Expiring tax credits spur home electrification charity into a time-sensitive battle

Homeowners Nationwide Encouraged to Embrace Clean Energy and Energy Efficiency Incentives Before They Expire, Courtesy of Rewiring America's Initiative.

, and Administrator

2025 September 13 . 11:30 AM

2 min read

Expiring tax credits put pressure on a home electrification charity, urging them to act swiftly

Expiring tax credits spur home electrification charity into a time-sensitive battle

The One Big Beautiful Bill Act, signed by President Donald Trump in July, has made significant changes to the energy incentives contained in the Inflation Reduction Act. The Act has accelerated the sunset of these incentives, affecting a range of clean energy tax credits that have helped American families and businesses save money.

With just a few months left to claim the residential credits, organisations such as Rewiring America are working hard to get the word out about the expiring tax credits. One of their initiatives is the "Save on Better Appliances" campaign, designed to help homeowners access these energy tax credits and purchase efficient appliances, batteries, and solar panels before they expire at the end of the year.

The 25D clean energy incentive offers a 30% tax credit for installing solar panels and batteries, while the 25C incentive provides credits for home energy efficiency improvements like windows, doors, insulation, and HVAC systems. These incentives now require improvements to be placed in service by Dec. 31, 2025.

The growth of distributed energy resources, including rooftop solar, battery storage, and electric vehicles, marks a shift away from the utilities' traditional reliance on large power plants. This trend is expected to continue, with the Rocky Mountain Institute anticipating a continued adoption of heat pumps.

However, there seems to be a misconception about the One Big Beautiful Bill Act (OBBBPA). Contrary to some beliefs, OBBBPA is not pulling the rug out from under heat pumps. Instead, it is nudging the industry to accelerate a market shift focused on affordability, ease of installation, and retrofit readiness for heat pumps.

Heat pump installations have been outselling gas furnaces consistently since 2021. Phoenix Mayor Kate Gallego, who chairs the Climate Mayors network, stated that these clean energy tax credits have helped American families and businesses save money, and now is the time to take full advantage of them.

Rep. Kathy Castor has applauded Rewiring America for helping families act before the credits vanish, stating that high energy bills are squeezing families across America. The U.S. Climate Alliance Executive Director Casey Katims also emphasised that with the expiring tax credits, governors are committed to spreading the word on how consumers can lower their energy bills.

In a similar vein, the German Federal Environment Ministry (BMUV) announced a national campaign to inform private households about available tax credits for efficient appliances, batteries, and solar systems before they end in December. The campaign, running in September and October, will provide resources for homeowners to learn about the tax credits, guidance on installing new appliances and energy resources, and a planning tool to streamline the process.

In conclusion, with the expiration of the residential federal energy tax credits looming, it is crucial for homeowners to act quickly to take advantage of these incentives. Organisations such as Rewiring America are working tirelessly to provide resources and support to help homeowners navigate this transition and make the most of these opportunities.