2025 Federal and State Solar Incentives: What U.S.A Homeowners Can Still Claim

If you’ve been thinking about going solar, 2025 is a crucial year to take advantage of some of the best financial incentives available. Federal and state programs are designed to make solar more affordable, and they’re evolving, so knowing what’s available right now can save you thousands.

In this guide, we’ll break down the updated federal solar tax credits and highlight some top state-level incentives for homeowners. Plus, we’ll walk you through how to claim these incentives so you don’t miss out.

The Federal Investment Tax Credit (ITC) Update for 2025

The Federal ITC remains the largest solar incentive available nationwide. For 2025, the credit stands at 30% of the total cost of your solar system (including equipment and installation).

This 30% tax credit applies to both residential and commercial systems.
The ITC is set to stay at this level through 2032, making now an excellent time to invest.

How to claim: You simply file IRS Form 5695 with your federal tax return. If you install your solar system by the end of 2025, you can claim the full 30% credit.

Spotlight on Top State-Level Solar Incentives

California:
- Self-Generation Incentive Program (SGIP): Offers rebates for solar plus energy storage systems.
- California Solar Initiative (CSI): Cash rebates for solar system installations on homes and businesses.
New York:
- NY-Sun Program: Provides cash rebates based on system size and location.
- Green Jobs – Green New York: Offers incentives and financing assistance for energy efficiency and solar.
Texas:
- Property Tax Exemption: Ensures installing solar won’t increase your property taxes.
- Oncor Solar Rebate: Available in some utility territories, providing rebates for solar installation.
Massachusetts:
- SMART Program (Solar Massachusetts Renewable Target): Performance-based incentives are paid monthly based on solar production.
- Mass Solar Loan: Low-interest financing for solar installations.
Florida:
- Property Tax Exemption: Solar installations are exempt from property tax increases.
- Solar Energy System Incentives: Various utility-specific rebates and net metering policies.

Additional Incentives to Watch in 2025

Net Metering Credits: Many states offer net metering policies allowing homeowners to earn credits for excess energy sent back to the grid, effectively lowering electricity bills.
Renewable Energy Certificates (RECs): In some states, homeowners can earn and sell RECs, generating additional income from their solar systems.
PACE Financing (Property Assessed Clean Energy): Allows homeowners to finance solar through property tax assessments, spreading costs over time.

Time-Sensitive: Why 2025 Matters

With incentives often linked to legislative cycles and funding availability, it’s important to act before the end of 2025 to secure the best benefits.

Some states may adjust or phase out rebates as solar adoption increases.
Federal tax credits require system installation to qualify, so delays can mean missed savings.

Simple Steps to Claim Your Solar Incentives

Research available federal and state incentives in your location.
Choose a qualified installer who can help ensure your system meets eligibility requirements.
Keep detailed records of your purchase and installation costs.
File the necessary tax forms, like IRS Form 5695 for the federal ITC.
Apply for state rebates as directed by your local program (some require separate applications).

Make Solar Affordable and Simple with Lucent Energy

Finding solar incentives can be complex, but it doesn’t have to be. Lucent Energy experts specialize in helping homeowners maximize their savings by combining federal and state incentives with the right solar system design.

Ready to claim your 2025 solar savings? Contact us today to get started!