I signed a contract to finance my solar panel system in December 2022, but it was not installed until January 2023. Is it eligible for tax credit on 2022 tax returns?

[PattiF]

No, you will be eligible for the tax credit in 2023 when the installation was completed.

Please see the IRS instructions for Form 5695:

Costs.

For purposes of both credits, costs are treated as being paid when the original installation of the item is completed, or, in the case of costs connected with the reconstruction of your home, when your original use of the reconstructed home begins. For purposes of the residential clean energy credit only, costs connected with the construction of a home are treated as being paid when your original use of the constructed home begins. If less than 80% of the use of an item is for nonbusiness purposes, only that portion of the costs that is allocable to the nonbusiness use can be used to determine either credit.