Trump has been in office for some time now, but during this period, he hasn’t mentioned anything about the 30% solar tax credit. As a result, many people considering solar installation keep asking us whether Trump will soon reduce or even cancel the 30% tax credit and whether they still have time to install solar.

Our response to this question is as follows:

First, it is quite possible that Trump will take action against this tax credit. However, the good news is that any changes are unlikely to take effect immediately, at least not within this year. So, if you are planning to install solar, you still have time this year. However, you should prepare at least six months in advance, as the median time from contract signing to final grid connection across the U.S. is about six months. Of course, our company works faster, but many companies, especially large ones, can take up to a year. You can often find complaints about this online. Therefore, it is always best to plan ahead.

Why Do We Believe Trump Will Cut Solar Incentives?

The first reason is that Trump does not favor renewable energy. It is a well-known fact that the Republican Party represents the interests of the traditional energy sector. Any benefits or subsidies for the solar industry are seen as a threat to traditional energy, which means there is strong motivation to reduce or even eliminate these incentives.

Some people argue that since Elon Musk has a good relationship with Trump, he might persuade him not to take action against solar. After all, Tesla’s solar business would be affected.

However, there are several counterpoints to this argument:

1. There have been reports that Musk is actively pushing to eliminate all tax credits for electric vehicles. Since Tesla has already secured a large market share, Musk may see this as a way to squeeze out other competitors. A similar strategy could apply to solar.

2. Musk has never shown much interest in Tesla’s solar division. Given how outspoken he is, he rarely mentions Tesla’s solar business. If one day Tesla were to spin off its solar division, it wouldn’t be surprising at all. As we’ve mentioned before, there isn’t a significant difference between different brands of solar panels from a consumer perspective. This does not fully align with Tesla’s philosophy.

3. Tesla’s solar customer service reputation is poor. Customers often wait a month for technical support and two to three months for equipment replacement. This does not indicate a company that is highly committed to the solar industry.

Because of these reasons, we don’t believe Musk will have any meaningful influence on Trump’s solar policies.

When Will Changes Take Effect?

While we believe Trump is likely to target residential solar subsidies, the good news is that any new policy will not take effect immediately.

1. Legal Process: Changing federal tax incentives involves legal procedures and congressional approval. This will lead to intense lobbying and negotiations, delaying implementation.

2. Transition Period: There will be a transition period to accommodate businesses and individuals who have already signed contracts. As we mentioned, the median time for solar installation from contract signing to completion is about six months, and for some companies, it can take up to a year.

Additionally, large solar companies typically offer leasing or PPA (Power Purchase Agreement) options, which allow them to claim the tax credits themselves. These tax incentives contribute significantly to their profits. If the 30% tax credit were suddenly removed or reduced to 25%, these companies’ profit margins would be severely impacted, and some might even face bankruptcy.

This is why, immediately after Trump won the election, the stock prices of the largest U.S. solar companies dropped by 30% to 50% overnight. If these companies go bankrupt, customers could face contract cancellations and financial losses. Furthermore, those who have purchased solar systems outright but have not yet completed installation could suddenly see their costs increase by 30% or more. With so many financial and public pressure points, we believe there will be some time for consumers to prepare before any policy changes take effect.

Act Now Before It’s Too Late

That being said, we have all witnessed Trump’s decision-making style—he does not necessarily follow conventional logic. Regardless of our analysis of the future, taking action as soon as possible is always the best choice. Anxiety comes from inaction.

Most of our customers complete their installations within two to three months, which can help ease your worries.