A Big Change Could Be Coming for Solar Incentives—Here’s What Bay Area Homeowners Need to Know
If you’re thinking about going solar or adding battery storage, you’ve likely heard of the 30% Federal Solar Investment Tax Credit (ITC)—the incentive that’s helped millions of Americans lower the cost of their solar systems.
But a proposed bill now circulating in Congress will eliminate that credit for residential homeowners after December 31, 2025. That means thousands in potential savings may vanish overnight for those who delay.
⚠️ The catch? You must be fully installed and receive Permission to Operate (PTO) by the end of 2025 to qualify.
What’s in the Proposed Legislation?
The current bill proposes:
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Ending the 30% Residential ITC (Section 25D) after 12/31/25
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Phasing down commercial solar incentives through 2030
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Reducing or removing other clean energy rebates (like for heat pumps and EV chargers)
In the past, solar tax credits were extended with bipartisan support. But this time, the political landscape has changed—and the outlook is uncertain.
Why This Matters for Bay Area Homeowners
If you live in the PG&E service area, solar isn’t just a smart investment—it’s a necessary shield against rising utility costs. But with longer permit timelines and limited installation availability, waiting until fall or winter 2025 could be too late.
Key risks include:
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Permit backlogs in cities and counties
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Inspection delays due to staffing shortages
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PG&E PTO bottlenecks, especially in Q4 2025
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Installer availability tightening as demand spikes
What You Stand to Lose by Waiting
Let’s break it down:
| Item | Install in 2025 | Install in 2026 (if credit ends) |
|---|---|---|
| System Cost | $30,000 | $30,000 |
| 30% Tax Credit Savings | $9,000 | $0 |
| Total Cost After Credit | $21,000 | $30,000 |
That’s a $9,000 loss simply for missing the deadline.
And that doesn’t factor in expected price increases in 2026 due to tariffs, inflation, or equipment shortages.
What You Can Do Now
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Start your solar planning early
Don’t wait for confirmation of the legislation. Be proactive to avoid last-minute chaos. -
Get a permit-ready design in motion
This ensures you’re ahead of the crowd when it comes to installation timelines. -
Lock in your 30% tax credit
The only way to guarantee your savings is to complete your install in 2025.
The Bottom Line
There’s still time to take advantage of the full 30% federal tax credit—but the window is closing fast. With legislation hanging in the balance and timelines getting longer, starting early is your best chance to lock in savings and avoid missing out.
Let’s secure your system before the deadline.
👉 Request Your Free Solar + Battery Quote Now (click here or fill out the form below)