Solar Tax Credit Calculator 2026 β Federal Residential Clean Energy Credit (25D)
Calculate your 30% federal solar tax credit for 2026. See your credit amount, carryforward schedule, and full payback period for your solar installation.
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Panels, inverter, wiring, mounting, and labor $
Powerwall or other battery β₯ 3 kWh β also gets 30% credit $
Federal income tax before credits β determines carryforward Examples:
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Federal Tax Credit (30%)
$0
Year 1 Usable Credit
$0
Carryforward to Year 2+
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Net System Cost After Credit
Credit Usage Schedule (5-Year)
| Year | Credit Used | Carryforward Remaining | Est. Electricity Savings | Cumulative Net Benefit |
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How to Use This Solar Tax Credit Calculator
Enter your total solar system cost (including installation labor), any battery storage cost, the installation year, and your estimated annual federal tax liability. The calculator shows your credit amount at the applicable rate, how much you can use in year 1 versus carry forward, and a 5-year schedule for using the full credit.
The Formula
Credit Rate: 30% (2022β2032), 26% (2033), 22% (2034)
Total Credit = (Solar System Cost + Battery Cost) Γ Credit Rate
Year 1 Usable = min(Total Credit, Annual Tax Liability)
Carryforward = Total Credit β Year 1 Usable
Annual Electricity Savings β System Cost Γ 10% (rough estimate)
Total Credit = (Solar System Cost + Battery Cost) Γ Credit Rate
Year 1 Usable = min(Total Credit, Annual Tax Liability)
Carryforward = Total Credit β Year 1 Usable
Annual Electricity Savings β System Cost Γ 10% (rough estimate)
Example
$30,000 solar system + $10,000 battery, installed 2026, $8,000 tax liability:
Total qualifying cost: $40,000
Credit at 30%: $40,000 Γ 30% = $12,000
Year 1 usable: min($12,000, $8,000) = $8,000
Carryforward to year 2: $12,000 β $8,000 = $4,000
Net cost after full credit: $40,000 β $12,000 = $28,000
Total qualifying cost: $40,000
Credit at 30%: $40,000 Γ 30% = $12,000
Year 1 usable: min($12,000, $8,000) = $8,000
Carryforward to year 2: $12,000 β $8,000 = $4,000
Net cost after full credit: $40,000 β $12,000 = $28,000
Extended
Solar ROI Analysis
Full payback timeline, 25-year savings projection, and breakeven year
Solar ROI Analysis
Enter your monthly electric bill to see full payback timeline, breakeven year, and 25-year savings projection.
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Average before going solar How much of your bill solar eliminates
25-Year ROI Projection
| Year | Annual Electricity Savings | Cumulative Savings | Cumulative Net (after system cost) |
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Payback Period (years)
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25-Year Total Savings
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Net Cost After Credit
0%
25-Year ROI
Frequently Asked Questions
What is the federal solar tax credit and how much is it in 2026?
The federal solar tax credit β officially the Residential Clean Energy Credit (Section 25D) β is 30% of the total cost of your solar panel system, including battery storage, for installations in 2022 through 2032. On a $25,000 system, that is a $7,500 credit. The rate stays at 30% through 2032, then drops to 26% in 2033 and 22% in 2034, before expiring for residential use in 2035.
Does the solar tax credit include battery storage?
Yes. Standalone battery storage systems (not connected to solar) qualify for the 30% credit starting in 2023. Batteries installed alongside solar panels have qualified since 2022. The battery must have a capacity of at least 3 kilowatt-hours. This includes popular systems like the Tesla Powerwall, Enphase IQ Battery, and LG RESU.
Is the solar tax credit refundable?
No, the Residential Clean Energy Credit is non-refundable. It can reduce your federal income tax liability to zero, but any excess credit is not paid out as a refund. However, unlike many non-refundable credits, any unused amount can be carried forward to future tax years indefinitely until used up β there is no expiration on the carryforward.
Is there an income limit for the solar tax credit?
No. There is no income limit for the federal solar tax credit (Section 25D). Any homeowner who installs a qualifying solar system on their primary or secondary residence can claim the full 30% credit regardless of income. You do need sufficient federal tax liability to use the credit in a given year β excess carries forward.
What installation costs qualify for the solar tax credit?
Qualifying costs include: solar panels or photovoltaic (PV) cells, inverters and wiring, mounting hardware and racking, energy storage devices (batteries β₯ 3 kWh), installation labor costs, and sales tax on qualifying equipment. Costs do not include roof repairs, structural upgrades, or any portion paid for by rebates or grants (those must be subtracted first).