Ending The Solar Tax Credit May Have Hidden Benefits - CleanTechnica

The article discusses the impending expiration of the 30 percent federal tax credit for residential solar installations at the end of 2025 and explores the counterintuitive argument that ending this subsidy may actually benefit the solar industry. While the tax credit has supported growth, some industry insiders argue that rooftop solar is now a mature technology that should no longer rely on subsidies. They point out that the U.S. solar market suffers from disproportionately high "soft costs"—including installation, permitting, sales, marketing, and financing—that make residential solar two to three times more expensive than in countries like Australia. These inflated costs are partly perpetuated by subsidies, which obscure inefficiencies and enable excessive dealer fees and sales commissions. Experts cited in the article suggest that eliminating the tax credit could pressure the industry to streamline operations, reduce costs, and eliminate bad practices, ultimately leading to a more efficient and affordable solar market. However, the transition may cause short-term challenges such as slower adoption and financial strain on some companies. A