Solar Tax Credit Calculator
Residential Solar Credit
Federal ITC + state incentives for home solar
Cost Per Watt After Credits
Formula
Federal ITC = (Solar Cost + Battery Cost) × ITC Rate; Total Incentives = Federal ITC + State Credit + Utility Rebate; Net Cost = Total System Cost − Total Incentives
Frequently Asked Questions
What qualifies for the federal solar tax credit?
The federal ITC covers solar panels, inverters, racking, wiring, battery storage, and installation labor. The system must be installed at your primary or secondary US residence. Rental properties don't qualify for the residential credit but may qualify for the commercial ITC.
Can I claim the solar tax credit on battery storage?
Yes! Under the Inflation Reduction Act, standalone battery storage qualifies for the 30% ITC even without solar panels. Previously, batteries had to be charged primarily by solar to qualify. This makes adding a home battery more financially attractive.
What happens if I can't use all of my solar tax credit in one year?
The federal solar ITC can be carried forward to future tax years. If your tax liability is less than the credit amount, the unused portion can offset taxes in subsequent years. Consult a tax professional for specific carry-forward rules.
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