If you’ve been thinking about going solar, you’ve probably heard about the federal solar tax credit that currently covers 30% of installation costs. But what happens when those credits expire after 2025?
According to a recent article from EnergySage — one of the nation’s most trusted clean-energy resources — solar energy still makes financial sense even without the tax credit. [Solar still pays for itself without the tax credits.] Equipment prices, rising utility rates, and the growing lifespan of solar panels continue to make solar one of the smartest long-term investments a homeowner can make.
Solar Costs Are Down, Electricity Rates Are Up
EnergySage reports that solar panel prices are at record lows — around $2.48 per watt in 2025, compared to $7.50 per watt just a decade ago. Meanwhile, electricity costs keep climbing. The U.S. Energy Information Administration (EIA) expects residential power rates to rise between 15% and 40% by 2030, and could double by 2050.
That means every month you delay switching to solar, you’re paying more to your utility for power that will only get more expensive.
When you install solar, you lock in your electricity rate and protect yourself from future price spikes — gaining true energy independence.
The Payback Period May Be Longer — But the Rewards Last Decades
Without the 30% federal tax credit, EnergySage estimates the average solar payback period could increase from seven years to around ten. But solar panels often last 25–30 years, which still leaves homeowners with 15 to 20 years of free electricity after their investment is paid off. Sun Collectors provides a 30-year Warranty that covers your Solar System (parts + labor).
With the right financing or lease options, many homeowners in Central Illinois can still start saving from day one — no tax credit required.
Why Waiting Could Cost You More
EnergySage highlights several major factors that are driving electricity prices higher:
- Increased demand from AI data centers and electric vehicles
- Rising natural gas prices
- Aging U.S. grid infrastructure and costly upgrades
These pressures mean utility costs will continue to rise — and homeowners without solar will continue to feel it.
Solar remains one of the only ways to control your energy costs long-term while adding value to your home.
Sun Collectors: Your Local Solar Experts
At Sun Collectors, we’ve helped hundreds of Illinois homeowners and businesses make the switch to solar with transparent education, expert installation, and $0-down financing options. Whether you want to go solar before the federal incentives end or simply want to secure your energy future, our team can guide you every step of the way.
Call (309) 323-8260 or visit SunCollectors.solar to schedule your free solar consultation today.
Because no matter what happens with federal incentives — solar still pays for itself.
Resources: