Guide to the Solar Federal Tax Credit (ITC)

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The federal government has been interested in solar since the 70s. And if you haven't heard yet, they want to pay for 26% of your home solar build out. 

It's an amazing offer, that unfortunately, won't last forever. The program, also referred to as the solar Investment Tax Credit (ITC), is set to reduce to 10% in 2023, and be completely gone by 2024. 

So solar companies and homeowners are going nuts, rushing to get their system at a large discount. 

Some people hypothesize that the price of solar will come down enough to offset the loss of the tax credit, but historical price reductions over the last year have only dropped a few percent, not anywhere near the 14% drop that is slated to occur in 2023. 

A common question - Does Project Solar qualify for the federal tax incentives? 

Yes, absolutely. Even if you opt for DIY install, you are still qualified for a tax break of 26% of your invoiced total. 

The tax credit has no limit, so you can size the system as large as you want and reap the full benefits. 

An average Project Solar customer saves $3500 with their ITC credit. 

Note - if you have no tax liability and do not plan to have a tax liability, you will not be able to take advantage of the credit. Also, you must own your system, not lease (we do not sell solar leases at Project Solar).

How to Get the Tax Credit

Step 1. Fill out the form 5695

Although two pages, this form really only has a few questions pertinent to the average consumer. There are additional credits available for wind, geothermal, and fuel cells, but most are just filling out the solar and possible the battery component, so don't get overwhelmed (we can also assist if needed). 

ITC tax form for solar

Step 2. Add the total from form 5695 to your standard tax document. If you do not have a large enough tax liability for the year, you can carry over the credit into future years. 

It's that easy. Keep a copy of your invoice on hand incase you get audited, but other than that, there are no other approval processes or hoops to jump through. 

Get started now by using our free quote estimator. 

solar quote estimator