How the Solar Tax Credit Helps You Save Big

What Is the Federal Solar Tax Credit

The Federal Solar Investment Tax Credit (ITC) allows you to deduct 30 percent of the total cost of your solar installation from your federal taxes. This applies to residential and commercial systems installed between 2022 and 2032. For example, if your system costs $20,000, the tax credit could reduce your federal tax bill by $6,000.

This benefit covers both equipment and installation, including solar panels, inverters, racking, wiring, and even certain battery storage systems.

How to Claim the Credit

To qualify, you must own your solar system. That means purchasing it outright or through a loan. If you lease your panels or enter a power purchase agreement, the company that owns the system will receive the credit instead.

When filing your taxes, you will use IRS Form 5695 to apply for the credit. If your credit amount is larger than what you owe in federal taxes that year, you can carry the remaining balance forward to future years until it is fully used.

Why Timing Matters

The 30 percent credit is locked in through 2032. After that, the percentage will drop, and in 2035, it is set to end for residential customers unless extended. Installing your system now means you secure the full 30 percent benefit and start lowering your utility bills right away.

Adding More Savings

In addition to the federal tax credit, you may qualify for state, local, or utility incentives. These can include cash rebates, property tax exemptions, sales tax exemptions, and performance-based incentives for the power your system generates. These programs can often be combined with the federal credit for even greater savings.

How Greenway Solar Makes It Simple

Our team takes the guesswork out of the process. We provide detailed invoices for your tax filing, explain which parts of your project qualify, and guide you toward any additional incentives in your area. We want you to get the maximum return on your investment from day one.

The Bottom Line

The solar tax credit is one of the best tools available to make clean energy affordable. When combined with lower monthly electric bills, higher property value, and the environmental benefits of renewable energy, it is clear why so many people are making the switch.

If you are ready to take advantage of the tax credit and start saving, Greenway Solar is here to design a system that works for your home or business and delivers dependable performance for decades.