@rand90210....
look at form 1040, specifically lines 18 and 20.... it's the same line numbers for 2021 and 2022 to use as the example. the solar credit goes on Line 20.
the solar credit you are able to take on your taxes is the lower of Line 18 or Line 20
if Line 20 is lower than Line 18, you can take the whole credit in one year.
if Line 18 is lower than Line 20, the remainder gets carried over to the following year. (you'll see that Line 22 can't be less than zero)
it has nothing to do with your withholdings.
suggest making a copy of your 2021 form 1040 and manually make the adjustments noted above and you'll see what happens to your refund / amount due..... also note nothing in the 'payments' section changes.
your understanding in the last paragraph ("based on what I am reading.....) of your post is accurate!
