On top of that, the 3CE battery rebate gives homeowners in Santa Cruz and Monterey counties another way to save. And by adding a storage system like the FranklinWH, Enphase IQ, or Tesla Powerwall 3 battery, you can store your excess solar power and use it when rates are highest—cutting your reliance on PG&E’s costly peak rates.
At Allterra Solar, we’re here to help you maximize these California solar incentives and boost your savings. Our team will guide you through the process from start to finish, ensuring you can take advantage of all the available solar incentives.
Ready to see how much you could save? Get a free quote today and start planning your solar project!
Understanding the 30% Federal Solar Tax Credit 2025
The federal solar credit is one of the biggest California solar incentives available to Santa Cruz and Monterey County households. This tax credit allows you to claim 30% of your total solar system cost—including panels and battery storage like the Enphase IQ battery—as a dollar-for-dollar reduction on your federal taxes. That means a direct cut to what you owe the IRS, not just a deduction.
Who Qualifies for the Solar Tax Credit 2025?
- Available for both solar panel systems and solar battery storage
- Applies to primary and secondary homes in the U.S.
- All the costs related to installing a solar system, including labor, permitting, and solar equipment
- You must have a federal tax liability to benefit from the credit. If your tax liability is lower than the credit amount, you can carry over the remaining credit to future tax years.
- You must install the solar system in 2025 to claim it on your 2025 taxes using IRS form 5695
We recommend speaking with a tax expert to ensure you qualify for the solar tax credit 2025.
How Much Can You Save?
This incentive varies depending on the cost of your solar energy system:
- A $30,000 solar and battery system could earn you a $9,000 tax credit
- Combine it with the 3CE battery rebate and possibly the Self Generation Incentive Program(SGIP) for even bigger savings.
- Any rebate amount received is deducted from the total project cost prior to calculating the 30% federal tax credit
The 3CE Battery Rebate for Santa Cruz and Monterey Residents
Central Coast Community Energy (3CE) offers a Residential Battery Rebate Program to help customers add energy storage to their homes, making clean energy more reliable and accessible. This program provides financial incentives for installing battery storage systems, reducing costs while increasing energy independence.
What Is the 3CE Battery Rebate?
The program offers rebates for eligible battery installations. Key details include:
Rebate Amount: $300 per kilowatt-hour (kWh) of storage capacity. For example, with a 13 kWh battery, you can qualify for a $3,900 rebate. This rebate is capped at 26 kWh.
Battery Specifications: Must have a capacity between 5 kWh and 26 kWh and be on the California Self-Generation Incentive Program (SGIP) Verified Equipment List. All major battery manufacturers and models, such as the Enphase IQ, FranklinWH, and Tesla Powerwall 3 batteries, are eligible.
Programming: The system must be set to discharge at least 50% of its capacity daily during peak hours (4 PM to 9 PM). These discharge requirements are suspended during power outages so you can use the entire capacity for backup power.
Who Qualifies for the 3CE Battery Rebate?
To qualify, applicants must be 3CE customers, which includes residents of Santa Cruz and Monterey counties. The battery must be permanently installed on the applicant’s primary residence, so portable batteries do not qualify.
As a locally-owned company based in Santa Cruz, Allterra Solar technicians are experienced in using the 3CE battery rebates. Our technicians make sure your installation meets all requirements, delivering both savings and top-tier customer service.
Benefits of Combining the 3CE Battery Rebate with Solar
Pairing a battery with solar makes it possible to store the excess energy you generate during the day and use it during peak PG&E Time-of-Use (TOU) hours when electricity costs more.
This reduces your reliance on PG&E while maximizing solar savings.
Battery storage also provides backup power during outages, increasing energy security. With both the 3CE rebate and the 30% federal solar credit, the cost of adding a battery is significantly reduced, making it a smart investment if you want to cut your energy costs and gain energy independence.
How to Claim the 3CE Battery Rebate
- Verify Eligibility: All 3CE customers are eligible for the battery rebate program.
- Choose an Approved Installer: Work with a licensed California solar install professional like the team at Allterra Solar.
- Install the Battery System: We can ensure your system meets all technical and programming requirements for your 3CE battery rebate.
- Enroll in Load-Shift Tracking: Sign up for load-shift tracking and agree to allow 3CE to monitor your battery usage.
- Submit Application: Complete and submit the rebate application with all required paperwork. Allterra Solar is available to help with any questions or documentation.
Combining Solar Tax Credit 2025 and the 3CE Battery Rebate
With the 30% federal solar credit and the 3CE battery rebate, you can significantly lower the cost of installing solar and battery storage. In some cases, Central Coast residents are eligible for SGIP funding as well. If you’re in Santa Cruz or Monterey Counties, you can stack two or three of these solar incentives to maximize your savings and make your system more affordable.
At Allterra Solar, we help you navigate California solar incentives and ensure you can claim every available benefit —including the Tesla Powerwall rebate through 3CE—so you get the best return on your investment. We serve the Central Coast, including Santa Cruz and Monterey Counties.
How California Solar Incentives Work Together
Combining the 30% federal solar credit with the 3CE battery rebate and possibly the SGIP can lead to significant savings on your solar and battery storage installation. Here’s how these incentives can work together:
If you install a solar system for $17,000 and add a Tesla Powerwall for $17,000, the 30% federal tax credit would save you $10,200 on the entire system. Also, you could receive up to $3,900 through the Tesla Powerwall rebate from 3CE, further reducing the total cost.
By adding battery storage, you can maximize solar self-consumption. This approach allows you to store excess energy you produce during the day and use it during PG&E’s peak rates.
At Allterra Solar, we design systems that help you take full advantage of these California battery incentives, ensuring you get the best possible return on investment while protecting the environment.
Take Advantage of California Solar Incentives Before They Expire
The 30% federal solar tax credit and 3CE battery rebate are both currently available, but they won’t last forever. Act quickly to secure these savings before funding limits or deadlines change.
Get a custom quote today from Allterra Solar and see how much you could save!
