Solar Tax Credit 2025: What Bay Area Homeowners Need to Know Before Incentives Expire

Written By Metin Saglam

The solar industry is buzzing — not just because of cleaner energy, but because of regulatory changes and federal tax credit deadlines. Right now, homeowners can still take advantage of the 30% Federal Solar Investment Tax Credit (ITC), but this incentive is scheduled to step down after 2025.

At Ally Electric and Solar Inc. in Richmond, CA, we want to make sure Bay Area homeowners don’t miss out on savings. Here’s what you need to know — and why now is the best time to go solar.

What Is the Federal Solar Tax Credit?

  • The Solar Investment Tax Credit (ITC) lets homeowners deduct 30% of the cost of a solar system (including batteries) from their federal taxes.

  • For an average $20,000 system, that’s a $6,000 savings.

  • Applies to both solar panel systems and energy storage batteries like Tesla Powerwall, Enphase IQ, and FranklinWH.

What’s Changing After 2025?

  • The 30% tax credit ends after December 31, 2025 unless extended by Congress.

  • After that, the incentive is expected to drop to 0% for residential systems.

  • Businesses may still see reduced credits, but homeowners will lose out entirely.

This means that installing solar in 2025 could be your last chance to maximize savings.

California Policy Shifts to Watch

  • Net Energy Metering (NEM 3.0): Utility compensation for excess solar power has already been reduced, making batteries and self-consumption more important.

  • Time-of-Use Rates: PG&E and other California utilities are raising peak-hour electricity costs. Storing your own power is now the most cost-effective strategy.

  • State Rebates: Some Bay Area homeowners may qualify for battery incentives under the Self-Generation Incentive Program (SGIP).

What This Means for Bay Area Homeowners

  • Act before the deadline: Waiting until 2026 could cost you thousands.

  • Add a battery now: Systems with backup batteries qualify for the 30% ITC.

  • Plan for reliability: Solar + storage helps you avoid blackouts and high evening rates.

How Ally Electric and Solar Inc. Can Help

At Ally Electric and Solar Inc. (Richmond, CA), we’ve helped hundreds of Bay Area families make the switch to solar. Here’s how we can help you:

  • Free solar + battery consultation to calculate your savings.

  • Guidance on tax credit eligibility and paperwork.

  • Installations of Tesla, Enphase, and FranklinWH systems.

  • Main service panel upgrades to handle future EV charging needs.

  • Ongoing maintenance & support so your system keeps paying off.

Don’t miss out on the 30% Federal Solar Tax Credit — contact Ally Electric and Solar Inc. today and secure your installation before 2025 ends.

Call us at [Insert Number] or Request a free quote at info@allyelectricandsolar.com/TEL: 510.559.7700 or fill out the form below.


Metin Saglam
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