The federal solar tax credit, officially called the solar Investment Tax Credit, is probably the most well known solar incentive available in the United States. This is likely because of the size of the potential savings! Owners of residential solar and commercial solar energy systems who install their solar panels are given a federal tax credit equalling a percent of their total solar installation costs. There is no cap on the maximum credit allowed, and you are also allowed to roll forward any remaining balance into the next tax year if your tax credit exceeds the total amount of federal taxes due.

This solar incentive has been extended at 30% through 2032; will step down in 2033 and be eliminated for residential in 2035.