Federal Solar Tax Credit Calculator
Example: Solar system cost: 24000 $ · Other eligible costs (battery, wiring): 4000 $ · Credit percentage: 30 %
| Federal tax credit value | $8,400 |
| Total eligible basis | $28,000 |
| Net cost after credit | $19,600 |
Worked example
Suppose your solar array costs $24,000 and you add $4,000 of eligible costs such as a battery and electrical upgrades, for a $28,000 eligible basis. At 30%, the Residential Clean Energy Credit is worth $8,400 off your federal tax bill, bringing your net system cost to $19,600. Because it is a credit rather than a deduction, that $8,400 comes straight off the taxes you owe.
Frequently asked questions
How much is the federal solar tax credit worth?
It equals 30% of your eligible system cost for solar placed in service from 2022 through 2032, then steps down in later years. The credit applies to panels, inverters, mounting, wiring, labor, and qualifying battery storage. Enter your total eligible cost and the tool computes 30% of it.
Is it a tax credit or a refund?
It is a nonrefundable tax credit, meaning it reduces the federal income tax you owe dollar for dollar. If the credit is larger than your tax liability in the year you install, the unused portion generally carries forward to future tax years until it is used up.
Does a battery qualify for the credit?
Yes. Since 2023, standalone home batteries with at least 3 kWh of capacity qualify for the 30% credit, and batteries installed with solar have always qualified. Include the battery cost in your eligible basis to capture its share of the credit.
Do I need to own the system to claim it?
Yes. You must own the system — through cash or a loan — to claim the credit. If you lease the panels or sign a power purchase agreement, the third-party owner claims the incentive instead, which is one reason ownership usually beats leasing on total value.