2025 Solar Incentives Slashing Your Energy Bills Drastically
Types of Solar Incentives Available
The primary types of solar incentives include tax credits, rebates, and net metering. The federal solar tax credit, also known as the Investment Tax Credit (ITC), currently allows you to deduct 26% of the cost of installing a solar energy system from your federal taxes. This percentage is expected to decrease in the coming years, so acting sooner rather than later could maximize your savings1.
State and local rebates can further reduce the upfront cost of solar panels. These vary significantly depending on your location, with some states offering substantial financial incentives. Additionally, net metering policies enable you to sell excess energy generated by your solar panels back to the grid, effectively turning your electricity meter backward and lowering your utility bills even more2.