What You Need to Know About the Federal Solar Tax Credit

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If you’re considering a solar PV system, continue reading to learn how you can see up to 30% back on your federal taxes.

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In 2019, the United States government started offering reductions on federal income taxes to those installing residential solar systems.

What is the Federal Solar Tax Credit?

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The incentive was set to end in 2022 but was extended for another 10 years in August. Anyone installing a solar array until 2032 might be eligible for 30% of their installation as credit.

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To qualify for a 30% credit, customers must have their system installed between January 1, 2017, and December 31, 2032. 

Federal Solar Tax Credit Eligibility Requirements

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Customers can receive credits on several aspects, including: – Solar PV panels and cells – Contractor labor costs, such as preparation, assembly, and installation

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Solar Expenses are Included in the Federal Solar Tax Credit

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– Energy storage devices such as lithium-ion batteries (storage devices installed after December 31, 2022, must have a capacity of 3kWh or more to qualify) – Sales tax on expenses

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Depending on location, several rebates exist for equipment. Many utility companies will offer subsidies for connecting an array to the municipal power grid.

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Other Solar Incentives

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