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posted Jul 4, 2025 3:19:53 PM

Is Tax Credit Available for Replacing Failed Solar System

My solar system was installed in 2020. The system has failed and no longer generates power. The system is proprietary, and the company went bankrupt with no provision for servicing existing systems. I am unable to repair the existing system and am going to have to remove the old non-functioning system and replace it with a new system of slightly more capacity. Is the 30% tax credit available on the new system?

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Level 15
Jul 4, 2025 4:04:38 PM

Yes, adding a new system for solar power qualifies for the 30% tax credit for 2025.  It does not matter that you had a previous system.

 

However, the law that just passed today eliminates the solar credit after 2025.  That means it will need to be placed in service before December 31st, 2025.