If you’re a California homeowner considering solar, the time to act is right now. A new proposal from House Republicans threatens to eliminate the 30% federal solar tax credit by the end of 2025 nearly a decade ahead of schedule.
This move could cost thousands of dollars for homeowners who delay. The average California solar system costs around $28,000. The current 30% tax credit saves you roughly $8,400 on that investment. If this credit disappears, so does that money, and it may never return.
What Just Happened?
On May 19, 2025, House Republicans introduced legislation to roll back several clean energy incentives passed under the Inflation Reduction Act, including the popular Investment Tax Credit (ITC) for residential solar. Under current law, this tax credit remains in place through 2032. If this new bill passes, it could end in just a few months, as early as December 31, 2025.
Why This Hits California Harder Than Any Other State
California is home to more solar households than any other state in the country. It’s also where electricity rates are rising faster than ever, with some utility customers now paying over 45 cents per kilowatt-hour during peak times.
If you live in California, the threat is even more urgent:
- Our homes consume more electricity, especially with HVAC, EVs, and pool equipment
- Our rates are among the highest in the nation, making solar ROI one of the best
- Our grid is more fragile, with blackouts and time-of-use surcharges becoming the norm
- The new NEM 3.0 policy has already cut the value of exported solar power. Removing the tax credit piles on even more financial pressure
In other words, you are about to lose one of the last remaining solar incentives, and if you wait until fall or winter, it may already be too late to install in time.
What Could This Cost You?
If you wait and the bill passes:
- You could lose up to $8,000 in tax incentives
- The cost of panels and batteries could rise due to demand spikes before the deadline
- Installers may be booked out months in advance, making it impossible to install before 2025 ends
- You may have to wait years before any replacement incentive program is created—if at all
Let’s break it down:
| System Size | Average Price | Tax Credit You’d Lose |
|---|---|---|
| 6 kW | $18,000 | $5,400 |
| 8 kW | $24,000 | $7,200 |
| 10 kW | $30,000 | $9,000 |
The longer you wait, the greater the risk.
What You Should Do Right Now
1. Lock in your solar tax credit before it disappears
Even if this bill is still under debate, the writing is on the wall. Start your solar project as soon as possible to ensure installation before the proposed cutoff.
2. Get a fast, obligation-free solar quote
At NRG Clean Power, we’re helping California homeowners move quickly and confidently with our streamlined Quick Quote Tool. Just answer a few questions about your home, and we’ll give you a customized estimate—no sales pressure, just honest numbers.
3. Schedule your site visit ASAP
Our team is now prioritizing tax-credit-sensitive installations and coordinating with our partners to help homeowners get installed before the end of 2025.
Why Choose NRG Clean Power?
- We’re a California-based solar and roofing company with 15+ years of experience and thousands of installs completed statewide
- We offer top-tier solar panels and batteries at highly competitive prices
- We handle the entire process site audit, design, permitting, installation, and PTO
And most importantly, we will make sure you do not miss out on this opportunity.
Final Thoughts: The Clock Is Ticking
Whether you live in Los Angeles, San Diego, the Bay Area, or anywhere in between, the impact of this policy change will be felt across California. Waiting to go solar could cost you more than you think not just financially, but in lost energy security and sustainability goals.
Get ahead of the curve. Protect your home. Secure your savings.
