Solar Rebates & Tax Credits

The federal Residential Clean Energy Credit covers 30% of solar installation costs with no cap. For a typical $25,000 system, that is $7,500 back on your federal taxes. The credit steps down to 26% in 2033 and 22% in 2034.

Yes. Federal and state incentives stack. You can claim the 30% federal tax credit plus any state rebate, tax credit, or property tax exemption. Some states offer an additional $1,000 to $5,000 on top of the federal credit.

For the federal tax credit, you must own the system outright or finance it with a loan. Leased systems and power purchase agreements (PPAs) do not qualify for the federal credit, though the installer may pass savings to you.

File IRS Form 5695 with your annual tax return. The credit reduces your federal income tax dollar-for-dollar. If the credit exceeds your tax liability, the excess carries forward to future years.

Yes. As of 2023, standalone battery storage systems of 3 kWh or more qualify for the 30% federal tax credit even without solar panels. Many states also offer additional battery incentives.