Federal Residential Clean Energy Tax Credit (25D)

IRS, Internal Revenue Service

Open Energy Assistance

About This Program

The federal 25D Residential Clean Energy Credit provides a 30% tax credit with no dollar cap for qualifying renewable energy installations. For Virginia Beach homeowners, solar panels combined with battery storage are particularly compelling given the coastal energy market and Dominion Energy net metering. Excess credit carries forward to future years through 2032.

Example: $22,000 solar plus battery installation yields $6,600 federal tax credit

Key Details

  • 30% federal tax credit, no maximum dollar cap
  • Covers solar panels, battery storage, geothermal heat pumps
  • Particularly valuable for Virginia Beach given coastal solar potential
  • Excess credit carries forward to future tax years
  • Claim on IRS Form 5695 with your annual federal return

How to Apply

Deadline: Annual, claim on federal return for the year system is placed in service

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