Federal Incentives | Solar power tax credits

Introduced in 2005 as part of the Energy Policy Act of 2005, and improved through the Energy Improvement and Extension Act of 2008, the Residential Renewable Energy Tax Credit allows 30 percent credit on the residential solar electric system and its installation.

This is a tax credit, not cash in hand. For example if you have a $10,000 solar electric installation, you are eligible for $3,000 tax credit. Now if you owe the government $5,000 as tax, after receiving the tax credit you only owe the government $2,000. The tax credit can be rolled over completely or partially until 2016.

Federal Incentives | Who is eligible

If you have a solar lease or solar power purchase agreement (PPA) the credit will go to the company you’re working with.