Yes, you're understanding the scenario correctly.
The Child Tax Credit (CTC) is applied first.
CTC is claimed on line 19 of Form 1040.
The credit for qualified solar electric property is claimed on Form 5695, Residential Energy Credits, and carried over to Schedule 3, line 5. This amount, and any other Schedule 3 Part I credits, is transferred to Form 1040, line 20.
Bear in mind that Residential Energy Credit can be carried forward if not used. Please see the Instructions for Form 5695 for more information.
