• The federal residential solar energy credit is a tax credit that can be claimed on federal income taxes for a percentage of the cost of a solar photovoltaic (PV) system.* (Other types of renewable energy are also eligible for similar credits but are beyond the scope of this guidance.)
• The system must be placed in service during the tax year and generate electricity for a home located in the United States.*

* irs.gov/credits

You might be eligible for this tax credit if you meet all of the following criteria:*

• Your solar PV system was installed before December 31, 2025.**
• You own the solar PV system (i.e., you purchased it with cash or through financing but you are neither leasing nor are in an arrangement to purchase electricity generated by a system you do not own).*
• The solar PV system is new or being used for the first time. The credit can only be claimed on the “original installation” of the solar equipment.*

* irs.gov/credits
** irs.gov/newsroom

The following expenses are included:*

• Solar PV panels or PV cells
• Contractor labor costs for onsite preparation, assembly, or original installation, including permitting fees, inspection costs, and developer fees.
• Balance-of-system equipment, including wiring, inverters, and mounting equipment.
• Battery Storage Technology (starting in 2023)**
• Sales taxes on eligible expenses.

* irs.gov/credits
** irs.gov/instructions