Federal Residential Clean Energy Tax Credit (Solar ITC)

U.S. Internal Revenue Service, Inflation Reduction Act

Available Home Repair

About This Program

The federal Residential Clean Energy Credit provides a 30% tax credit on the cost of installing solar panels, battery storage, wind, geothermal, or fuel cell systems at your primary or secondary residence. The credit is non-refundable but can be carried forward. Available through 2032 at 30% before stepping down. Sacramento homeowners benefit from high solar production given the region's sun exposure.

Tax credit, not a grant, reduces federal income tax owed; unused credit carries forward to future years

Key Details

  • 30% of total solar installation cost as a federal tax credit
  • Applies to solar panels, battery storage, geothermal, and wind systems
  • Non-refundable, reduces taxes owed; excess carries forward to future years
  • Available at 30% through 2032; steps to 26% in 2033, 22% in 2034
  • Claim on IRS Form 5695 with your federal tax return

How to Apply

Visit Official Program Page Track this program

Deadline: 30% credit available through 2032; steps down to 26% in 2033, 22% in 2034

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