Federal Solar Tax Credit (ITC)
A 30% federal income-tax credit on residential solar and battery storage system costs, currently scheduled through 2032.
Quick answer
Federal Solar Tax Credit (ITC): A 30% federal income-tax credit on residential solar and battery storage system costs, currently scheduled through 2032. Typical cost: Reduces system cost 30%; on a $25,000 system, a $7,500 credit..
Why it matters
The ITC is a dollar-for-dollar tax credit — not a deduction — and applies to total system cost including labor and storage.
Typical cost
Reduces system cost 30%; on a $25,000 system, a $7,500 credit.
Pros
- • Stackable with state and utility incentives
- • Carries forward if you can't use it all in one year
Cons
- • Requires sufficient tax liability
- • Phases down after 2032
Common uses
- • Any owner-installed (not leased) residential solar system
Alternatives
State rebatesSRECs
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Frequently asked questions
- Can I claim the ITC on a leased solar system?
- No — only owners (cash or loan) claim the credit; the leasing company keeps it.
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