Federal Solar Tax Credits

With harmful emissions contributing to global warming, the federal government is working to make it easier for homeowners to improve their energy efficiency. One of the primary ways is by offering a Federal Solar Tax Credit for newly installed thermal and photovoltaic energy systems.

Solar Dad and Sons has 16+ years of experience helping homeowners leverage these tax credits to make solar energy more affordable. We provide the necessary documentation and plans you’ll need to claim these rebates.

Which Solar Expenses Are Eligible for a Federal Tax Credit?

The current Federal Tax Credit allows homeowners to claim a credit of 30% of the qualified expenses for installing a solar energy system or solar water heating in their home. These expenses include: labor costs, piping and wiring, installation and the equipment itself.

When Do Federal Solar Tax Credits Expire?

Over the next ten years, the available credits will gradually decrease, so there is no time like the present to begin your solar energy project! As of 2015, the schedule allows for the full 30% tax credit to be claimed on solar energy systems placed into service by the end of 2019. That credit will drop by 4% in 2020 and by an additional 4% in 2021.

Solar Hot Water Qualifications

Solar hot water projects have specific qualifications: the system must be certified for performance by a government-endorsed organization and must provide at least half the energy for heating the home’s water.

The federal tax credit is not eligible for solar heating for swimming pools or hot tubs, but it is available for vacation homes, not just primary residences.

Curious about your home’s suitability for solar energy and how to maximize your deductions? Our team has been helping homeowners claim the Federal Solar Tax Credit for many years. We will ensure your paperwork is in order and your equipment is certified by the correct entity (although we are not tax professionals nor claim to be a substitute for a qualified accountant).