2025 Solar Incentives & Tax Credits are giving homeowners huge opportunities to save on solar this year.
Every year, I get emails from homeowners asking if solar is still worth it, and honestly, 2025 is probably the best year I’ve seen for going solar. Between federal tax credits, state rebates, and even utility paybacks, there’s more money on the table than most people realize.
👉 For more details, check out Energy Run Solar for expert insights and programs available this year.
I’ve been digging through updated programs, talking to installers, and even helping a few friends claim these incentives. So, I figured I’d break it all down in one place—without the confusing jargon.
⚡ Why This Year Feels Different
Energy costs have been creeping up, and at the same time, the government is practically begging people to switch to clean power. The big win is still the Federal Solar Investment Tax Credit (ITC), which cuts 30% off your installation costs. But when you stack that with state programs and utility rebates, it’s wild how much you can save.
Here’s the kicker: Some of these state funds run out fast. I’ve seen people wait just a few months and miss out on thousands.
🌎 1. Federal Solar Investment Tax Credit (ITC)
This is the big one everyone talks about. You can claim the 2025 Solar Incentives & Tax Credits program includes a 30% federal credit. 30% of your entire solar project cost as a tax credit. That’s panels, labor, permits—pretty much everything.
📌 Example: A buddy of mine spent $20,000 on his system last year and knocked $6,000 off his taxes. That’s not a deduction, that’s real money back.
How You Actually Claim It:
Keep every receipt (installation, parts, permits)
File IRS Form 5695 with your taxes
Works for homes and businesses
The credit is locked in until 2032, but after that, it drops to 26%, then 22%, and eventually could vanish.
🏠 2. State Solar Incentives Most People Miss
Every state is different, and some programs are way better than others. Here are a few worth knowing:
California: They’re paying up to $1,000/kWh for battery storage under the SGIP program. Plus, you can still get credits for extra power you send to the grid.
Texas: Austin Energy alone gives a $2,500 rebate, and you won’t pay property tax on your solar setup.
New York: You can grab an extra 25% state tax credit (max $5,000), plus cash rebates from NY-Sun.
Florida: No sales tax, no property tax, and full net metering in most areas.
👉 If you’re not in these states, don’t worry. Many others have their own rebates—just check your state’s energy office, call a local solar installer, or visit Affordable Solar for updated 2025 programs.
🏢 3. For Businesses – Even Bigger Savings
If you own a business, the government is basically handing out incentives:
The same 30% Federal ITC
Accelerated depreciation (MACRS) that slashes your tax bill
State and utility grants
📊 Example: A client I spoke to installed a $100K system. They saved $30K through ITC and another $25K from depreciation. That’s more than half paid for.
♻️ 4. Clean Energy Credits and SRECs
Some states have Solar Renewable Energy Credits (SRECs) that let you sell extra credits for every megawatt-hour your panels generate. It’s like getting a bonus paycheck just for making clean energy.
🔋 5. Battery Incentives Are Growing Fast
More people are adding batteries, and for good reason—outages are becoming normal.
Federal credits now cover solar-charged batteries
States like California and Massachusetts are literally handing out cash rebates if you install one
This is especially smart if you live in an area with blackouts or crazy high evening rates.
🌐 6. Net Metering – The Easiest Win
Net metering is my favorite hidden perk. Any extra power you don’t use goes back to the grid, and your utility credits your bill. In some states, you can even get a check at the end of the year if you produce more than you use.
📝 Real Questions People Ask Me
❓ Is the solar tax credit still a thing in 2025?
✅ Yep, 30% credit is alive and well.
❓ Can I stack federal and state programs?
✅ 100%. State rebates lower your upfront cost, and you still get the federal credit on the leftover amount.
❓ How do I know what’s available in my city?
✅ Best bet is to call a local installer. They live and breathe this stuff and usually know about little-known rebates nobody advertises.
💡 My Tips for Getting the Most Savings
Shop around—get at least 3 quotes
Stack every rebate and credit you can
Consider batteries to grab extra incentives
Don’t skip net metering—it’s free money
Apply early before funds dry up
🎯 Final Word – Don’t Wait
I’ve seen too many people kick this decision down the road and lose out. Between federal credits, state rebates, and utility payouts, you can knock tens of thousands off your install cost in 2025.
👉 If you’re even thinking about solar, get a quote now. The money won’t be around forever, and you’ll wish you had lock in your savings with the 2025 Solar Incentives & Tax Credits before they expire.