Is the Federal Solar Tax Credit Still Available for Homeowners?

Icon Power is not a tax advisor. This page explains the general federal rules. A tax professional can tell you how they apply to you.

What happened to the federal solar tax credit?

Federal law ended the residential clean energy credit, the homeowner credit for buying solar panels and battery storage, for expenditures made after December 31, 2025. The IRS treats the cost as paid when installation is completed, so homeowner-owned systems completed in 2026 or later don't qualify.

My system was installed in 2025. Can I still claim it?

Yes, if you own the system and its installation was completed by December 31, 2025. Here's how it works:

• Claim it on your 2025 federal return using IRS Form 5695.
• It reduces your tax dollar for dollar. It lowers the federal income tax you owe, not your taxable income.
• It isn't refundable. The credit can't be more than the tax you owe for the year.
• Unused credit can carry forward. If you can't use all of it on your 2025 return, the IRS lets you carry the unused portion to 2026.

What should I give my tax preparer?

• Your signed contract and final invoice showing the total system cost
• The date your installation was completed
• Your financing documents, if you financed the system

If you file yourself, tax software will walk you through Form 5695. Icon Power can confirm your system size, cost, and installation date. Call us at (888) 777-3766.

Does a lease or PPA change anything?

Homeowners with a lease or power purchase agreement (PPA) don't own their system, so they were never able to claim the homeowner credit. With a lease or PPA, the company that owns the system handles any tax benefits it qualifies for. See our financing options to compare buying, financing, leasing, and PPAs.

Can businesses still get a solar tax credit?

Businesses, nonprofits, and other commercial property owners may still qualify for the federal investment tax credit under separate rules and deadlines. See our commercial solar page for details.

Are there state or local incentives?

State and utility programs vary by location and change often. When you request a quote, Icon Power will tell you which programs apply in your area.

Is solar still worth it without the federal credit?

It depends on your utility rates, how much energy you use, and how you pay for the system. A free quote shows your estimated costs and savings for your home.

Frequently asked questions

Can I claim the credit if my system was installed in January 2026?

No. The credit only covers systems whose installation was completed by December 31, 2025.

Which IRS form do I use for a 2025 installation?

Form 5695, Residential Energy Credits, filed with your 2025 federal tax return.

Where can I read the official rules?

See the IRS Instructions for Form 5695, or ask a tax professional.