Inflation Reduction Act: Solar tax credit
Save money when upgrading to an energy-efficient solar array with a tax credit from the federal government.
Rebate Overview
Overview
The Inflation Reduction Act offers a 30% tax credit for homeowners installing solar panels and battery backup systems of 3 kWh or more. This means you can deduct 30% of your installation costs from your federal taxes. Upgrades completed in 2025 and tax credits claimed for those projects on 2025 tax returns (filed in early 2026) should be safe.
Benefits
Installing solar panels can lower your energy bills and increase your home's value. Adding a battery backup system ensures you have power during outages. These upgrades also help reduce pollution, making the environment cleaner for everyone.
More Information
- The 30% tax credit applies to both solar panels and battery backup systems of 3 kWh or more.
- The credit is available for installations completed in 2022 through 2032.
- To claim the credit, complete IRS Form 5695 and file it with your federal tax return.
- The Trump administration has indicated that it wants to repeal parts of the Inflation Reduction Act, which may eliminate this tax credit starting with the 2026 tax year.
- Upgrades completed in 2025 and tax credits claimed for those projects on 2025 tax returns (filed in early 2026) should be safe.
Details
- Expiration date: December 31, 2025
- Incentive type: Tax Credit
- Maximum Percent: 30%
- Category: Solar Array
- Link: More details
Maximize Your Savings with QuitCarbon
QuitCarbon's free, expert guidance makes it simple and affordable to get fossil fuels out of our homes. We've helped thousands of homeowners with planning, installation, and rebates on upgrades like heat pumps, mini-splits, induction cooking, and EV chargers.
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