Can I Still Claim the 30% Solar Tax Credit in 2025?

For homeowners in Los Angeles and across Southern California, 2025 is a turning point for solar. The 30% Federal Solar Investment Tax Credit (ITC)—the single most valuable incentive for cutting solar installation costs—is set to expire for residential systems after December 31, 2025.

That means this year is your last chance to claim thousands of dollars in tax savings on solar panels, battery storage, or both. Waiting until 2026 could cost homeowners 30% more on their projects, making the difference between going solar affordably or missing out altogether.

With California electricity rates climbing another 5–7% in 2025, and with NEM 3.0 billing slashing export credits, there has never been a stronger financial case to act now.

What Is the Federal Solar Tax Credit?

The Federal Solar Investment Tax Credit (ITC) allows homeowners to deduct 30% of the cost of installing solar energy systems from their federal taxes.

For example:

• A $20,000 solar system = $6,000 back in tax credits
• A $30,000 solar + battery system = $9,000 back in tax credits

Eligible expenses include:

• Solar panels (like Qcells, US Power’s exclusive partner brand)
• Inverters and racking systems
• Solar batteries (e.g., Q.HOME CORE or Tesla Powerwall)
• Installation labor and permitting fees

But after 2025, the residential credit drops to 0%, making this the final year to take full advantage.

Who Qualifies for the 2025 Solar Tax Credit?

To claim the ITC in 2025, you must:

• Own your solar system (leases or PPAs don’t qualify)
• Have the system installed and placed in service by December 31, 2025
• Owe federal income taxes (the credit reduces your liability; it’s not a cash refund)

For Southern California homeowners, timing is critical. Permits and utility approvals in cities like Los Angeles, Sherman Oaks, and Pasadena can take weeks or even months. Delaying could push your installation into 2026, making you lose the credit entirely.

Why Adding Battery Storage in 2025 Is a Smart Move

Solar alone cuts bills, but pairing it with battery storage maximizes the benefits under NEM 3.0. Instead of sending excess energy back to the grid for pennies, you can store it and use it later, avoiding expensive evening rates.

Even better: The 30% ITC applies to batteries too, whether you add them now or retrofit them later. And in California, homeowners can also stack the Self-Generation Incentive Program (SGIP) rebate, which lowers battery costs even further.

That means a $12,000 battery system could qualify for:

• $3,600 in federal tax credits
• $2,000–$3,000 in SGIP rebates
  = Over 50% off the cost of storage

The Cost of Waiting Until 2026

Some homeowners think they can wait until next year, but the math proves otherwise:

• Lose the 30% tax credit → pay thousands more out of pocket
• Miss out on peak savings under NEM 3.0
• Higher electricity rates in 2026 mean lost compounding savings
• Blackout risk continues to grow in SoCal, making battery storage even more urgent

Every month of delay costs money. For many families, that could mean $1,000–$2,000 in higher energy bills just by postponing solar installation.

How to Claim the Solar Tax Credit in 2025

The process is straightforward but requires careful timing:

1. Schedule a Solar Consultation – US Power helps design your solar system and confirm eligibility.
2. Install Before Dec 31, 2025 – Your system must be placed in service (not just contracted).
3. File IRS Form 5695 – This form applies your 30% credit toward your federal tax liability.
4. Keep Documentation – Save receipts, contracts, and inspection records for proof.

US Power simplifies this process for every client, ensuring nothing slips through the cracks.

Why Choose US Power for Solar in 2025?

Not all solar companies can deliver on time—or guarantee American-made quality. At US Power, we:

• Partner directly with Qcells, offering factory-direct pricing on premium panels made in Georgia.
• Provide both solar-only and solar + storage solutions designed for NEM 3.0 savings.
• Handle permits, interconnection, and incentive paperwork to make claiming credits stress-free.
• Focus exclusively on Southern California homeowners, with local expertise and fast installs.

Choosing US Power means choosing a trusted, local partner who can get your system running before the 2025 deadline.

The Time to Act Is Now

The clock is ticking. After December 31, 2025, the 30% Federal Solar Tax Credit disappears for homeowners. For Southern California families already battling rising utility bills, this is the last year to cut installation costs and lock in decades of savings.

Don’t risk missing out. Contact US Power today for your free solar consultation and secure your eligibility for the 2025 tax credit before it’s too late.

Make 2025 the year you take control of your energy costs—with factory-direct Qcells solar panels and battery storage solutions from US Power.