The Federal Tax Credit is a flat 30% of the system price to be credited towards your Federal Tax Liability in the year the system was interconnected and/or spread out over 5 years of tax returns if needed.
If you were to spend $50,000 on your solar system, you would have a 30% or a $15,000 tax credit to apply towards your annual tax liability.
Whether a person has the tax liability to utilize this credit or not is a key consideration on whether a person should buy, finance, or lease a system. See our solar finance article for more details on the impact of the tax credit on buy and lease options.
While solar remains competitive against grid power without this tax credit, it remains a significant component of how leasing companies lease solar and the ROI of buying a system.
While not a tax service, we will review the options of getting into solar with or without utilizing this credit.
For your convenience, you can download the Residential Energy Credits here..
IRS form f5695[1]