Federal Residential Clean Energy Credit (Solar / 25D)

About This Program

The IRS Section 25D Residential Clean Energy Credit provides a 30% federal tax credit on the full cost of installing solar panels, solar water heaters, battery storage, geothermal heat pumps, and small wind turbines through 2032 (drops to 26% in 2033, 22% in 2034). Florida also exempts solar systems from property taxes and sales tax. The average Miami solar installation of 8-10 kW costs approximately $22,000-$28,000, generating a credit of roughly $6,600-$8,400.

Tax credit, not a rebate, reduces federal taxes owed. Unused credit carries forward to future tax years. Florida also provides: 100% property tax exemption on solar system value and 6% sales tax exemption on solar equipment.

Key Details

• 30% federal tax credit on solar panels, battery storage, and geothermal systems
• No dollar cap, applies to full installation cost
• Florida adds: property tax exemption on solar system value + sales tax exemption
• Average Miami solar install: ~$22,000-$28,000 → credit of ~$6,600-$8,400
• Claim on IRS Form 5695; credit carries forward if not used in one year

How to Apply

Deadline: Annual, claim on federal tax return (through 2032 at 30%)