Going Solar? Here’s How the Residential Clean Energy Credit Can Help
Going solar isn’t just good for the planet—it can also lead to major savings on your taxes. If you’ve made (or are planning to make) clean energy upgrades to your home, you may qualify for the Residential Clean Energy Credit, which covers 30% of the cost of eligible systems like solar panels, batteries, and more.
Here’s a quick breakdown to help you understand how it works and how to claim it.
How the Residential Clean Energy Credit Works?
You can claim 30% of the cost of new, qualifying clean energy systems installed between 2022 and 2032.
The credit drops to 26% in 2033 and 22% in 2034.
This is a nonrefundable tax credit—it can reduce what you owe, but not give you a refund.
If you don’t use the full credit in one year, you can roll it over to future years.
Who Qualifies?
Homeowners and renters in the United States.
The upgrades must be made to your main home (some second homes also qualify).
Landlords can’t claim the credit unless they live in the home.
Business use?
If you use your home partly for business:
Up to 20% business use: full credit.
More than 20%: partial credit based on personal use.
What Expenses Are Covered?
You can claim the cost of:
Solar panels
Solar water heaters (must be certified)
Wind turbines
Geothermal heat pumps (must meet Energy Star requirements)
Fuel cells (some limits apply)
Battery storage (3kWh or more, starting in 2023)
Labor and installation costs are also eligible.
Used systems or standard roof materials don’t qualify—but solar roofing tiles and shingles do.
How to Claim the Credit?
Complete Form 5695 when filing your taxes.
Only claim the credit in the year your system is installed, not purchased.
Save your receipts and certifications!
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