What is the federal solar tax credit and how much is it worth?

The Residential Clean Energy Credit equals 30% of the cost of eligible clean energy property, claimable annually until the phase-out begins in 2033 (IRS).

The Residential Clean Energy Credit equals 30% of the cost of qualified clean energy property — solar panels, solar water heaters, and certain battery storage — installed in a US home, with no dollar maximum stated for eligible equipment. The IRS states the credit can be claimed every year that eligible property is installed until the credit begins to phase out in 2033. It is a nonrefundable tax credit, so it reduces tax owed rather than producing a refund on its own. Keep manufacturer certifications and installation invoices; the credit is claimed on IRS Form 5695.