Going Solar in 2025: A Guide to Installing Commercial Solar in Southern California

Published: April 2025
By: REPOWER OC

Southern California continues to lead the nation in solar energy adoption—and in 2025, there's never been a better time for businesses to make the switch to solar. With rising utility rates, strong incentives, and the growing demand for sustainability from customers and stakeholders alike, installing commercial solar is more than an eco-friendly move—it's a strategic investment.

Here’s everything you need to know about going solar in SoCal this year.

🌞 Why Go Solar in Southern California?

1. Abundant Sunlight
   SoCal enjoys over 250 sunny days per year, making it one of the most solar-friendly regions in the U.S. The return on investment (ROI) for solar systems is significantly higher here than in cloudier regions.

2. High Utility Rates
   Commercial electricity rates in California remain among the highest in the country. A properly sized solar system can slash your electric bill by 60–90%, depending on system size and energy usage.

3. Grid Resilience & Reliability
   Power outages and Public Safety Power Shutoffs (PSPS) are still a concern. Pairing solar with battery storage can help keep your business running during blackouts.

⚙️ What’s New in 2025?

1. NEM 3.0 Update

California's Net Energy Metering (NEM) program has shifted to NEM 3.0, changing how solar exports are credited. Under NEM 3.0:

• Exported electricity is compensated at a lower rate based on market value.

• Battery storage is highly recommended to maximize savings by using energy when utility rates are highest.

2. Federal & State Incentives

• Federal Investment Tax Credit (ITC): Still offers up to a 60% tax credit on the total system cost through 2032.

• MACRS Depreciation: Accelerated depreciation allows significant tax deductions in the first year.

• California Self-Generation Incentive Program (SGIP): Offers rebates for energy storage systems—especially valuable for commercial-scale batteries.

🏢 Is Your Business a Good Fit for Solar?

Solar is a great fit if:

• You own your building or have a long-term lease.

• Your roof is in good condition and relatively unobstructed.

• Your electricity usage is high during daytime hours.

• You're looking to improve ESG performance or qualify for LEED certification.

Don't own your building? Consider solar carports or ground-mounted systems, or explore Power Purchase Agreements (PPAs) if upfront costs are a concern.

🛠️ What’s the Installation Process Like?

1. Site Assessment & Energy Audit Engineers evaluate your roof or site, usage patterns, and goals.

2. System Design & Proposal Custom design with projected savings, ROI, and incentive estimates.

3. Permitting & Interconnection Your solar provider handles all local permitting and coordination with utilities.

4. Installation Typically takes 1–2 weeks for commercial-scale projects.

5. Inspection & Activation After inspection and utility approval, the system is activated—often within 30–45 days from contract signing.

💡 Pro Tip: Bundle with Energy Storage

Batteries let you:

• Store excess solar power.

• Use energy during peak-rate periods.

• Stay online during outages. With falling battery prices and strong incentives, many SoCal businesses are going solar + storage in 2025.

📈 Final Thoughts: Future-Proof Your Business

Going solar isn’t just about savings—it’s about stability, resilience, and positioning your brand as a sustainability leader. With advanced technologies, better financing options, and robust incentives, SoCal businesses that act now will reap long-term benefits.

Ready to Go Solar in 2025?

We’re here to help. Contact us for a free site assessment and customized proposal.

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