Last Chance for 30% Solar Savings: Tax Credit Deadline 2025

California homeowners have long embraced solar as a way to cut utility bills and protect themselves from volatile electricity rates. But in 2025, the stakes are even higher. The 30% Federal Residential Clean Energy Tax Credit—a policy that has saved homeowners thousands of dollars on solar installations—is set to expire on December 31, 2025.

That means anyone in Los Angeles, Sherman Oaks, San Diego, or anywhere in Southern California who wants to install solar panels or battery storage must act quickly. Missing the deadline could mean losing out on thousands of dollars in federal savings, making solar significantly more expensive in the future.

This guide will explain everything you need to know about the 2025 solar tax credit deadline, how it impacts California homeowners under NEM 3.0, and why partnering with a local company like US Power, with factory-direct access to Qcells solar panels, ensures the best return on your investment.

2025 Federal Solar Tax Credit Deadline Explained

The Federal Solar Tax Credit, also known as the Residential Clean Energy Credit, allows homeowners to deduct 30% of the total cost of solar panel installation from their federal taxes.

• Expires: December 31, 2025
• Applies to: Solar panels, inverters, balance of system equipment, labor, and battery storage systems of 3 kWh or greater
• Typical savings: For a $24,000 installation, homeowners can save around $7,200 on their taxes

⚠️ Important: To qualify, your solar project must be installed, connected, and operational by year-end 2025—signing a contract isn’t enough.

Who Qualifies for the Solar Tax Credit in California?

The credit applies to:

• Primary residences and secondary homes you own in the U.S.
• New construction homes (as long as solar is installed before occupancy)
• Battery storage upgrades (even if added later, as long as they’re 3 kWh or larger)

However, rental properties and third-party-owned systems (leases/PPAs) do not qualify. For California homeowners, that means direct ownership—purchasing solar outright or through financing—is the best way to maximize savings.

How Solar Plus Storage Boosts Savings in 2025

With California’s transition to NEM 3.0, homeowners are paid far less for exporting excess solar energy to the grid. Instead, the financial benefits now come from self-consumption and battery storage.

Here’s why pairing solar with batteries makes sense in 2025:

• Peak savings: Store daytime solar energy and use it during expensive evening hours.
• Power resilience: Protect your home during outages and wildfire-related shutoffs.
• Tax credit applies: Batteries qualify under the 30% credit, making storage more affordable.

For example, adding a $10,000 battery system could save you an additional $3,000 in federal tax benefits before the deadline.

Federal vs. California Solar Incentives: A 2025 Comparison

Federal Tax Credit (Expires Dec. 31, 2025)

• 30% of total project cost
• Covers panels + battery storage
• Available to all U.S. homeowners who own their systems

California Incentives in 2025

• Self-Generation Incentive Program (SGIP): Rebates for installing battery storage, with higher incentives for low-income or fire-prone areas
• Property Tax Exemption: Solar systems are exempt from increasing your property’s assessed value in California
• Utility Savings: By offsetting expensive time-of-use rates under NEM 3.0, solar and storage can save thousands annually

Together, these incentives create a rare “stacked” savings opportunity in 2025 that may not exist beyond this year.

What This Means for Southern California Homeowners

Southern California homeowners are in a unique position:

• High utility rates: LADWP and SoCal Edison customers face some of the highest rates in the country. Solar offers long-term protection.
• Climate-driven outages: With rising wildfire risks, storage ensures energy security when the grid goes down.
• Real estate value: Solar-equipped homes sell faster and for more in California’s competitive housing market.

In short, waiting until after the 2025 tax credit expires could add thousands in upfront costs while reducing long-term savings potential.

Why Choose US Power for Your Solar Installation

At US Power, we specialize in helping Southern California homeowners maximize every incentive available. As a factory-direct partner with Qcells, one of the world’s leading solar manufacturers, we deliver:

• Exclusive pricing: Lower costs by cutting out middlemen
• American-made panels: High-efficiency Qcells modules built for long-term performance
• Expert installation & project management: From permitting to interconnection, we handle everything
• Tailored designs: Customized solar + storage systems that fit your home’s energy needs under NEM 3.0

By acting now, you can lock in 30% federal tax credit savings while ensuring your home is powered by the latest solar technology.

Don’t Miss the 2025 Deadline

The expiration of the 30% Federal Solar Tax Credit marks a turning point for solar affordability in California. With NEM 3.0 already reshaping the value of solar energy, and electricity rates continuing to rise, 2025 is the year to act.

Partner with US Power to take advantage of factory-direct Qcells solar panels, expert installation, and guidance on both federal and state-level incentives. Secure your system before the deadline—and start saving for decades to come.

Ready to claim your 30% savings before it’s gone? Contact US Power today for a free consultation and solar estimate.