Calculate your exact 30% federal solar tax credit for 2026, see which costs qualify, and find your true net system cost after the Residential Clean Energy Credit.
SCReviewed by Sarah Chen, Energy AnalystUpdated May 28, 2026Sources: DSIRE, NREL, IRS
The 30% federal credit applies to panels, inverters, labor, permitting and battery storage — with no dollar cap through 2032. Photo: American Public Power Association / Unsplash
Quick answerThe 2026 federal solar tax credit is 30% of your total eligible cost, with no dollar cap, locked through 2032. On a $20,000 system that's a $6,000 credit, cutting your net cost to $14,000. It covers panels, inverters, labor, permitting and batteries of 3 kWh or larger.
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Eligible costs
$
$
Labor, assembly, wiring, permit and inspection fees all qualify.
$
Batteries 3 kWh and larger qualify, even added later.
$
Your 2026 federal tax credit
$6,000
30% of eligible cost
Eligible cost
$20,000
Net after credit
$14,000
Credit rate
30%
Non-refundable credit: you must owe federal income tax to use it, but unused amounts roll forward. Confirm with a CPA.
How this calculator works
1
Add equipment cost
Panels, inverters, wiring and mounting hardware.
2
Add labor and permits
Installation labor, permitting and inspection fees all qualify.
3
Add battery (optional)
Storage of 3 kWh+ qualifies, even if added later.
4
Take 30%
The tool multiplies your eligible cost by 30% for your credit and net cost.
What the 30% solar tax credit covers
The federal Residential Clean Energy Credit (often called the ITC) is worth 30% of your total qualifying solar cost in 2026, and the Inflation Reduction Act locked it in through 2032. It's one of the most generous home-energy incentives ever offered. Eligible costs include:
Solar panels and PV cells
Inverters, wiring and mounting hardware
Battery storage of 3 kWh or larger (even if added in a later year)
Labor for on-site preparation, assembly and installation
Permitting fees, inspection costs and sales tax on equipment
How to claim it
You claim the credit on IRS Form 5695 with your federal tax return for the year your system is placed in service. The credit is non-refundable, meaning it can reduce your tax bill to zero but won't pay you cash beyond what you owe — however, any unused portion rolls forward to future tax years. Many homeowners use their credit (received as a larger refund) to prepay a solar loan, as explained in the Solar Loan Calculator.
On a typical $20,000 eligible system, the 30% credit is worth $6,000 — reducing your net cost to $14,000 before any state incentives.
State incentives stack on top of the federal credit. See what your state adds on the Solar Incentives by State page.
Questions
Frequently asked questions
How much is the solar tax credit in 2026?
The Residential Clean Energy Credit is 30% of your total eligible system cost in 2026, with no dollar cap. On a $20,000 system that's a $6,000 credit. The 30% rate is locked through 2032 under the Inflation Reduction Act, then steps down in 2033–2034.
What costs qualify for the solar tax credit?
Panels, inverters, wiring, mounting hardware, battery storage of 3 kWh or more, installation labor, permitting and inspection fees, and sales tax on the equipment all qualify. Roof repairs and non-solar electrical upgrades generally do not.
Is the solar tax credit refundable?
No, it's non-refundable. It can reduce your federal tax liability to zero but won't generate a refund beyond taxes owed. However, any unused credit carries forward to future tax years until it's fully used, so you rarely lose it entirely.
How do I claim the solar tax credit?
File IRS Form 5695 with your federal return for the tax year your system was placed in service (turned on), and carry the result to your Form 1040. Keep all receipts and your installer's documentation. A CPA can confirm how the credit interacts with your specific tax situation.
Can I claim the credit if I add a battery later?
Yes. Standalone battery storage of 3 kWh or larger qualifies for the 30% credit on its own, even if you add it years after the panels. This makes it easy to expand your system over time without losing the incentive.
Do I get the credit if I lease my panels?
No. With a lease or PPA the third-party owner of the system claims the credit, not you. To receive the 30% credit yourself you must own the system — either by paying cash or with a solar loan.
Sarah has spent 12 years modeling US residential solar economics, including 4 years contributing to NREL's Distributed Generation Market Demand model. She holds a BS in Mechanical Engineering from UC Berkeley and reviews every calculator and state guide on GreenCalcs against current IRS, DSIRE and EIA data. Read our methodology →
