federal solar incentives
Federal Solar Investment Tax Credit (Solar ITC)
The Solar ITC is available to all U.S. residents who owe federal taxes. With it, a portion of your project costs can be deducted from your tax obligation, reducing the amount of taxes that you may owe. The credit is currently worth 26% of your project costs. In 2023, it reduces to 22%, and then expires for residential projects at the start of 2024. As an example, on a $10,000 solar project, the credit would reduce your tax liability by $2,600, which may significantly speed up your
payback period.