Is It Still Worth Going Solar in California in 2025? Here’s What Homeowners Need to Know

 

Yes, going Solar in California in 2025 is still a smart investment. Despite changes to Net Metering (NEM 3.0), ever-increasing utility rates, and the expiring 30% federal tax credit, 2025 is a crucial year for homeowners to act. By combining Solar panels with Battery storage, Californians can maximize savings, secure backup power, reduce their long-term energy bills, and protect their family from any potential power outages.

The Enduring Value of Solar + Battery storage in 2025

Rising utility rates in  Bay Area, California.

California’s electricity prices are among the highest in the country, with residential rates often exceeding $0.30 per kWh*. Over the last decade, rates have increased by more than 70%*, with further hikes expected. Going solar locks in your energy rate, protecting you from unpredictable utility cost increases.

Is the 30% Federal Solar Tax Credit still available in 2025?

Yes. Homeowners installing a solar or battery system by December 31, 2025, can still claim the 30% Investment Tax Credit (ITC)* on the total cost of their system.

Example(Approximate Numbers):

• Total system cost: $25,000*
• 30% federal tax credit: $7,500* (If Claimed)
• Tax savings: Direct reduction in your tax liability.

After Dec 31, 2025, the ITC steps down:

• 2026: Drops to 26%*
• 2033: Down to 22%*
• 2035: Phases out completely*

What happens If you wait?

Delaying your installation may cost you:

• Loss of the 30% federal tax credit.
• Higher installation costs due to inflation.
• Fewer rebates. (SGIP funding is limited.)
• Exposure to rising utility rates.
• Increased competition and installer backlogs in late 2025.

What Is NEM 3.0 and how does It affect Solar payback?

What changed?

• Under Net Energy Metering 3.0, homeowners receive lower credits for solar energy sent to the grid, much closer to wholesale rates instead of retail.

Why It still works:

• With a solar battery, homeowners can store excess power instead of exporting it.
• Use stored energy during peak hours to avoid high utility rates.
• Reduces grid dependence, even under new net metering policies.

Benefits of adding Battery Storage in 2025

Why more Californians are pairing Solar with Batteries:

1. Blackout protection: Frequent wildfires and grid instability lead to power outages. A battery storage keeps your lights on when the grid goes down.
2. Time-of-Use Optimization: Charge your battery when electricity is cheap. Use it when it’s expensive.
3. SGIP rebates: The Self-Generation Incentive Program provides thousands in rebates for battery installations, especially in high-risk or income-qualified areas.
4. Increased Energy Independence: Use more of your own power instead of buying it from the grid.

Does Solar Increase Home Value?

Yes. Homes with solar tend to sell faster.* According to multiple studies:

• Homes with solar can sell for $15,000 to $25,000 more.*
• Buyers prioritize energy-efficient homes in high-cost areas like California.

Solar’s Environmental & social benefits

Going solar isn’t just smart for your wallet, it’s smart for the planet.

• Reduces your carbon footprint.
• Supports California’s clean energy goals.
• Helps with energy independence.
• Supports local green jobs and economic growth.

Is It still worth going Solar in 2025?

• Yes. In California, installing solar panels (especially with a battery) in 2025 still provides major financial, environmental, and energy independence benefits. Rising utility rates and the upcoming expiration of the 30% federal tax credit make 2025 a smart time to act.

When does the 30% federal solar tax credit expire?

• The 30% federal Investment Tax Credit (ITC) is available through December 31, 2025. After that, it will decrease to 26% in 2026, drop further in the following years, and may phase out completely for residential systems.

What is NEM 3.0 and how does it affect solar savings?

• NEM 3.0, California’s updated net metering policy, reduces how much you earn for sending excess electricity back to the grid. This makes solar plus battery storage more attractive, as it allows you to store energy and use it during peak pricing times.

Does battery storage really increase savings?

• Yes. Adding a battery helps maximize your use of solar energy, reduces reliance on the grid, and lets you avoid high Time-of-Use (TOU) rates. It also provides backup power during blackouts and enhances your return on investment.

How much can a homeowner in California save with solar and a battery?

• Savings vary, but the average 25-year savings range between $60,000 and $95,000, depending on system size and energy use. 

Is solar still worth it in California in 2025?

• Yes. Even with NEM 3.0 changes, solar is still financially beneficial, especially when paired with battery storage. Homeowners can lower bills, gain energy independence, and qualify for the 30% federal tax credit if installed by the end of 2025.

What happens if I wait until after 2025 to install solar?

Delaying installation can mean:

• Losing part of the federal tax credit
• Paying more due to inflation and demand
• Missing out on rebate programs like SGIP
• Remaining exposed to rising utility rates

Are SGIP rebates still available for batteries in 2025?

• Yes. California’s Self-Generation Incentive Program (SGIP) still offers rebates in 2025, especially for homes in fire-risk zones or with medical baseline needs. Funding is limited, so early action is recommended.

Can Solar panels increase home value?

• Yes. Studies show homes with solar sell for $15,000 to $25,000 more*, especially in areas with high electricity costs like California. Buyers are also drawn to sustainable, energy-efficient homes.

Can I use Solar during a power outage?

• Only if you have battery storage system*. Standard grid-tied solar systems shut off during outages. A solar battery backup allows your home to stay powered during blackouts.

Do Solar panels and Batteries come with warranties?

• Yes. Most panels come with 25-year warranties*, and batteries are covered for 10 to 15 years, depending on the brand and usage.

Will Installing Solar eliminate my electric bill?

Not entirely. While it greatly reduces your bill, you’ll still pay a small monthly service charge to your utility. A well-sized system can offset most or all of your energy charges.

How long does it take to go solar in California?

Typically, 4 to 8 weeks from the site visit to installation and utility approval. Start early to secure your 2025 tax credit before the deadline.

What’s the difference between buying and leasing solar panels?

Buying your solar system offers the best ROI and eligibility for tax credits. Leasing may reduce upfront costs but often results in smaller long-term savings and no tax credit benefit.

Are there restrictions from HOAs on solar installations?

No. California law (Civil Code §714) protects your right to install solar panels. HOAs cannot prevent installation, though they may request reasonable aesthetic adjustments.

Conclusion: Why Work with Nabu Energy?

At Nabu Energy, we believe in educating homeowners, not pressuring them. We’re a trusted, commission-free solar installation company serving homeowners across California.

Here’s what we offer:

• Custom Solar design + Battery.
• Top-tier Solar technology and transparent pricing.
• Zero sales pressure ever.
• End-to-end support for Incentives and rebates.

Limited-Time Offer.

Bay Area, California : Schedule your solar consultation today and take the first step toward energy freedom with Nabu Energ and lock in your 30% Federal Tax Credit  with Zero sales commissions.