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2025 Federal Incentive · IRC Section 25D

The 30% Solar Tax Credit — How Much Is Yours?

Solar tax credit availability changed in 2025 with the One Big Beautiful Bill Act. Certain installations may still qualify — HomeShark uses AI to estimate your solar savings potential based on your roof and location.*

AI estimates your solar savings & available tax credit eligibility — in 2 minutes.*

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🔒 PRIVATE ⚡ INSTANT 💰 FREE
30%
federal solar tax credit
$9,000
avg credit on $30k system
$0
income limit to qualify
30%
of total system cost back as a tax credit
$9,000
credit on a typical $30,000 system
2032
credit authorized through this year

The biggest residential energy incentive ever created

Note: Federal solar credit availability changed in 2025. The information below reflects prior law — eligibility depends on your situation and project timing. Consult a tax professional for current guidance.*

What's covered: Solar panels, inverters, mounting hardware, wiring, labor, permitting fees, battery storage (if charged by solar), and sales tax. The 30% applies to the complete system cost.
☀️
Solar Tax Credit (25D)*
Monocrystalline, polycrystalline, or thin-film panels
30%
🔋
Battery Storage (25D)
Powerwall or any qualifying battery storage system
30%
EV Charger (30C)
Level 2 home charger, installed with your solar system
$1,000
Typical combined federal + state value$9,800+

Solar payback: faster than you think

With electricity rates averaging $0.16/kWh nationally (and rising), a typical 8kW system generating 10,000 kWh/year saves $1,600 annually before any credits. After the 30% federal credit, the net system cost drops from ~$25,000 to ~$17,500 — yielding a payback period of 9–11 years with a 25-year net return of $25,000–$40,000.

What if I don't owe enough taxes?

The credit is non-refundable but it does carry forward. If your tax liability this year is $5,000 and your credit is $8,000, you use $5,000 this year and carry $3,000 to next year's return — until the credit is fully consumed.

Leased solar: you don't get the credit

Only the system owner claims the 25D credit. If you lease solar or sign a Power Purchase Agreement (PPA), the leasing company claims the credit — not you. This is the primary financial reason to purchase rather than lease.

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01 — ADDRESS

Enter your address

We pull your home's public property record — square footage, year built, roof type, HVAC age, and solar potential — automatically.

02 — BILL (OPTIONAL)

Upload a utility bill

Drop in a photo or PDF of any bill. Our AI reads your exact kWh usage, costs, and provider — making your report 3× more accurate.

03 — REPORT

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Receive a personalized AI efficiency score, neighbor comparison, estimated savings opportunities, and available federal and state incentives for your home.*

04 — QUOTES

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Request free quotes from up to 4 vetted local installers for solar, HVAC, EV chargers, and more. They compete — you choose the best price.

Real savings, real homeowners

★★★★★
"I had no idea I qualified for a $6,600 solar credit plus another $2,500 from Austin Energy. HomeShark took 2 minutes and I'll save $187 every month."
Colin A. · Austin, TX · Solar + EV Charger
★★★★★
"The neighbor comparison was eye-opening — I was using 34% more electricity than similar houses. The insulation upgrade pays for itself in under two years."
Cheri J. · Las Vegas, NV · Insulation Upgrade
★★★★★
"I uploaded my electric bill photo and within 2 minutes had a full report showing $9,200 in available credits. The contractor match was seamless."
Jennifer K. · Los Angeles, CA · Heat Pump + Solar

Frequently asked questions

What is the federal solar tax credit status in 2026?

The federal solar ITC (IRC Section 25D) was 30% with no dollar cap under the IRA. Most IRA residential credits were curtailed by the One Big Beautiful Bill Act in 2025. Some exceptions may apply depending on your installation timing and situation. Verify current eligibility with a qualified tax professional before making financial decisions.

How do I claim the solar tax credit?

You claim the credit on IRS Form 5695 when filing your federal tax return for the year the system was installed. The credit is non-refundable, meaning it reduces your tax liability but won't generate a refund beyond what you owe.

Did the solar tax credit change in 2025?

Yes. The One Big Beautiful Bill Act (2025) curtailed most IRA residential energy credits including the solar ITC (IRC 25D). Some exceptions may apply for in-progress projects, leased systems, and certain other situations. The step-down schedule (26% in 2033, 22% in 2034) that existed under the IRA may no longer reflect current law. Consult a tax professional for your specific situation.

Can I combine the federal credit with state rebates?

Yes. Most state solar incentives are additive — you can stack a state rebate with the 30% federal credit. HomeShark finds every state and utility rebate available at your specific address.

What if my tax liability is less than the credit?

Any unused credit carries forward to the following tax year. So if you owe $4,000 in taxes but earn a $7,500 credit, the remaining $3,500 rolls forward.

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