Clean Electricity Investment Tax Credits for Your Home

Funding for: ,

What does this funding get me?

Pays back up to 30% of the cost of solar, wind, geothermal, and battery storage.

Am I eligible?

You are eligible if you pay taxes and the home where the clean energy systems are installed is your principal residence. This includes renters, although you would need the permission of your landlord to install the systems.

How can I access the money?

You pay for the equipment upfront with cash or a loan, then file Form 5695 with your Federal tax return for the year in which you installed the equipment. This will reduce the amount of tax you pay by 30% of the cost of the equipment. 

If that amount is more than the tax you owe that year, you can carry over the unused part of the credit to future years’ tax returns.

What is the timeline?

The 30% credit is available every year through 2032, after which it will gradually phase out (to 26% in 2033, 22% in 2034, and 0% in 2035).

You claim the credit on your tax return for the year in which your equipment became operational. For example, if your solar system is turned on at any time in 2024, you would claim the credit on your 2024 tax return, which is due April 15, 2025.

What other incentives could I use to help me accomplish my goals?

There may be new grants and loans available for low- to moderate-income homeowners  if North and South Carolina receive grant money they have applied for from the IRA’s Solar for All program:

Check the Database of State Incentives for Renewables & Efficiency (DSIRE) for additional incentives that may be offered by your state, local government, or utility, as well as important federal, state, and local policies. For questions regarding DSIRE, contact Justin Lindemann (NC Clean Energy Technology Center) at jplindem@ncsu.edu.

Where can I get more information?

  • For specific questions on this program or for more assistance, contact Sally Robertson at info@energyfundsforall.org. Please note this contact is not a certified tax professional.