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Federal Solar Tax Credit Calculator
Calculate your federal solar tax credit eligibility and amount for residential systems placed in service in 2023–2025 and for business or commercial systems. The residential credit has expired for systems placed in service in 2026 or later — this calculator flags that automatically.
Include panels, inverter, racking, and installation labor.
This is the year the system became operational, not the year you signed a contract.
Last year the 30% federal residential credit applies — expired after Dec 31, 2025.
Business systems can still qualify for a federal credit even in 2026 and beyond.
A homeowner's primary or secondary residence.
Utility rebates typically reduce the basis you can claim the federal credit against. State tax credits usually don't.
Estimated federal tax credit
$6,000
Residential system, placed in service in 2025
Eligibility note
Residential systems placed in service in 2025 qualify for the 30% federal Residential Clean Energy Credit (Section 25D). This credit is nonrefundable — it reduces your tax liability but doesn't generate a refund — though unused amounts could generally carry forward to future tax years. File IRS Form 5695 with your federal tax return for that year.
Estimates reflect national averages for educational purposes only. Equipment prices and labor rates vary by region. Always get 2–3 quotes before proceeding. This is not tax advice. Consult a licensed tax professional to confirm your eligibility and how to claim this credit.
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What you'll need
- ·Total system cost before any credit
- ·The year the system was (or will be) placed in service
- ·Whether the property is residential or business/commercial
- ·Any utility rebate that reduces your system cost basis
What you'll get
- ✓Estimated federal tax credit — Based on install year and property type
- ✓Credit rate and basis — See exactly how the credit is calculated
- ✓Net cost after credit — System cost minus rebate and credit
- ✓Plain-language eligibility note — Explains why you do or don't qualify
Federal solar tax credit overview
The federal residential solar tax credit (Section 25D, the Residential Clean Energy Credit) offered 30% back on residential systems placed in service through 2025, but has expired for expenditures made after December 31, 2025. Business and commercial systems remain eligible for the 30% Section 48E investment tax credit regardless of year. Verify your specific eligibility with a licensed tax professional.
How it works
Enter your system cost
Tell us your total system cost and when it was (or will be) placed in service.
Select property type
Residential systems installed 2023–2025 qualify for 30% — business systems can still qualify in 2026+.
Get your credit estimate
See your estimated federal tax credit amount, credit rate, and net cost after credit.
Federal Solar Tax Credit by Install Year & Property Type
| Property Type | Install Year | Credit Rate |
|---|---|---|
| Residential | 2023 – 2025 | 30% |
| Residential | 2026 or later | 0% — expired |
| Business / Commercial | Any year | 30% (Section 48E) |
The residential federal solar tax credit (Section 25D) expired for expenditures made after December 31, 2025. Business systems can still claim the Section 48E credit. This is not tax advice — consult a tax professional.
Frequently asked questions
Is the federal solar tax credit still available?+
It depends on the property. The residential federal solar tax credit (Section 25D, the Residential Clean Energy Credit) has expired — it does not apply to expenditures made after December 31, 2025. The commercial credit (Section 48E investment tax credit) remains available at 30% for business and commercial solar systems regardless of year.
What's the difference between Section 25D and Section 48E?+
Section 25D is the residential Clean Energy Credit that applied to homeowners' solar installations, offering 30% back through 2025 before expiring. Section 48E is the commercial investment tax credit for business, rental, and commercial solar projects, which remains active at 30%, though larger projects must meet prevailing wage and apprenticeship requirements to earn the full rate.
How do I claim the federal solar tax credit?+
Residential filers who qualify (systems placed in service through 2025) file IRS Form 5695 with their federal tax return for the year the system was placed in service. Commercial filers claiming the Section 48E credit generally use IRS Form 3468. In both cases, keep your installation contract, proof of payment, and in-service date documented, and confirm the details with a tax professional.
What reduces my solar tax credit basis?+
Utility rebates typically reduce the cost basis you can claim the federal credit against, since they lower what you actually paid for the system. State tax credits and most other incentive programs usually don't reduce your federal credit basis. Check your specific rebate or incentive program's terms, or ask a tax professional, since rules can vary.
Can I carry forward an unused solar tax credit?+
Yes, generally. Both the residential and commercial solar credits are nonrefundable, meaning they can only reduce your tax liability rather than generate a refund — but if your credit exceeds what you owe in a given year, the unused portion can typically carry forward to future tax years. Confirm the specifics of your situation with a licensed tax professional.
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