If you’ve been thinking about going solar for a while, now is the time to take the plunge! There are excellent solar incentives available for residential and commercial solar installation in California in 2025, including property tax exemptions, rebate programs, and the 30% federal solar tax credit.
Six Rivers Solar has been the North Coast’s leader in renewable energy since 1980 and we can help you maximize your savings with solar incentives. Read on to learn more about the best solar rebates and incentives in 2025.
Residential Solar Incentives
Federal Solar Tax Credit
The federal solar tax credit goes by many names: the Residential Clean Energy Credit, the solar panel tax credit, and the Inflation Reduction Act (IRA) solar tax credit, to name a few. But no matter what you call it, the federal solar tax credit is the best solar incentive available in 2025. The credit is worth 30% of your total solar installation costs, including solar battery storage. It reduces what you owe when you file your federal income taxes for the year you install your solar system. In most cases, the solar panel tax credit translates into thousands of dollars of savings.
Self-Generation Incentive Program (SGIP)
The SGIP rebate program offers incentives for solar battery installation. You do not have to install solar panels with your battery to qualify for SGIP rebates—solar batteries can be installed at non-solar homes and recharged from the electric grid. However, installing battery storage without solar panels is not recommended in California. We have some of the highest electricity rates in the country, and charging a battery from the grid is expensive. Charging from solar panels, on the other hand, is free.
Any residential customer of a participating utility is eligible for an SGIP rebate of approximately $250/kilowatt-hour, which means the rebate covers about 25% of the cost of an average solar battery system. Income-eligible homeowners, those living in high-risk fire zones, and those who depend on electricity for certain medical equipment are eligible for higher rebate amounts that cover around 85-100% of the cost of a solar battery installation.
Net Energy Metering (NEM)
Net Energy Metering (NEM), also known as net metering, is a solar incentive system that allows solar customers to trade electricity with their utility companies. During peak sunlight hours, solar panels generate more electricity than the average home needs. Net metering allows you to sell the excess energy to the grid in exchange for credits, which can be used to pay for the electricity you buy from the grid when your solar panels are not meeting your needs—at night, for example.
In 2023, California introduced a new version of its net metering policy, known as NEM 3.0, which is now in effect. Under the new NEM 3.0 laws, solar customers are not compensated at the full retail rate for the electricity they export to the grid. Instead, they’re credited at significantly lower rates that vary depending on the time of day. This makes battery storage more valuable than ever. If you install a solar battery, you can store your excess power and use it yourself instead of sending it to the grid for a reduced rate.
Commercial Solar Incentives
Investment Tax Credit (ITC)
The Investment Tax Credit reduces your federal income tax liability by 30% of your commercial solar installation costs. The ITC is the best commercial solar incentive available and makes solar panels significantly more affordable for California businesses.
Investment Tax Credit – Direct Pay for Nonprofits
Most tax-exempt organizations can take advantage of the ITC through a new direct pay option. With direct pay, your organization can receive a direct payment worth 30% of your solar installation costs in place of the tax credit. Non-profit organizations, states, local governments, and Tribal Nations can claim the direct pay solar tax credit in 2025.
Go Solar with the Best Solar Company on the North Coast
Six Rivers Solar is here to help make your solar installation as affordable as possible with flexible financing options, solar rebates, and incentives. We are a local solar panel company that is deeply invested in the community we serve and committed to making solar accessible to North Coast homeowners and businesses. Reach out to chat with us about your property’s solar viability, and find out how much you could save with solar!