Solar tax credits set to expire December 31 | What you should know before buying

PHILADELPHIA (WPVI) -- If you've been thinking about getting solar panels, now might be the time to do it. There was a change in the law, so you only have a few months left to take advantage of the solar tax credit.

It's a tight deadline to get the savings, but before you sign for solar, you need to do your homework.

The Troubleshooters have received many complaints about solar companies over the years.

So, here are step-by-step instructions on how to proceed wisely.

RELATED: North Wildwood family turns to Troubleshooters for help with solar panels

Many Consumer Reports members say going solar helped them lower their electric bills, or even bring those bills down to zero.

But it's a costly investment, and the tax credit really helps.

"You can save thousands of dollars with the solar tax credit, which applies to things like solar panels for producing electricity or solar heating," said Paul Hope with Consumer Reports. "The trick is you must buy it and install the system before the end of the year."

And you can't lease any of the components.

For example, it will cost you about $30,000 to install a typical system and the tax credit would reduce that expense to close to $20,000.

"There's no denying that solar is a major investment, and the process for going solar can be pretty involved," he added.

That's why it makes sense to do your research upfront.

Check with your city and/or state to see if they have any specific requirements and to find a good installer and get at least three bids.

Start by looking at companies recommended by your neighbors and make sure they have good online reviews.

Also, go local. Find established companies in your area with expertise about the permitting process. Avoid door-to-door sales and high-pressure sales tactics, including the urgency to sign on the spot.

All too often door-to-door sales people are not affiliated with a local company with a brick-and-mortar location.

"Once you find an installer you want to work with, ask them if they can have your system installed and up and running by the end of 2025 in order for you to get the credit," added Hope.

After signing a contract, the installer will generally have to get the necessary permits, get approval from your utility company, install the panels, schedule inspections, and lastly, get your utility company to connect your panels to the grid all by December 31st to ensure you get the credit.

Like the residential solar tax credit, the Energy Efficient Home Improvement Credit also expires on December 31st.

So if you were thinking about installing Energy Star-certified exterior windows and doors plus upgrading your circuit panels and heat pumps, better get to it right away.