The End of the Solar + Battery Tax Credit
OBBB Changes the Rules: What USVI Home and Business Owners Need to Know
If you’ve been “thinking about it” for a while, right now might be the time to make a decision about solar.
On July 4, 2025, the One Big Beautiful Bill (OBBB) was signed into law, and it changes the rules for federal clean energy incentives — especially for residential solar and battery projects. For the US Virgin Islands, where high power costs and grid reliability are constant challenges, this truly matters.
What’s the 30% Solar Tax Credit?
For years, the Residential Clean Energy Credit (also known as the ITC) has let homeowners deduct 30% of the cost of installing solar panels or a home battery from their federal income taxes. This has often meant savings in the thousands of dollars.
What’s Changing in 2026?
The residential Solar and Battery Credit ends after Dec 31, 2025. Installations completed after Jan 1, 2026 will generally not qualify.
Business credits (under different rules) will remain, but with tighter timelines for starting projects and foreign sourcing restrictions that could disqualify some equipment.
How This Impacts USVI Residents
Homeowners: If you’ve been on the fence, waiting may mean losing out on the 30% federal credit entirely.
Business owners: You may still qualify after 2025, but only if you meet new start dates and sourcing rules — something to discuss early with your installer and tax advisor.
Why Timing Matters in the USVI
The combination of limited installers, potential delays, and rising demand in 2025 means waiting any later in the year could push your project into 2026 — too late for homeowners to get the credit.
Bottom Line
If you’re in the Virgin Islands and thinking about solar or battery storage:
Homeowners: Plan now, get quotes, and schedule installation well before the end of 2025.
Business owners: Confirm your eligibility and start early to avoid missing new deadlines.
As always, consult your tax professional before making decisions — these rules are complex, and your situation may differ.
Contact VI Solar Technologies today for a free consultation:
Email: hello@visolartech.com
Call: (340)244-4434
Don’t miss your chance to save thousands with the 30% solar tax credit!
For more information about the OBBB and its affect on clean energy tax credits, read more here:
https://www.irs.gov/credits-deductions/residential-clean-energy-credit
https://www.solar.com/learn/trump-and-the-fate-of-the-30-solar-tax-credit