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Not Over Yet! What You Need to Know about Federal Tax Credits for Solar and Batteries.

You can still get 30% off the entire cost of rooftop solar and a home battery. But you need to start now to beat the end-of-year deadline!

Thinking about going solar or adding battery storage to your home? There’s no better time than right now—but don’t wait too long. The federal tax credits that shrink the upfront costs of clean energy expire on December 31, 2025. 

Want free guidance on upgrading your home? QuitCarbon provides free ENERGY STAR® certified guidance along with vetted local contractors to upgrade your home with heat pumps, induction cooking, EV chargers, solar, batteries, and more. Register your home today to learn more.

Federal Solar Tax Credit: A Great Deal with Limited Availability

For homeowners who owe taxes, the big federal solar incentive is the Residential Clean Energy Credit. If you install a solar panel system on your home before December 31, 2025, you can claim 30% of your total installation costs as a dollar-for-dollar tax credit on your federal taxes. This means if you spend $15,000 on solar, you can reduce your tax bill by $4,500—pretty compelling!

But here’s where the “limited” part comes in: This credit disappears for new solar installations starting January 1, 2026. So, if you’re considering going solar, there’s a clear deadline to act. After 2025, no new residential solar projects will qualify for the federal tax credit.

Other fine print:

  • There’s no cap (maximum) on the credit amount.
  • There are no income limits—any homeowner who pays federal taxes and owns their system can claim it.
  • If your tax credit is bigger than your tax bill, you can roll the unused portion over to the next year.
  • You must own your solar system (leasing or signing a power purchase agreement disqualifies you).
  • The system must be installed and placed in-service by December 31, 2025, to be eligible.

We recommend starting these projects as soon as possible and completing them in November to allow extra time for permitting, equipment shortages, contractor delays, or other surprises. Register your home with QuitCarbon today for free, expert guidance, and a referral to a vetted contractor. We'll make sure your journey is as smooth and timely as possible.

Battery Storage Tax Credit: Don’t Miss the Expiration Date

Whole home batteries—think Tesla Powerwall, Enphase batteries, or similar—also qualify for federal support. The “25D Battery Storage Tax Credit” covers 30% of the cost of purchasing and installing a battery system for your home. Good news: you don’t need solar panels to qualify—standalone batteries are fully eligible as long as they have at least 3 kWh of capacity and are installed in a residence.

But here’s the catch: This battery credit also ends December 31, 2025.

Highlights:

  • The battery credit is uncapped. Whether you install one battery or a full backup suite, 30% of eligible costs are covered.
  • Installation must be complete by the end of 2025 to qualify.
  • If you can’t use the full credit this year, you can carry the remainder forward to offset future tax bills.
  • Both primary and secondary homes are eligible, but rental properties don’t qualify.

Why “Limited Availability” Matters

Federal tax credits for home solar and battery storage help cut electric bills and clean the air. But they are time-limited. If you wait until 2026 or later, you’ll face the full, unsubsidized price—potentially thousands of dollars more out-of-pocket.

If you want the federal government to pitch in 30%, now’s the moment to move. Get your quotes, sign contracts, and install before the credits expire.

QuitCarbon helps you navigate every step of your clean home upgrade—so you don’t miss out on these game-changing savings. Register today and create a Home Profile to see how much you'll save with all available rebates and incentives.