Solar Incentives and Tax Credits in 2025: What You Can Still Claim

Introduction

Thinking about going solar but worried you missed out on the big savings?
Good news: solar incentives and tax credits are still alive and well in 2025 — and they can seriously lower the cost of your solar panel system! 🌞

Thanks to ongoing government support for clean energy, homeowners and businesses alike can still take advantage of valuable programs that make solar energy more affordable than ever.
In this guide, we'll break down exactly what solar incentives you can still claim this year and how to make the most of them!

What Are Solar Incentives and Tax Credits?

Solar incentives are programs designed to encourage people to adopt renewable energy by offering financial benefits, such as:

• Tax credits (reduce your owed income taxes)

• Rebates (cash back after installation)

• Performance payments (getting paid for the power you generate)

• Net metering (earning credits by sending unused solar energy back to the grid)

In short: incentives = major savings on your solar investment!

Top Solar Incentives and Tax Credits You Can Claim in 2025

1. Federal Solar Investment Tax Credit (ITC)

Status in 2025:
Still available! 🎉

Details:

• Claim 30% of the total cost of your solar system (including panels, batteries, installation) as a credit on your federal income taxes.

• Available for both residential and commercial solar installations.

• No maximum limit for the amount you can claim!

Example:
If your system costs $20,000, you could get a $6,000 tax credit!

2. State and Local Solar Incentives

Many states, counties, and cities offer additional perks to encourage solar adoption.

Common Examples:

• Cash rebates

• Property tax exemptions (so your home's value increase doesn't raise your taxes)

• Sales tax exemptions (pay no sales tax on your solar system)

• State-specific tax credits (like New York, Massachusetts, and California offer)

Tip:
Check your local energy office or search DSIREUSA.org to find programs in your area.

3. Net Metering Programs

Net metering lets you sell your extra solar energy back to the grid and get credit on your electric bill.

How it works:

• During sunny days, your system might generate more power than you use.

• That extra power goes back into the utility grid.

• Your utility company credits your account, helping you save even more money!

Note:
Net metering rules vary by state — be sure to check your local utility provider.

4. Solar Renewable Energy Certificates (SRECs)

In certain states, you can earn SRECs for the clean energy your system produces — and then sell them for extra income!

Where available:
Mostly in states with renewable portfolio standards (like New Jersey, Pennsylvania, and Maryland).

5. Battery Storage Incentives

Good news if you want to add a solar battery like a Tesla Powerwall!
In many areas, battery storage now qualifies for separate rebates and tax credits, helping you save even more.

Example:

• California’s SGIP Program offers big rebates for adding home batteries.

• The Federal Solar ITC covers battery costs if the battery is charged primarily by solar power.

How to Claim Your Solar Incentives

1. Keep Detailed Records: Save your invoices, contracts, and proof of purchase.

2. File IRS Form 5695: When you do your taxes, this form claims your Federal Solar Tax Credit.

3. Apply Locally: Some state or utility rebates require a separate application — check early!

4. Work with a Solar Pro: Many solar installation companies help you navigate incentives as part of their service.

Quick FAQ: Solar Incentives 2025

Q: Is the 30% federal tax credit ending soon?
A: It’s set to remain at 30% through 2032 under the Inflation Reduction Act. Plenty of time to claim it!

Q: Can I get incentives if I lease solar panels?
A: Usually, no — the owner of the system (the leasing company) gets the benefits.

Q: Do solar incentives apply to solar batteries?
A: Yes, as long as the battery is mostly charged by solar energy.

Final Thoughts

Solar energy is still one of the smartest investments you can make in 2025 — and with generous tax credits, rebates, and incentives, it's more affordable than ever. 🌞
Whether you're looking to power your home, RV, or business, taking advantage of these programs can save you thousands and help you live greener.

Don't wait too long — the earlier you start, the faster you save, and the bigger your impact!