price of energy continues to rise, the likelihood of equipment costs coming down is just a dream,” Mudd said.
Mudd said higher energy demand, especially with data centers set to come to eastern Iowa, is likely to keep solar more expensive.
President Trump has been a critic of solar and wind energy incentives. The residential solar tax incentives were cut under the ‘one big beautiful bill’.
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