FederalTax CreditSolar

Residential Clean Energy Credit (Solar)

Amount

30%

Maximum

No cap

Expiration

30% through 2032, 26% in 2033, 22% in 2034

Overview

30% federal tax credit for solar panel systems installed on primary or secondary residences. Covers solar PV panels, solar water heaters, battery storage (3+ kWh), and installation labor costs.

Eligibility

Homeowners with federal tax liability. Must own the system (not lease). New or existing homes.

How to Claim

File IRS Form 5695 with your federal tax return. Credit reduces your federal income tax dollar-for-dollar. Excess credit carries forward.

What It Covers

Solar PV, solar water heating, battery storage, installation

Income Limits

None

IRS Form

File Form 5695 with your federal tax return to claim this credit.

Official Source

https://www.irs.gov/credits-deductions/residential-clean-energy-credit

Frequently Asked Questions

How much is the Residential Clean Energy Credit (Solar) worth?

The Residential Clean Energy Credit (Solar) provides 30% (up to No cap) as a tax credit. This is a federal-level program in the Solar category. It applies nationwide to qualifying households.

Who is eligible for the Residential Clean Energy Credit (Solar)?

Eligibility: Homeowners with federal tax liability. Must own the system (not lease). New or existing homes.. This program applies to: Homeowners.

Is the Residential Clean Energy Credit (Solar) a tax credit or a rebate?

The Residential Clean Energy Credit (Solar) is classified as a Tax Credit. Tax credits reduce your tax liability dollar-for-dollar when you file your return.

How do I claim the Residential Clean Energy Credit (Solar)?

File IRS Form 5695 with your federal tax return. Credit reduces your federal income tax dollar-for-dollar. Excess credit carries forward.

When does the Residential Clean Energy Credit (Solar) expire?

This program is currently set to expire: 30% through 2032, 26% in 2033, 22% in 2034.

Who is eligible for the Residential Clean Energy Credit (Solar)?

Homeowners with federal tax liability. Must own the system (not lease). New or existing homes.

How much is the Residential Clean Energy Credit (Solar) worth?

The Residential Clean Energy Credit (Solar) provides 30% as a tax credit on your federal return. This can be combined with state and utility incentives for additional savings.

State Solar Programs That Stack

These state programs can be combined with the Residential Clean Energy Credit (Solar):

Alaska Renewable Energy Property Tax ExemptionAlaska - Varies Alaska Solar Rebate ProgramAlaska - $1,026 Matanuska Electric Solar Panel RebateAlaska - $500-$2,500 Alabama Power Solar Panel RebateAlabama - $500-$2,500 Alabama Renewable Energy Property Tax ExemptionAlabama - Varies Alabama Solar Rebate ProgramAlabama - $903 TVA Solar Panel RebateAlabama - $500-$2,500 Arkansas Net MeteringArkansas - Varies Arkansas Renewable Energy Property Tax ExemptionArkansas - Varies Arkansas Solar Rebate ProgramArkansas - $3,118

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RebatePeek Editorial TeamData Specialists

The RebatePeek editorial team aggregates and verifies programs data from DSIRE, IRS, DOE, EIA & State Energy Offices. Every statistic on this site is cross-referenced against the official source before publication, with quarterly re-verification cycles.

✓ Sourced from DSIRE, IRS, DOE, EIA & State Energy Offices✓ Quarterly review✓ No paid placements

Read our full methodology or contact us with corrections.

Peer Resources

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Frequently Asked Questions

How much is the Residential Clean Energy Credit (Solar) worth?

The Residential Clean Energy Credit (Solar) provides 30% (up to No cap) as a tax credit. This is a federal-level program in the Solar category. It applies nationwide to qualifying households.

Who is eligible for the Residential Clean Energy Credit (Solar)?

Eligibility: Homeowners with federal tax liability. Must own the system (not lease). New or existing homes.. This program applies to: Homeowners.

Is the Residential Clean Energy Credit (Solar) a tax credit or a rebate?

The Residential Clean Energy Credit (Solar) is classified as a Tax Credit. Tax credits reduce your tax liability dollar-for-dollar when you file your return.

How do I claim the Residential Clean Energy Credit (Solar)?

File IRS Form 5695 with your federal tax return. Credit reduces your federal income tax dollar-for-dollar. Excess credit carries forward.

When does the Residential Clean Energy Credit (Solar) expire?

This program is currently set to expire: 30% through 2032, 26% in 2033, 22% in 2034.

Who is eligible for the Residential Clean Energy Credit (Solar)?

Homeowners with federal tax liability. Must own the system (not lease). New or existing homes.

How much is the Residential Clean Energy Credit (Solar) worth?

The Residential Clean Energy Credit (Solar) provides 30% as a tax credit on your federal return. This can be combined with state and utility incentives for additional savings.