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Federal Clean Energy Incentives

The 30% Federal Solar Tax Credit: Complete Homeowner Savings Breakdown

By AD Solar Finance & Incentives Desk • CSLB License # B1027903 • Southern California

What is the 30% Federal Clean Energy Credit?

Under Section 25D of the Internal Revenue Code, the federal government allows homeowners who purchase and install clean energy systems to deduct 30% of total system installation costs directly from their federal income tax liability.

This is a dollar-for-dollar tax credit (not just a deduction), directly reducing the total taxes you owe to the IRS.

What Equipment Qualifies for the 30% Credit?

  • Solar Photovoltaic (PV) Panels & Inverters: Rooftop and ground-mount systems.
  • Energy Storage Batteries: Batteries with a capacity of 3 kWh or greater qualify for the full 30% credit (even if installed standalone).
  • Electrical Main Panel Upgrades: Upgrades necessary to support the solar and battery installation qualify.
  • Permitting & Labor Costs: Professional engineering, permitting fees, and installation labor are eligible.

Example Cost & Savings Calculation

Gross System Cost (Solar + Battery): $30,000
Less 30% Federal Tax Credit: -$9,000
Net Out-Of-Pocket Investment: $21,000

Get a Custom Tax Credit Savings Estimate

Speak with our energy consultants to calculate your exact equipment costs and tax credit eligibility.

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