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Tax Credit Information

Consumers who install solar electric systems can receive a tax incentive for the net cost of the system.

One of the reasons you may have gone solar for your home is the Federal Investment Tax Credit (ITC), commonly known as the Solar Tax Credit. The Federal ITC makes solar energy more affordable for homes and businesses to go solar. 

Federal Residential Renewable Energy Tax Credits


To receive this tax credit, you will need to file form 5695 available at: 

https://www.irs.gov/forms-pubs/about-form-5695


Please consult your tax professional for proper tax filing.


Lease and Solar PPA customers do not own their system and therefore are not eligible for the tax credit. 

Am I eligible for the solar tax credit?

  1. Own the solar energy system
  2. Have a federal tax liability to use the ITC against
  3. Went solar for your home in the USA

Do you own the solar panel system or lease?

To be eligible for the Federal ITC, you must own your solar energy system. You do not qualify if you went solar with a solar lease or solar Power Purchase Agreement (PPA). If you have solar through a lease or PPA, the solar financing or solar company gets the Federal Tax Credit associated with the system. 

Do you Have a Federal Tax Liability? 

If you don’t have a Federal Tax Liability, the Federal ITC may not benefit you. If your Federal Tax Liability is lower than the total amount of your Federal ITC claim, you can carry the remaining tax credits to the following year. 

Is the property located in the USA?

It does not have to be your main home as long as you own the home and lived in it for part of the year. Your “home” can include a houseboat, RV, cooperative apartment, and condo.