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Federal Proposal Threatens Solar Tax Credit: What It Means for Florida and the Future of Clean Energy

A new federal budget proposal could eliminate one of the most effective tools for homeowners investing in renewable energy: the 30 percent Residential Solar Investment Tax Credit (ITC). If passed, the proposal would end the ITC for residential systems placed in service after December 31, 2025, and would also accelerate the phaseout of the commercial credit under Section 48E.

At Alternate Energy Technologies (AET), Florida’s trusted manufacturer of solar thermal systems, we believe this proposal puts local jobs, economic progress, and access to clean energy at serious risk.

Why This Matters for Florida

Florida is not just the Sunshine State by name. It is recognized as a national leader in solar energy.

  • Florida ranks among the top five states for total installed solar capacity, according to the Solar Energy Industries Association (SEIA)

  • The state has one of the fastest-growing solar job markets in the country

  • Florida’s year-round sun makes it ideal for solar water heating and energy savings

Many Florida homeowners depend on the federal solar tax credit to make clean energy upgrades financially feasible. If the ITC is removed, the cost of going solar rises significantly, which could reduce adoption and slow the growth of the entire industry.

What Is at Risk

The elimination of the solar tax credit affects every level of Florida’s solar economy:

  • Homeowners may find solar energy financially out of reach without federal support

  • Installers and contractors could see a drop in demand for residential projects

  • Distributors and manufacturers like AET face disrupted supply chains and reduced sales

  • Florida’s energy goals may fall behind just when we need acceleration the most

This is not just about tax policy. It is about protecting Florida's future, reducing utility bills, creating jobs, and promoting energy resilience.

Take Action: Help Protect the Solar Tax Credit

Whether you are a homeowner, contractor, distributor, or supporter of renewable energy, your voice matters right now.

Reach out to your members of Congress and tell them why the solar tax credit is essential for Florida.

  • Share how it impacts your business, your customers, and your ability to save money or create jobs
  • Emphasize that solar incentives are working and should be preserved
  • Make the case that solar energy strengthens local economies and energy independence

Not sure who represents you in Congress? Use this link to find your elected officials: Find Your Representative: https://www.house.gov/representatives/find-your-representative

AET’s Commitment to Clean Energy and Local Jobs

Since 1975, AET has proudly manufactured solar thermal water heating systems in Green Cove Springs, Florida. We are committed to helping families, businesses, and communities save energy and lower costs with clean, American-made technology.

We will continue to stand with Florida’s solar professionals, homeowners, and partners to defend the policies that power our clean energy future.