Residential Clean Energy Credit Calculator

The Residential Clean Energy Credit gives homeowners a federal income tax credit equal to 30 percent of the cost of qualifying clean energy property such as solar panels, solar water heaters, wind turbines, geothermal heat pumps, fuel cells, and battery storage. It is claimed on Form 5695 and applies to property placed in service in your home.

Multiply your total qualified property cost (including labor for installation and certain related improvements) by the 30 percent credit rate. For example, a $20,000 solar system yields a $6,000 credit. The credit rate is set at 30 percent for property placed in service through 2032 under the Inflation Reduction Act, then steps down.

For most qualifying property (solar, wind, geothermal, and battery storage of at least 3 kilowatt-hours), there is no annual dollar cap, only the 30 percent rate. Fuel cell property has a per-kilowatt limit. Because the credit is nonrefundable, the amount you can use in a year is limited to your tax liability, with the rest carried forward.

The Residential Clean Energy Credit is nonrefundable, so it can reduce your tax to zero but not generate a refund on its own. Any credit you cannot use because your tax is too low carries forward to future years. This calculator shows the full computed credit; your usable amount depends on your tax liability.

Generally no. The credit covers the clean energy property and directly related components and labor, but traditional roofing materials and structural components that primarily serve a roofing function usually do not qualify, even if a solar system is installed on top. Check the Form 5695 instructions for what counts as qualified expenditure.