Federal Tax Credit
How To Claim the Federal Solar Tax Credit
You can get a 30% tax credit on the total cost of your solar generator! Just purchase your system before the end of 2022 and claim the credit on your 2022 taxes!
You claim the solar tax incentive as part of your annual federal tax return with the Internal Revenue Service (IRS). We have listed the essential steps in claiming the credit here:
- First, download IRS Form 5695 as part of your tax return.
- Then, on Part I of the tax form, calculate the credit. You file your solar system as “qualified solar electric property costs.” Then, on line 1, enter your project’s total costs.
- Location: The solar system is located at your primary residence or secondary home in the United States. It may also be used for an off-site community project if the electricity generated is credited against your home’s electricity consumption and does not exceed it.
- Ownership: You own the solar PV system. You cannot claim the credit if you are leasing or in an agreement to purchase electricity generated by the system, including a solar power purchase agreement (PPA).