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Level 2
September 3, 2025
Question

clean energy credit for solar in 2025

  • September 3, 2025
  • 5 replies
  • 56 views

Can you claim the credit for newly installed solar panels as soon as they are installed and paid for?

or do you have to wait for the utility company to recognize them on the grid?

 

Form 5695 appears to indicate you have to wait for the solar system to be in service and generating power.

 

"File Form 5695, Residential Energy Credits when you file your tax return for year in which your residential energy property was put in service.

 

thanks!

    5 replies

    Level 15
    September 3, 2025

    @user17569064898 wrote:

    "File Form 5695, Residential Energy Credits when you file your tax return for year in which your residential energy property was put in service.


     

    I'm curious where you are seeing the sentence.

     

    At any rate, the law says "when the original installation of the item is completed".  My interpretation of that is that the credit applies when it is installed, regardless if the utility company has approved it or not.

    Level 2
    September 3, 2025

    I'm seeing that language in  

    https://www.irs.gov/pub/irs-pdf/p5977.pdf

     

    which is referenced at the bottom of the IRS page explaining the Residential Clean Energy Credit

    https://www.irs.gov/credits-deductions/residen[product key removed]y-credit 

    Level 15
    September 3, 2025

    Interesting.  At any rate, that is not how the law phrases it, as I mentioned before.