The U.S. offers a Federal Solar Investment Tax Credit (ITC), allowing solar system owners to recoup part of their installation costs. Here’s how it works and who qualifies for this program.
How the Federal Solar Tax Credit Works
ITC enables you to deduct part of your solar panel installation costs as a tax credit. The percentage you can claim changes over time:
• From 2022 to 2032 — 30% tax credit on installation costs.
• 2033 — 26% credit.
• 2034 — 22% credit.
Now is the best time to install panels to benefit from the higher tax credit while panel prices are low.
1. Homeowners, apartment owners, and townhouse owners.
2. Landlords and property managers.
3. Federal income taxpayers.
How to Claim the Tax Credit
1. Keep all receipts and contracts to accurately calculate total costs.
2. Complete IRS Form 5695 and attach it to your annual tax return.
3. Specify the total amount spent on the installation.
This credit makes solar panels more affordable for homeowners, provides immediate and long-term savings, and promotes solar energy use, helping reduce carbon emissions.
If you want to know if you qualify for the federal program, leave a request on our website, and we’ll get in touch.