Residential Clean Energy Credit (25D) – Solar & Clean Energy

About This Program

The federal Residential Clean Energy Credit (IRC Section 25D) provides a 30% non-refundable income tax credit for qualifying clean energy installations — solar panels, battery storage, small wind turbines, geothermal heat pumps, and fuel cells — placed in service through December 31, 2025. Note: The One Big Beautiful Bill Act (signed July 4, 2025) eliminated this credit after 2025. Excess credits carry forward to future tax years.

Tax credit reduces federal income tax owed dollar-for-dollar. On a $20,000 solar installation, the credit equals $6,000. Claim on IRS Form 5695.

Key Details

• 30% federal tax credit for solar, battery storage, wind, geothermal
• No dollar cap — applies to full eligible installation cost
• Must be placed in service by December 31, 2025
• Non-refundable — excess credit carries forward to future years
• Claim on IRS Form 5695 with your federal tax return

How to Apply

Deadline: Systems must be placed in service by December 31, 2025 (eliminated after that date by legislation passed July 4, 2025)