Ryan Wallace of Texas Solar Professional shares insights on navigating a changing solar market as the 30% federal tax credit nears its end.
Ryan Wallace spends his days helping Texas homeowners harness sunlight to power their homes. But lately, his conversations have taken on new urgency. “We’re at a tipping point,” Wallace explains. “For homeowners considering solar, 2025 is not just another year-it’s likely their last best opportunity.”
As the founder and owner of Texas Solar Professional, Wallace has guided countless Texas residents toward smarter, cleaner energy. Yet even he acknowledges that the solar landscape is shifting dramatically, driven largely by a significant policy change set for the end of this year.
At the heart of this change is the 25D Residential Clean Energy Credit, a generous federal incentive allowing homeowners to deduct 30% of the cost of qualified solar systems from their taxes. But the recently signed “One Big Beautiful Bill,” effective July 4, 2025, is about to turn off the lights on this incentive entirely for residential solar installations placed into service after December 31, 2025.
“Unlike past reductions where incentives gradually phased down, this time it’s an abrupt cutoff,” Wallace emphasizes. “Come January 1, 2026, the credit simply disappears for homeowners. This creates a real sense of urgency.”
But the changing incentives aren’t the only issue reshaping solar in 2025. Wallace points out an alarming trend: more than 100 U.S. solar companies have either filed bankruptcy or ceased operations over the past year, marking the largest wave of closures in two decades. This shakeout includes big names like SunPower, Sunnova, and Solar Mosaic.
“High interest rates and changing policies, like California’s NEM 3.0, created a perfect storm,” Wallace notes. “Many companies, even large national brands, faced serious financial strain.”
For Texas homeowners, however, Wallace sees a silver lining. Solar energy remains an attractive financial investment, especially where retail electricity rates surpass 13 cents per kWh. “Even with higher interest rates, we’re seeing payback periods typically between six and eight years and internal rates of return above 10%,” Wallace adds.
Still, given recent industry volatility, Wallace stresses the importance of selecting a stable, reputable installer. “With around 5% of solar contractors failing each year, it’s crucial homeowners do their homework,” Wallace advises. “Look closely at reviews & employee status for one thing. My crews are all W2 employees and I can’t say the same for everyone else.”
Moreover, Wallace advocates for solutions “beyond the panel,” such as integrating smart-home load management or battery storage systems, which enhance both energy resilience and savings-especially critical as the tax incentives fade away.
“Solar isn’t just about panels anymore. It’s about creating a robust, efficient home energy ecosystem,” Wallace says. “That’s how homeowners will continue reaping maximum benefits long after 2025.”
As the solar market evolves, Wallace’s advice remains clear: “Take advantage of current incentives while they last, choose your provider carefully, and think holistically about your home’s energy future.”
For Texas homeowners, 2025 represents a pivotal moment. “If you’ve been on the fence,” Wallace concludes, “now is the time to act.”
Visit www.TexasSolar.Pro or call (469)581-0008 to learn more about Solar or Tesla Roofs & get an Energy Audit with Ryan.
