Solar Tax Credit Calculator (30% Federal)
Calculate your 30% federal Residential Clean Energy Credit for solar PV systems installed in 2026. See your credit amount, carryforward to next year, and net cost after credit — free, private, and instant.
How the 30% Solar Tax Credit Works in 2026
The federal Residential Clean Energy Credit, also known as the solar Investment Tax Credit (ITC), provides a tax credit equal to 30% of qualified solar PV system costs installed at your home through 2032. After 2032 the credit steps down to 26% in 2033 and 22% in 2034 before expiring for residential installations on January 1, 2035 unless extended. Per IRS Residential Clean Energy Credit guidance, the credit applies to the total project cost including solar panels, inverters, racking, wiring, labor, permits, and sales tax — but excludes any utility rebates received (these reduce your credit basis). State tax credits and rebates from your state government generally do not reduce your federal credit basis.
Battery Storage Now Qualifies Separately Since 2023
Beginning January 1, 2023, the Inflation Reduction Act expanded the credit to include standalone battery storage systems with a capacity of 3 kWh or greater, even if installed without solar panels. This means a Tesla Powerwall ($10,000-$15,000), Enphase IQ Battery, or LG RESU added to an existing solar system qualifies for the full 30% credit. Battery costs entered into this calculator are added to your system cost basis. The battery must be installed in your residence and must be charged primarily by renewable energy sources (per IRS Notice 2024-30 clarification). Most modern home batteries meet this requirement automatically.
Carryforward Rules — What If Your Tax Liability Is Too Low?
The Residential Clean Energy Credit is nonrefundable — it can reduce your federal tax to zero but will not generate a refund check. However, any unused credit carries forward to future tax years indefinitely (until 2034 for the 30% credit, then through the step-down years). Example: a $9,000 credit on a $30,000 system, with only $5,000 in tax liability this year, leaves $4,000 carrying forward to next year's return. Use this calculator to model your specific situation. Per the IRS Form 5695 instructions, claim the credit using Part I of Form 5695 in the year your system is placed in service (commissioned, not just contracted). Last updated May 2026.
What the Solar Credit Does NOT Cover
The 30% credit does not cover: rental properties (only your primary or secondary U.S. residence), expenses for landscaping or tree removal even if needed for solar access, structural reinforcements unrelated to solar mounting, financing costs or interest paid on solar loans, and roof replacement costs except for the portion specifically required as a structural component of the solar installation (like solar shingles where the roofing material itself is the solar panel). If you finance the system with a $0-down loan, you still claim the credit on the full cash price — the IRS does not reduce the credit for financed installations. Note that solar leases and Power Purchase Agreements (PPAs) do not qualify for the homeowner credit because the third-party owner claims the commercial ITC instead.