Author: Debra Lyles        Published: 11/24/2025    Debra Lyles MBA

Meeting summary

Quick recap

The meeting focused on discussing the upcoming expiration of federal tax credits for residential solar systems and exploring various aspects of solar energy incentives, including Power Purchase Agreements and renewable energy credits. The discussion covered regulatory challenges in the PJM region, data center energy demands in Northern Virginia, and the impact of artificial intelligence and blockchain technology on energy costs. The conversation concluded with an examination of electricity rate hikes, the importance of solar energy initiatives for Black-owned media, and upcoming events related to solar energy and climate policies.

Next steps

• Ronald: Have Debra back on the show after the first of the year to continue the discussion about solar tax credits
• Homeowners interested in solar: Contact solar companies to research if they’re accepting new customers and inquire about Power Purchase Agreements before the December 31st deadline
• Homeowners considering solar: Check with their accountant to determine if the 30% federal tax credit would provide actual benefit based on their tax situation
• Listening audience: Visit PositiveChangePC.com News and Events tab to access the GoFundMe link to support the show

Summary

Solar Tax Credit Deadline Discussion

Ronald and Debra discussed the upcoming expiration of the 30% federal tax credit for residential solar systems on December 31st, 2023, emphasizing the need for homeowners to act quickly if they wish to benefit from this incentive. Debra explained the difference between residential and commercial solar tax credits, noting that third-party residential solar companies can still offer the 40% tax credit to customers, potentially leading to cheaper installations. She also clarified that the tax credit applies to the total cost of installation, including labor and permits, and is based on domestic content. Ronald raised a concern about how fixed-income homeowners, such as retirees, might benefit from the tax credit, to which Debra responded that the credit is a federal tax benefit and its effectiveness would depend on the homeowner’s tax situation.

Solar Tax Credits and Challenges

Ronald and Debra discussed the federal tax credit for solar projects, which expires on July 31, 2027, but projects starting construction by July 4, 2026, may still be eligible if placed in service by the end of 2027. They explained the concept of Power Purchase Agreements (PPAs) and how they allow companies to claim tax credits, which can be passed on to consumers through PPA rates. Ronald also described renewable energy credits (RECs), or green credits, which are generated when solar systems produce more energy than used, and highlighted the high REC values in Washington, D.C. He noted the challenges faced by the District’s Solar for All program due to budget constraints, leading to Mayor Bowser pulling the budget for DCSEU, which regulates and inspects solar installations.

Data Center Energy Policy Challenges

Ronald discussed the concentration of data centers in Northern Virginia and their energy demands, highlighting the impact of artificial intelligence, crypto mining, and blockchain technology on energy costs. He explained the regulatory challenges within the PJM region, which serves 65 million customers, and the significant rate hikes proposed in 2023, which Mr. Willie Phillips, the head of the Federal Regulatory Commission, managed to prevent. The discussion also touched on the influence of corporate campaign contributions on policy decisions affecting energy costs.

2024 Electricity Rate Hike Challenges

Ronald and Debra discussed the significant electricity rate hike in 2024, highlighting the impact on consumers and the challenges in reducing costs through solar and wind projects. They emphasized the importance of understanding how these costs are determined and the need for urgent action to take advantage of tax incentives provided by the Biden-Harris administration. Debra recommended that individuals interested in installing PV systems research companies offering Power Purchase Agreements, as some investors have pulled out of the marketplace, making it crucial to ensure companies are still accepting new customers.

Advancing Solar Energy for All

Ronald and Debra discussed the challenges facing Black-owned media and the lack of representation in solar energy initiatives, highlighting the need for education and awareness in the African American community. They emphasized the importance of solar energy as a solution to rising utility costs and its long-term benefits, while also addressing the current threats to the solar industry from other sectors. Ronald announced upcoming events and news related to solar energy and climate policies, encouraging listeners to support the show through donations to ensure its continuation.

ITC Tax Credits

It’s important to note:

The residential solar tax credit (Section 25D) is set to expire on December 31, 2025, with no phase-out period. This means homeowners who purchase solar systems will not be able to claim the 30% credit after this date.

Third-party-owned residential solar companies that lease projects to customers can still collect the 48E ITC, and could then potentially pass that savings down to customers via cheaper installs. 48E projects have a longer runway — they must start construction by July 4, 2026, and must be placed in service before December 31, 2027, to collect the credits.