How to Claim Solar Inverter Rebates and Tax Credits in 2025

Is 2025 the "last window period"? Why do we have to pay attention to inverter subsidies now?

In the past few years, solar subsidy policies have continued to promote the transformation of household energy, but by 2025, more and more users will begin to realize:

The subsidy will not disappear, but the threshold is being raised.

Many people only pay attention to "whether solar panels are subsidized", but ignore a key fact--The inverter is the core equipment that determines whether the system is compliant and whether it can successfully apply for tax credit.

Against the background of unstable power grid, continuous rise in electricity prices, and increasing frequency of power outages, more and more families hope to achieve energy self-sufficiency through solar systems. In 2025, the government's incentive policy is shifting from "make-up" to "compliance first, system integrity first".

In this article, you will get:

• A clear picture of the solar rebate and tax credit policy in 2025
• Whether and how solar inverters are included in the scope of subsidies
• Step-by-step application process + common reasons for rejection
• How to choose a "subsidy-friendly" inverter to avoid stepping on pits

I. Overview of Solar Rebates and Tax Credits in 2025

1. What are the mainstream solar energy incentive policies in 2025?

At present, the mainstream solar energy incentive policies mainly include three categories:

1. Federal Tax Credit (ITC)

   Suitable for residential and commercial solar systems

   The credit ratio is based on the total cost of the system

2. State/local government rebates

   Some states offer cash back or equipment discounts

   It is usually required that the equipment meets the certification list.

3. Incentive plan for public utility companies

   Guided by network connecting, cutting peaks and filling valleys, and energy storage scheduling

   Prefer the "inverter + energy storage" system

⚠ Note: There are obvious differences between the residential system and the commercial system in terms of subsidy structure and application process.

2. What will happen to these policies after 2025?

Judging from the trend:

• The subsidy ratio may be gradually reduced instead of being canceled one-size-fits-all.
• Equipment compliance and system integration requirements have been significantly improved.

More inclined to support:

• Can be connected to energy storage
• Inverter system with intelligent management capability

This is also why--

Starting from 2025, "what inverter to choose" is more important than "whether to install solar energy".

Ⅱ. Are solar inverters included in the subsidy?

1. Does the tax credit cover solar inverters?

Under most policy frameworks, solar inverters can usually be included in the scope of subsidy calculation as long as the following conditions are met:

• Grid-tie inverter (Grid-tie inverter)
• Hybrid inverter (Hybrid inverter, support battery)
• Off-network inverter (as part of the complete system)
• Integrated inverter with energy storage interface

The key is not the "inverter type", but--Does it belong to a new solar system that is compliant?

2. Which inverter types are more likely to be "100% compliant"?

The pass rate is higher in the following cases:

• Installed at the same time as the solar system
• Support mainstream certification (UL / IEC, etc.)
• Clearly marked for photovoltaic power generation or light storage system
• Can work with batteries and EMS

And special attention should be paid to the following situations:

• Replace the old inverter separately (usually it is difficult to apply separately)
• Unable to provide technical specifications or certification documents

III. The complete process of applying for solar inverter subsidies in 2025

1. Preparation list before application

Before submitting any application, please confirm the following points:

• Complete system configuration (component + inverter + necessary accessories)
• Clear inverter parameters (power, efficiency, certification)
• The installation time is in line with the policy cycle.
• Retain contracts, invoices and installation certificates

2. Specific application steps (residential / commercial)

General process for residential users:

1. Install the compliance system
2. Save all devices and installation files
3. Fill in the corresponding tax credit form when filing a tax return

Business system:

• A more detailed list of equipment is usually needed.
• It may involve depreciation and tax planning.

Common reasons for rejection:

• The equipment is not on the compliance list.
• The system is not newly installed
• The file information is incomplete.

3. Application cycle & arrival time of funds

• Tax credit: reflected in the tax filing cycle
• Cash rebate: usually arrives in a few weeks to months after the review.

The real savings are often reflected in the decline in the long-term operating costs of the system, not just a one-time return.

IV. How to choose a "subsidy-friendly" solar inverter?

1. Key factors affecting the success rate of subsidies

• Whether it has mainstream certification
• Whether energy storage and battery access are supported
• System compatibility and expansion capability
• Long-term stability and after-sales support

You can click here to learn more about various solar inverter solutions for different system types.

2. Why is hybrid inverter recommended in 2025?

• The policy is leaning towards "photovoltaic + energy storage"
• In the future, it will be easier to superimpose energy storage incentives.
• Improve the system's self-use rate and emergency response capability

Click to view off-grid inverter product details.

3. Common selection mistakes

• Just look at the price and ignore the authentication.
• The power of the inverter does not match the system.
• Mistakenly think that the off-network system cannot apply for any incentives

V. Frequently Asked Questions about Applying for Solar Tax Credit in 2025 FAQ

1. Can the subsidies for solar inverters and batteries be superimposed?

It's okay in many cases.

If your system is:

• The overall scheme of solar energy + battery + inverter
• The battery capacity and use meet the policy requirements.
• The inverter supports energy storage and acts as a core component of the system.

Then, inverters, batteries, solar panels and installation costs can usually be included in the tax credit base.

This is also the reason why more and more families choose the solar inverter with battery / hybrid inverter scheme in 2025.

2. What percentage of solar tax credit (ITC) can be obtained in 2025?

As of the current policy caliber, residential solar systems can still apply for up to 30% of the Investment Tax Credit (ITC) in 2025, provided that the system meets compliance requirements and is installed and put into use within the specified time.

It should be noted that ITC is a tax credit, not a cash back. It is deducted from your federal income tax in that year. If the tax amount of the current year is insufficient, it can usually be carried over to the following tax year.

This is also one of the reasons why 2025 is often called the "policy window period".

3. Does the solar tax credit include solar inverters?

Yes, it is included in most cases.

As long as the solar inverter is installed as part of the complete solar power generation system, its equipment and installation costs can usually be included in the tax credit, including:

• Grid-inverter
• Hybrid Inverter (Hybrid Inverter)
• Integrated inverter that supports energy storage
• New inverters with photovoltaic systems

VII. Plan in advance, don't wait for the policy window to really close.

In 2025, it is not the "end of subsidies", but the starting point of screening.

Users who can really get solar inverter rebates and tax credits are often not the fastest to act, but--

• ✔ Clear system planning
• ✔ Compliance with equipment selection
• ✔ Correct selection of inverter

If you are planning a solar energy or energy storage system, now is the best time to learn about the inverter scheme:

Contact us to get a quotation so that the subsidy can really fall into your system.