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Solar power continues to grow in California, but recent policy changes are shaping how fast homeowners and businesses can benefit. From federal tax credit adjustments to California’s ongoing debate over net metering, the landscape is shifting. If you’ve been thinking about going solar, these updates show why now is the time to act.

Federal Solar Tax Credit Rules Are Tightening

The federal Investment Tax Credit (ITC) still offers homeowners a 30% deduction on solar and battery system costs through 2025. However, large-scale projects now face stricter requirements to qualify, signaling a more regulated approach ahead.

For California homeowners, this means two things:

  • Residential systems still qualify for the full 30% in 2025, but the credit will begin stepping down after this year.
  • Acting before the phaseout ensures you maximize federal savings and protect yourself against future rule changes.

Tariffs Could Increase Solar Costs

New trade measures have added tariffs on certain imported solar equipment, which could push costs up for some projects. For California families, this underscores the importance of choosing U.S.-made solar panels, like those from Qcells, which are manufactured domestically and less affected by international trade shifts.

With California’s rising electricity prices, securing a system with stable pricing and a reliable supply chain can make a major difference in long-term savings.

Interconnection Delays Remain a Challenge

Even when your solar system is installed, it can’t start saving you money until it’s connected to the grid. Across California, homeowners have reported delays from utilities in approving interconnection, slowing down the time it takes to activate systems.

The good news: policy reforms are pushing utilities to speed up approvals, but timelines vary widely by city and utility provider. Working with an experienced local installer like US Power – Axia by Qcells ensures your project is handled by a team that knows how to navigate local utility processes.

Net Metering 3.0 Faces New Legal Challenges

California’s Net Energy Metering (NEM) program, which determines how much credit you receive for sending excess solar power back to the grid, has been one of the biggest factors in solar savings.

Under NEM 3.0, compensation for exported energy was reduced, making solar + battery storage the most effective way to maximize savings. However, the policy is now under legal review, and the California Supreme Court is considering whether it complies with existing state laws.

While the outcome remains uncertain, homeowners who install solar now can secure the best available terms and avoid risks of future reductions.

What Homeowners Should Do Right Now

To protect your savings and make the most of 2025 incentives, here’s what California families should consider:

  • Act before December 31, 2025 to secure the full 30% federal tax credit.
  • Choose American-made panels like Qcells to avoid tariff-driven price hikes.
  • Add battery storage to maximize value under NEM 3.0 and protect against blackouts.
  • Work with a trusted local installer to handle permitting, utility delays, and system design tailored to California’s regulations.

Solar remains one of the smartest investments a California homeowner can make in 2025—but the rules are changing quickly. With tax credits set to phase out, new tariffs on imports, and net metering still in flux, the safest move is to go solar before the end of this year.

At US Power – Axia by Qcells, we provide factory-direct pricing on high-efficiency, American-made panels and expert local installation across Southern California. That means you get the best technology, the best warranties, and the best long-term savings—without the policy headaches.

Don’t wait for uncertainty to cut into your savings. Contact US Power today to lock in the 30% federal tax credit and start generating your own clean energy.

Solar News and Innovations

Published

September 18, 2025

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