Federal Residential Clean Energy Tax Credit (Solar ITC)

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

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