Even though the traditional homeowner tax credit (known as the 25D tax credit) will expire at the end of 2025, tax credits and incentives are still available under the 48E Clean Energy Investment Tax Credit. And thanks to the Baker Home Energy, homeowners can still enjoy the financial benefits of solar and take advantage of the tax credit
The 25D Credit Is Ending, But Solar Savings Aren’t
For years, homeowners who purchased their solar systems could claim 30% of the cost as a federal tax credit — a huge incentive that helped make solar more affordable across California.
That credit, called Section 25D, officially ends on December 31, 2025. While that means homeowners can no longer claim the 30% credit directly, it doesn’t mean solar incentives are going away. In fact, new federal programs are opening the door to even more flexible ways to save.
The Way to Benefit: The 48E Clean Energy Investment Credit
The 48E Clean Energy Investment Tax Credit is designed to keep supporting solar and battery adoption — but instead of applying to individual homeowners, it applies to companies that own and operate solar systems.
That’s where a Energy Service Agreement (ESA) from Baker comes in.
When you choose this option from Baker Home Energy, you can power your home with clean, reliable solar energy — with no upfront cost, no maintenance worries, and a predictable monthly payment that’s often lower than your current electric bill. An ESA can be a monthly Power Purchase Agreement (PPA) or a Prepaid Power Purchase Agreement (PPD). Prepaid options provide the savings right up front – no more waiting for the end of the year to get that money back on your taxes.
This works because when you opt for an ESA, the 48E incentive paperwork is handled for you with the savings passed along to you in the form of a more affordable monthly rate.
It’s a simple, stress-free way to enjoy the benefits of solar — and take advantage of federal incentives — even after the 25D homeowner credit ends.
Why This Matters for San Diego Homeowners
With electric rates continuing to climb, solar remains one of the smartest long-term decisions a homeowner can make. Whether your goal is to lower your bills, protect against outages with battery storage, or reduce your carbon footprint, federal incentives still make solar a great investment — just in a new way.
And since the 48E credit continues through 2029, there’s still plenty of time to take advantage.
The Baker Home Energy Difference
Baker Home Energy has been helping San Diegans take control of their home energy for more than 87 years. As a local, family-owned company, we combine decades of trusted service with today’s most advanced solar and battery technology.
Our ESA programs include:
- No upfront costs — start saving from day one
- Professional installation and maintenance — handled entirely by Baker
- Predictable monthly payments — often lower than your electric bill
- Peace of mind — with monitoring, maintenance, and warranty protection included
From solar panels to whole-home batteries and EV chargers, we help you make your home more energy independent — and more comfortable.
It’s Not Too Late to Save
Even though the homeowner tax credit is winding down, the opportunity to benefit from solar is far from over.
Through Baker’s ESA programs and the 48E incentive, homeowners can still lock in affordable, clean energy for years to come — without the upfront cost or the complexity of managing tax paperwork.
If you’ve been waiting for the right time to go solar, this is it. Let Baker Home Energy show you how easy it can be to power your home with confidence, comfort, and lasting savings.
Schedule your free solar consultation today — and see how you can still take advantage of federal solar incentives through 2027.
