Federal Solar and Wind Tax Credits

What types of solar electric systems qualify for the 30%(Update 26%) Federal Tax Credit?*
  • ANY complete solar power package, for home or business.
  • Emergency battery backup system, as long as the purchase includes at least one solar panel.
  • Product purchases that expand your existing solar power system and include at least one solar panel.
  • Solar System for RV and boat that has been accepted by the IRS as a second home for tax purposes.**
Some Facts Regarding Eligibility of the Federal Tax Credit: *
  • The home served by the system does not have to be the taxpayer’s principal residence.
  • If the federal tax credit exceeds your tax liability, the excess amount may be carried forward to the succeeding taxable year.
  • There is no ceiling on the tax credit.
  • Applies to equipment AND installation costs.
  • For Residential Renewable Energy Systems, use IRS Tax Form 5695 to report your expenses. (It can be used for any residence, not just your primary one.) 
  • Commercial systems have similar guidelines as residential systems but use IRS Tax Form 3468. 

* Every individual's tax situation is different. Please consult a tax professional to make sure your situation is applicable.

Federal Tax Credits in effect through 2021
EDIT: 12/2015

In December 2015, the Consolidated Appropriations Act extended the 30% credit for residential solar to the end of 2019.  It then steps down over two years and expires completely at the end of 2021.
  • 30% for systems placed in service by 12/31/2019
  • 26% for systems placed in service in 2020 (Update Extended through 2022)
  • 22% for systems placed in service in 2021 (Update 22% in 2023)
  • There is no maximum credit for systems placed in service after 2008.​
  • The home served by the system does not have to be the taxpayer’s principal residence.