Incentives 5 min read January 15, 2025
The 2025 Federal Solar Tax Credit (ITC): Everything You Need to Know
The 30% Investment Tax Credit is the biggest incentive for homeowners. Learn how to claim it and what qualifies in 2025.
The Residential Clean Energy Credit, also known as the Investment Tax Credit (ITC), allows homeowners to subtract 30% of the cost of installing solar heating, electricity, and water heating from their federal taxes.
What expenses qualify?
- Solar photovoltaic (PV) panels or PV cells.
- Contractor labor costs for onsite preparation, assembly, or original installation.
- Balance-of-system equipment, including wiring, inverters, and mounting equipment.
- Energy storage devices that have a capacity rating of 3 kilowatt hours or greater.
There is no cap on the amount you can claim. If your system costs $20,000, your tax credit would be $6,000.
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