Starting December 31, 2025, the 30% Federal residential solar tax credit will officially end with no phase down period due to the recently signed 2025 Federal budget. In order to take advantage of the full residential solar tax credit, all home and business owners must have their solar systems fully installed and commissioned by the end of 2025. If you are considering going solar, now is the time to act, and the Department of Licensing and Consumer Protection (DLCP) is here to help.
- Contractors: Solar contractors are advised to work quickly to secure permits, the necessary inspections, and equipment to take advantage of the tax credit.
- Homeowners: Beware of contractors using aggressive sales tactics, pushing for solar installation after the scheduled end date of the tax credit on December 31, 2025.
Here are common red flags to look for when considering going solar before December 31, 2025:
- Contractors are required to have a license in the District. In order to be licensed by DLCP, contractors must provide proof of liability insurance and other items to protect both the contractor and consumer. DLCP advises homeowners to only hire licensed contractors to complete improvement projects to ensure a quality business transaction. Use the DLCP online system SCOUT to verify if a contractor is licensed to do business in DC.
- Avoid unsolicited or third-party contractors with aggressive sales tactics. An unsolicited contractor can give you false promises of a “free” solar system, or deceptively say you need a new roof or electrical system before installation, which will ultimately cost you thousands of dollars, leaving you with improperly completed projects and/or damage to your property.
- Establish a clear contract and timeline. Be wary of any contractor who demands you pay more than a third of the total fee upfront or wants to start work immediately without an agreed upon timeline and payment schedule. This early price tag or rushed transaction is likely a scammer who will do shoddy work, leave without working at all and take your “deposit,” or add extra charges or fees before the work is completed or completed at all.
- Do your research. If you wish to take advantage of the solar tax credit before the December 31st, 2025 deadline, be sure to research the total cost of a solar system and energy savings. Also, make sure you understand how long it will take before your energy savings covers the price of the system. You may also want to obtain bids from more than one licensed contractor.
If you’ve been the victim of deceptive or unlawful activity by a business or individuals, file a complaint with the DLCP Consumer Protection Unit. DLCP investigators will work to make you (the complainant) whole through mediation, regulation, and the issuance of notices of infraction (NOI).
DLCP can issue notices of infraction for violations of DC’s Consumer Protection Procedures Act (CPPA) with fines starting at $1,000. In addition, DLCP also has the authority to issue cease and desist and business license revocation orders, in appropriate cases. Also, trade professionals licensed by DLCP can face possible disciplinary actions from their specific professional board.
The DLCP Consumer Protection Unit supports District entrepreneurship and economic growth, while protecting and educating consumers. DLCP have investigated over 1,000 Home Improvement violations and continue to investigate violations against District consumers, pursuant to the District's statutes and regulations.
If you have any questions or need further assistance, please contact [email protected] or (202) 671-4500. DLCP is here to help.