New home / energy credits

ShariQuilts — Tue, 24 Feb 2026 07:37:58 GMT

My husband and I purchased a new home this year, and also installed solar panels. We are both 65 and employed full-time. What are the energy credits for installing solar panels, and do you take the entire credit the year of purchase/installation?

Re: New home / energy credits

SwapnaM — Wed, 25 Oct 2023 16:23:01 GMT

@ShariQuilts Thanks for the question!!

In August 2022, Congress passed an extension of the ITC, raising it to 30% for the installation of which was between 2022-2032When you purchase solar equipment for your home and have tax liability, you generally can claim a solar tax credit to lower your tax bill. The Residential Clean Energy Credit is non-refundable meaning that it can offset your income tax liability dollar-for-dollar, but any excess credit won’t be refunded. If the credit exceeds your tax liability for the year, you can “roll over” the unused portion to future years so long as the credit remains in effect.

To claim the Solar Energy Federal Tax credit, you need to complete and attach the IRS Form 5695 to your federal tax return.

You also cannot claim the credit if you bought but didn’t install the solar system. It must be placed in service during the year, meaning they must be installed and producing electricity.

You can find more information about the eligibility criteria & Expenses that qualify at What’s the Solar Energy Tax Credit? https://turbotax.intuit.com/tax-tips/going-green/federal-tax-credit-for-solar-energy/L7s9ZiB4D

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New home / energy credits

Re: New home / energy credits