# How the Repeal of Energy Tax Credits Could Impact Your Electricity Bill
If you have been considering installing **solar panels for your home**, now may be the time to take action. A recent report from NERA Economic Consulting warns that the potential repeal of key federal energy tax credits could cause electricity rates to rise across the country. Residential customers could see an average **7% increase by 2026**, with some states experiencing even higher price hikes.
## What Are the Energy Tax Credits at Risk?
The two main tax credits under review are:
– **Investment Tax Credit (ITC)** – This credit covers **30% of the installation cost** for renewable energy projects, including **solar panels for your home** and commercial installations.
– **Production Tax Credit (PTC)** – This rewards electricity producers for generating clean energy, issuing tax incentives based on kilowatt-hours (kWh) of production.
These credits encourage the adoption of **solar** and other renewable energy technologies by reducing upfront costs for homeowners, businesses, and utility-scale developers. Without them, the financial burden of renewable energy projects could shift back to consumers.
## How Could This Affect Your Electricity Bill?
According to the report, the repeal of
Original Article: https://pv-magazine-usa.com/2025/03/06/repeal-of-energy-tax-credits-would-drive-inflation/
