The price of solar panels does not include tax

Are solar panels tax deductible?

Every U.S. taxpayer who purchases a solar installation is eligible to receive 30% of the cost back as an income tax credit in the year after installation. If you’re thinking about getting solar panels installed, it’s important to know how the tax credit works, how much it may be worth to you, and how it combines with other solar incentives.

How much does the federal solar tax credit cost?

The federal solar tax credit – officially called the residential clean energy credit – knocks 30% off that price tag. After this credit, your actual cost drops to approximately $20,754 for a typical system. But there's a time-sensitive catch that could cost you thousands. Critical deadline alert: The federal tax credit expires on December 31, 2025.

Do solar panels qualify for tax credit?

Yes, you can claim the tax credit for solar installations on secondary residences. But check with your tax provider to determine if your vacation home meets the requirements to qualify. Does battery storage qualify for the federal tax credit in 2025?

Can I claim a solar tax credit?

To qualify for the 30% Residential Clean Energy Credit, you need to check three boxes. 1,3,4 If your solar system meets these requirements, you can claim a tax credit based on a portion of your purchase costs during tax season. For homeowners looking to claim a solar tax credit on their next return, these factors may affect the ability to file: 1