Do I file for the solar credit for 2023 taxes if solar was purchased and installed in 2023, but was not activated or producing energy until 2024?

You may need to wait until 2024 to claim the Solar Energy Credit.

 

You might be eligible for this tax credit if you meet the following criteria:

• Your solar PV system was installed between January 1, 2017, and December 31, 2034.
• The solar PV system is located at your primary or secondary residence in the United States, or for an off-site community solar project, if the electricity generated is credited against, and doesn’t exceed, your home’s electricity consumption.
• You own the solar PV system (i.e., you purchased it with cash or through financing, but you are neither leasing nor are in an arrangement to purchase electricity generated by a system you don’t own).
• The solar PV system is new or being used for the first time, because the credit can only be claimed on the “original installation” of the solar equipment.

You don’t necessarily have to be a homeowner to claim the tax credit, but you have to be the owner of the solar system itself, which means you can’t claim the credit if you’re a renter and your landlord installs a solar system.

 

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.

 

A solar PV system does not necessarily have to be connected to the electric grid for you to claim the residential federal solar tax credit, as long as it is generating electricity for use at your residence

 

Office of Energy Efficiency & Renewable Energy - Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics

Hello,

I have installed and got PTO (Permission To Operate) in year 2024, but I didn't fully pay-off to installer as there are some open issues needs to be fixed. So can I submit this for this year(2025) tax bracket?

Thanks.

It would appear the installation was not complete until 2025 so yes, you would claim the credit for tax year 2025.  The instructions for form 5695 here state, "...costs are treated as being paid when the original installation of the item is completed,..."