Solar Tax Credit Estimator

Free solar tax credit estimator: enter your US solar installation cost to estimate the federal Investment Tax Credit and your net cost after the credit.

Solar System Cost ($)

Installation Year

About this tool

The US federal Investment Tax Credit (ITC) lets homeowners subtract 30% of a solar installation's cost from their federal taxes - on a $25,000 system, that is $7,500 back. It is the single biggest reason rooftop solar pays for itself, and many buyers do not realise how large it is until they see the number.

This estimator applies the current ITC schedule to your quote in one click: the credit amount and your true net cost after claiming it. Use it to compare installer quotes honestly - a $28,000 quote at 30% off beats a $25,000 quote with no credit math done.

How to use

Enter your total solar installation cost (before incentives) and pick the installation year, since the credit steps down after 2032. Press Estimate Tax Credit.

You get the estimated federal credit in dollars and the net system cost after the credit. Remember this is a tax credit, not a rebate check: it reduces tax you owe, and any unused portion generally rolls forward to future years.

The math behind it

Federal ITC = system cost x credit rate (30% for 2026-2032, 26% for 2033, 22% for 2034 under current law). Net cost = system cost - credit.

State and local incentives stack on top - many states add their own credits, rebates, or property-tax exemptions that this federal-only estimate does not include.

Frequently asked questions

Do I get the solar tax credit as cash back?

No - it is a non-refundable tax credit that reduces your federal income tax bill. If your credit exceeds what you owe, the remainder typically rolls forward to the next tax year.

Can renters claim the solar tax credit?

Generally no: you must own the system (not lease it) and own the home. Leased systems let the leasing company claim the credit instead - one reason purchased systems often pencil out better.

Will the 30% rate definitely last through 2032?

That is the current federal schedule, but tax law can change with new legislation. This estimator uses the published rates - confirm the current rate with a tax professional before signing a contract.

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