The current federal tax credit for solar installations is known as the Residential Clean Energy Credit. As of 2025, this credit allows homeowners and businesses to claim 30% of the costs of new, qualified solar energy property installed on their residence or property.
Key Details of the Solar Tax Credit in 2025:
- Credit Amount: 30% of the cost of the solar installation (including solar panels and battery storage technology) for systems installed from 2022 through 2032.
- No Cap: There is no maximum limit on the dollar amount of the credit.
- Eligible Properties: The credit applies to solar PV systems installed on various types of residences including single-family homes, mobile homes, co-ops, condominiums, manufactured homes, and houseboats. It may also apply to vacation homes proportionally to the time used as a residence.
- Duration: The 30% credit rate holds from 2022 through 2032. It then steps down to 26% in 2033 and 22% in 2034 before expiring entirely after 2034.
- Incentive Stability: Despite some political uncertainty, the solar tax credit funding for 2025 has been approved by Congress and remains available, making 2025 a favorable time to install solar.
Summary Table of Federal Solar Tax Credit Rates:
| Year | Tax Credit Percentage | Notes |
|---|---|---|
| 2022-2032 | 30% | Current full credit |
| 2033 | 26% | Step-down begins |
| 2034 | 22% | Final reduced credit |
| 2035+ | 0% | Credit expires |
This federal tax credit is the most significant incentive available and can save homeowners thousands of dollars on solar installations, encouraging the adoption of renewable energy.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-current-federal-tax-credits-for-solar-installations/
