EnergySage hits record highs as tax credit countdown sparks solar rush
EnergySage saw a 205% year-over-year increase in homeowners working with installers in July 2025 as the residential solar Investment Tax Credit nears its expiration, creating installer backlogs and shifting consumer behavior.
Two hundred and five percent — that’s how much EnergySage says homeowner activity on its solar marketplace jumped in July compared to the same time last year — the largest spike in the company’s history.
The rush began July 4, when Congress passed the “One Big Beautiful Bill Act” and Trump signed the death warrant of the residential solar Investment Tax Credit (ITC). Homeowners now have until Dec. 31, 2025, to install solar if they want the 30% credit, worth an average of $9,000 on a typical system.
“Homeowners are rushing to take advantage of this tax credit before it goes away,” said Josh Levine, chief marketing officer at EnergySage. “The urgency is driving real changes in market behavior, putting pressure on installers and utilities as demand surges and timelines tighten.”
Hear a more in-depth conversation on solar installation business without the residential solar ITC in this edition of Power Forward!
Installers feel the squeeze
That pressure is real. In a July survey, 35% of solar installers told EnergySage they expect to stop taking new customers before Oct. 1, 2025, and nearly one in ten already say they’re full. Permitting offices and utilities — never known for their speed — are now critical bottlenecks in the sprint to qualify.
“With the process requiring not just installation, but permitting and utility interconnection, we are helping thousands of homeowners navigate going solar quickly,” said Maria Kiley, solar advisor at EnergySage.
Why now matters
The 30% ITC has been the cornerstone incentive for U.S. residential solar since its introduction in 2006. Its abrupt end at year’s close turns every week into deadline season. Demand is colliding with broader stressors: electricity prices trending higher due to aging infrastructure, extreme weather events, and the surge of AI-driven data center growth that federal forecasts say could push consumption up 130% by 2030.
What’s next
Industry watchers expect a cliff in January 2026, as the ITC expiration takes hold. EnergySage’s Levine predicts a slowdown but not a collapse.
“While this current surge is good for the industry, we anticipate a temporary slowdown in activity once the credit goes away in January,” Levine said. “Even with that expected slowdown, we remain bullish on the long-term value of solar. It offers clear and unmatched economic and grid benefits, especially for homeowners.”
The bet from EnergySage and its installer partners: policy shocks may create short-term whiplash, but the fundamentals of residential solar will keep homeowners coming back once the dust settles.
