If the 2025 solar universe had a soundtrack, it would be equal parts construction noise, utility rate alerts, and the gentle hum of a battery kicking on right when the grid decides it’s had enough.

At the federal level, the messaging has been clear: encourage more domestic oil-and-gas exploration and production, including on federal lands and waters. Meanwhile, the solar market did its own thing—because the sun doesn’t care about politics. Solar production kept climbing in 2025, with U.S. solar generation (utility-scale + small-scale/rooftop) totaling 342,004 GWh through October—about 9% of all U.S. electricity generated year-to date.

 Team Sandbar Solar in front of their off-grid headquarters on the west side of Santa Cruz. 

Now add the local reality: the week of Christmas reminded many people what “grid dependence” actually feels like. A powerful storm created widespread outages across PG&E territory on Christmas Eve and Christmas Day, with PG&E describing it as the most systemwide power outages (and the strongest wind gusts) ever recorded in its service area for those days. On the Central Coast, more than 35,000 residents were without power on Christmas morning. And on the Monterey Peninsula, Carmel-by-the-Sea had multiple power lines snap during the storm—leaving plenty of residents huddled around candles.

So yes, solar is growing fast, but grid reliability is proving less and less reliable.

Sandbar’s Director of Construction, Liam Ryan, is seen explaining the intricacies of a robust microgrid in the Santa Cruz Mountains. 

You may have heard, “The solar tax credit is over.” But it’s not. There is still a clear path for you to save up to 30% on your solar & battery project in 2026. Let’s walk you through it.

Under the One Big Beautiful Bill changes summarized by the IRS, the Residential Clean Energy Credit (25D) is not allowed for expenditures made after December 31, 2025.

That’s the bummer news. But it’s non-consequential because of the opportunity to go solar under a creative, legitimate structure that can cover up to 30% of your project cost.

Homeowners aren’t giving up on solar. They’re getting more thoughtful about how they buy it—and they’re pairing it with storage more often, because energy independence from the grid isn’t a luxury anymore. It’s a strategy.

Inverters and batteries are becoming more common as extreme weather events become more frequent.  

What homeowners are doing next

  1. They’re sizing for resilience, not just savings

    Solar is great for lowering bills. Batteries are what keep your fridge, Wi-Fi, lights, and essentials running when the neighborhood goes dark. After a Christmas-week outage, most people don’t ask, “How green is my home?” They ask, “How quickly can I get backup?”
  2. They’re using a structure that can still capture incentive value

    Here’s the core of our new Prepaid Lease option:

    While the residential tax credit ended at the end of 2025, specific commercial incentives can still apply when a commercial entity owns the system. In those cases, the system owner may be able to claim the credit and pass the value of the project price to you.

    Important: This is not a “monthly payment for 25 years” lease.
    This is a prepaid structure: you pay during design and construction through four milestone payments, and then there are no monthly payments after installation.
  3. They’re asking about “getting paid for the battery” (VPPs)
    Some batteries can participate in Virtual Power Plant programs that support the grid during peak events. The details vary by program and utility territory, but the idea is simple: your battery can occasionally help during high-demand moments, and there can be compensation tied to that.

    The lease details (kept simple)
  • Term: 25 years (solar), 10 years (battery).
  • After the term: Removal upon request or buyout at fair market value.
  • Buyout option: After 6 years, you can request to buy the system; if there’s a
    disagreement, a third-party appraisal determines fair market value.
  • Service/labor: During the lease term, the system owner covers essential labor for
    repairs (excluding homeowner negligence), even when something falls outside
    typical warranty coverage.
  • Selling your home: The lease can be transferred to the buyer with a simple form
    with no transfer fee.

    Bottom line:

    The residential tax credit is over, but the commercial tax credit is alive and well for another 2 years – Don’t miss this! Solar is still growing fast. And after watching communities lose power during the holidays, more homeowners are deciding they’d rather control their energy than gamble on the grid.
With PG&E rates continuing to climb, more and more people are realizing the benefits of controlling their own energy destiny. 

If you’re curious, Sandbar Solar & Electric can run the numbers and show the comparison between a prepaid PPA and buying the system outright. No pressure, just honest insights to help you make an informed decision. For your free solar assessment, call 831-469-8888 or email contact@sandbarsc.com.