SOLAR TAX CREDIT

What is the Residential Renewable
​Energy Tax Credit?

​Also known as the Solar Tax Credit, FTC or ITC in the solar industry, this incentive helps make solar more affordable for homeowners by granting a dollar-for-dollar tax credit equal to as much as 26% of the total cost of the solar energy system.

How Does the Solar Tax Credit Work?

As long as you own your solar energy system, you are eligible for the solar investment tax credit. You can claim the investment tax credit for solar when you file your yearly federal tax return.

Congress in December 2020 extended the ITC to 26% for two additional years

Steps to File the Solar Tax Credit

Steps:

1. ​ File Form 5695 with all of your regular taxes  
2.  To fill out the form all you need is your  ​Solar Energy System Service Agreement  . (This can be found within your email. If you're not able to locate your agreement please give us a call for further assistance.)
3. From the Service agreement all you need is your system size and your system cost.

Remember you have up to 5 years to claim your tax credit
Every individuals tax situation is unique. If you understand your tax liability/how much you owe in taxes, you'll understand your limits on how much of the tax credit you can take advantage of within year 1 of filing your taxes. Some can take full advantage within the first year, others can take advantage of only a portion per year for up to 5 years.
​Consult with your tax professional to see how you'll benefit.

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