As utility costs continue to rise and climate change demands urgent action, solar energy has become an increasingly attractive option for homeowners across San Diego. One of the biggest motivators? The
Federal Solar Investment Tax Credit (ITC)—a valuable incentive offering homeowners the chance to offset 30% of their solar installation costs through a dollar-for-dollar reduction on their federal taxes.
However, this generous 30% tax credit is now being eliminated
after 2025, and San Diego homeowners stand to lose thousands in potential savings if they wait too long to act. At
Your Energy Pros, we specialize in helping families and businesses throughout the region navigate the transition to energy independence—without the confusion.
Let’s break down what the ITC is, what changes are coming, and how you can lock in your full incentive before the deadline.
What Is the Federal Solar Tax Credit?
The Federal Solar Investment Tax Credit (ITC) allows residential and commercial property owners to deduct
30% of the cost of a solar energy system from their federal taxes. This credit applies to solar panel systems, battery storage (when charged with solar), installation costs, and related equipment.
Here’s a quick example:
- Total solar system cost: $20,000
- ITC at 30%: $6,000 tax credit
You receive that full credit directly off your federal tax bill. If your tax liability is lower than the credit, you can roll the balance forward to future years.
What Expenses Are Eligible?
- Solar panels and inverters
- Mounting and racking systems
- Energy storage batteries
- Labor and permitting
- Sales tax on eligible equipment
What’s Changing After 2025?
The solar industry is now facing a dramatic setback. Based on the passage of the One Big Beautiful Bill Act, the 30% federal investment tax credit (ITC) for residential solar energy systems is being eliminated by the end of 2025 - almost a decade ahead of its scheduled phase-out. This is a serious development that will impact both current and future residential solar adopters. And the Act did not stop there. Commercial Solar is also being phased out within the next two years.
This is why it is so urgent that residents of San Diego get solar now while they're still able to get that 30% incentive by the end of the year. The residential solar tax credit has played a critical role in making solar energy more accessible and affordable. It reduces the upfront cost of installation, speeds up return on investment, and supports thousands of clean energy jobs across the country.
Why This Matters in San Diego
San Diego residents face some of the
highest utility rates in the nation. According to the California Public Utilities Commission (CPUC),
SDG&E rates have increased more than 15% since 2022, with further hikes on the horizon. Pair that with growing demand for energy due to EVs, home electrification, and extreme weather, and it’s clear that locking in long-term savings is a smart financial move.
Solar energy allows you to reduce or eliminate your electricity bills, and with battery storage, you can keep your home powered during outages. But delaying installation means:
- Longer wait times as more homeowners rush to qualify
- Missed savings from lost tax credits
- Fewer system options due to supply chain constraints
The bottom line:
now is the time to plan.
How the ITC Works With Other Incentives
San Diego homeowners may also qualify for additional savings when they combine the federal ITC with:
- California Self-Generation Incentive Program (SGIP) for battery storage
- SDG&E rebates and local utility incentives
- California's property tax exclusion under Section 73, which prevents solar improvements from increasing your home's assessed value
- Time-of-use (TOU) savings when paired with solar and battery systems
Your Energy Pros evaluates
every incentive you qualify for during our Free Energy Audit to ensure you don’t leave money on the table.
Why Permitting and Planning Ahead Matters
To be eligible for the 30% ITC, your solar system must be
installed and operational by December 31, 2025. This involves more than just buying the equipment:
- Permitting and approvals from your local municipality
- Design and engineering reviews
- Interconnection with SDG&E
- Installation scheduling and inspections
These steps can take several months, and as the deadline nears,
demand will spike, stretching out project timelines. Don’t wait until next fall to start your process—get ahead now.
How Your Energy Pros Simplifies the Process
At Your Energy Pros, we provide a unique,
engineering-first, vendor-neutral approach to going solar. Here’s how we help you maximize your savings without stress:
1. Free Energy Audit / Assessment
We begin every project with a
comprehensive audit / assessment of your home or business to:
- Assess your energy use and utility bills
- Evaluate HVAC systems, appliances, insulation, and roof condition
- Create a custom Energy Use Profile
- Identify areas to increase efficiency before going solar
2. Tailored System Design
Using the audit findings, we create a
custom solar and energy strategy that matches your current and future needs (EVs, home additions, pools, etc.). We’ll recommend:
- System size and configuration
- Battery backup options
- Smart home integration
- Roof vs. ground-mount vs. carport systems
3. Independent, Technology-Neutral Guidance
We don’t sell or push any one product. Instead, we recommend
the best fit for your property, using trusted brands and vetted local installers.
4. Project Management
We handle:
- Support with HOA applications when applicable
- Contractor coordination
- Oversight on installation adherence to planned system designs
- Installation quality oversight
- Problem resolution
- Long term follow-up
What You Should Do Now
Don’t let deadlines or confusion keep you from saving thousands.
Here’s your 3-step action plan:
- Schedule a Free Energy Audit / Assessment with Your Energy Pros today.
- Review your energy use and system design with one of our engineers.
- Lock in your 30% ITC before the end-of-year deadline crunch.
With our expert guidance and turnkey service, you’ll get the best return on your investment while ensuring your solar project is completed on time.
Final Thoughts
The 30% Federal Solar Tax Credit is one of the strongest incentives for clean energy adoption in the U.S. – and it’s going away soon. For homeowners in the greater San Diego area,
acting now means keeping more money in your pocket and creating a more energy-resilient home.
Don’t lose out on thousands in tax credits by waiting too long. Let Your Energy Pros be your guide to a smarter, greener, and more cost-effective future.
Ready to Start?
Schedule your Free Energy Audit / Assessment today and take the first step toward energy independence.
Your Energy Pros is proudly based in La Mesa, serving San Diego County with engineering expertise, transparency, and a commitment to helping homeowners make informed, sustainable decisions.
🕒 The Clock Is Ticking on the 30% Solar Tax Credit
Don’t let this opportunity slip away. With the Federal Solar Tax Credit potentially ending soon, now is the smartest time to act.
✅ No pressure. No sales tactics. Just expert advice.
📍 Serving San Diego homeowners with integrity from our office in La Mesa.
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Let’s make solar simple—and make sure you don’t leave money on the table.
