Investing in clean energy doesn’t have to strain your budget. At Energy Electives we’ll help you understand the incentives still available and how different financing structures can affect your return on investment—without endorsing any specific loan or lease product.
Federal incentives
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Residential Clean Energy Credit (25D) – expiring: Under the One Big Beautiful Bill Act signed on July 4, 2025, the 30 % Residential Clean Energy Credit (also called the solar Investment Tax Credit or ITC) will be repealed for residential projects placed in service after December 31, 2025. Homeowners who complete installation before that date can still claim 30 % of their project cost on their 2025 federal tax return. After 2025, no federal tax credit will be available for home solar installations.
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Other federal credits: Commercial and utility‑scale solar projects may still qualify for modified investment or production tax credits if they enter service before the end of 2027.
Tennessee incentives
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Green Energy Property Tax Assessment – Tennessee limits the taxable value of your solar system to 12.5 % of its installed cost
. This cap typically saves around $225 per year in property taxes, or more than $4,500 over 20 yearsecowatch.com. The reduced assessment is applied automatically—no application is requiredecowatch.com. -
Sales‑tax credit for businesses – Business‑owned renewable‑energy equipment qualifies for a state sales‑tax creditsolarinsure.com. There are no state rebates for residential solar systems.
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Utility programs – Some utilities offer buy‑back programs or low‑interest loans for energy‑efficiency improvements. We can help you check availability in your service area.
Financing considerations
Even without the federal tax credit after 2025, solar and energy‑efficiency upgrades can still deliver attractive returns over time. Financing can spread out the up‑front costs, but it also introduces interest charges and other terms that affect your payback period. We can:
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Explain how loan terms, leases or power‑purchase agreements (PPAs) might impact your return on investment and cash flow.
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Show you how combining financing with state incentives (like the property‑tax cap) improves long‑term savings.
Important: We do not endorse or recommend specific financing products. Our role is to help you understand the numbers and make an informed decision.
Ready to explore your options? Contact us to discuss available incentives and learn how financing might influence your solar or efficiency project’s ROI.