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2025 Federal Incentive · IRC Section 25D

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

The federal solar investment tax credit returns 30% of your total solar installation cost directly off your tax bill — no cap, no income limit. HomeShark calculates your exact credit based on your roof size and location.

Takes 2 minutes. Used by 12,000+ homeowners.

30%
federal solar tax credit
$9,000
avg credit on $30k system
$0
income limit to qualify

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AS FEATURED IN
Forbes
This Old House
Architectural Digest
CNET
WSJ
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

The Inflation Reduction Act of 2022 extended and expanded the solar investment tax credit through 2032. Here's exactly what it covers.

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 Panels (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

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

02 — BILL (OPTIONAL)

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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 efficiency score, neighbor comparison, itemized savings opportunities, and every federal and state rebate you qualify for.

04 — QUOTES

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Request free quotes from 3 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 3 minutes and I'm now saving $187 every month."
Sarah K. · Austin, TX · Solar + EV Charger
★★★★★
"The neighbor comparison was eye-opening — I was using 34% more electricity than similar houses. The insulation upgrade paid for itself in under two years."
Marcus T. · Denver, CO · 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 R. · Portland, OR · Heat Pump + Solar

Frequently asked questions

What is the 2025 federal solar tax credit?

The federal solar investment tax credit (ITC), under IRC Section 25D, gives homeowners a 30% tax credit on the total installed cost of a rooftop solar system — equipment, labor, permitting — with no dollar cap.

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.

Does the solar credit expire?

The 30% credit is authorized through 2032, then steps down to 26% in 2033 and 22% in 2034, before expiring in 2035 unless renewed by Congress.

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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