It depends. The solar credit is used to lower tax liability and is non-refundable. If your liabiltiy equals to your solar credit, the full credit will be used to offset your tax liability. Otherwise, it will be carryforward to the following year.
The investment tax credit (ITC), also known as the federal solar tax credit, allows you to deduct 30 percent in 2019 (26% in 2020) of the cost of installing a solar energy system from your federal taxes. The ITC applies to both residential and commercial systems, and there is no cap on its value Anyone who does not owe federal income taxes will not be able to benefit from the solar tax credit.
