Discover how federal tax credits, state incentives, and flexible financing options can reduce your solar costs by 30-50% or more.
The Investment Tax Credit (ITC) allows you to deduct 30% of your solar system costs from your federal taxes - no income limits or caps.
Available to all taxpayers regardless of income level
30% credit applies to the full system cost, no maximum limit
Unused credits can be carried forward to future tax years
Stack additional savings on top of federal tax credits with state rebates, local incentives, and utility programs.
Direct cash back from utilities or state programs, typically $500-$3,000+
State tax credits ranging from 5-25% of system cost
Solar Renewable Energy Certificates providing ongoing income
Exemptions preventing solar from increasing property taxes
Your meter runs backward when you produce excess energy, giving you credit for later use.
Most states credit you at the full retail rate you pay for electricity.
Unused credits typically roll over month-to-month with annual true-up.
Incentives vary by location and change frequently. Get a personalized analysis of all available programs in your area.
Choose the financing solution that fits your budget and goals - from $0 down options to cash purchases.
Own your system outright
Own with financing
Fixed monthly payment
Pay per kWh produced
Example for $25,000 system producing $1,500/year in savings
| Financing Option | Upfront Cost | Monthly Payment | Tax Credits | 25-Year Savings |
|---|---|---|---|---|
| Cash Purchase | $17,500* | $0 | $7,500 | $37,500+ |
| Solar Loan (6%) | $0-5,000 | $150-180 | $7,500 | $30,000+ |
| Solar Lease | $0-3,000 | $100-150 | $0 | $18,000+ |
| PPA | $0 | Varies | $0 | $15,000+ |
Our financing experts will analyze your situation and recommend the perfect financing solution based on your credit, budget, and savings goals.
Get answers to the most common questions about solar tax incentives and financing options.
You claim the federal solar tax credit using IRS Form 5695 when filing your annual tax return. The credit reduces your federal income tax dollar-for-dollar. If the credit exceeds your tax liability for the year, you can roll the unused portion to future tax years. Keep all receipts and documentation from your solar installation.
The solar tax credit is non-refundable, but it can be carried forward indefinitely. For example, if you owe $5,000 in taxes but have a $7,500 credit, you'd pay $0 taxes and carry the remaining $2,500 credit to next year. This makes solar accessible even for those with lower tax liability.
Yes, there are solar financing options for various credit levels. Solar loans are available for credit scores as low as 600-650. If your credit score is lower, you might consider solar leases or PPAs which don't require credit approval. Some programs also allow co-signers to help qualify for better rates.
Cash purchase provides maximum savings over time with no interest costs. However, solar loans allow you to go solar with little to no money down while still owning the system and receiving tax credits. If you can get a low-rate loan (under 4-6%), financing often makes sense even if you have cash available, as solar pays for itself quickly.
No, with solar leases and PPAs, the solar company owns the system and claims all tax credits. This is why these options typically offer lower long-term savings compared to ownership through cash purchase or loans. However, they provide immediate savings with no upfront costs and include maintenance coverage.
Solar loan terms typically range from 10-20 years, with 12-15 years being most common. Longer terms mean lower monthly payments but more interest paid over time. Many borrowers use their tax credit refund to make a principal payment in the first year, which can significantly reduce the total interest cost and payoff time.
The federal solar tax credit has no income limits - it's available to all taxpayers with sufficient tax liability. However, some state and local programs may have income requirements. Low-to-moderate income households may qualify for additional rebates, grants, or special financing programs designed to make solar more accessible.
With a solar loan, you own the system, so you have several options: 1) Pay off the loan with home sale proceeds, 2) Transfer the loan to the buyer if they qualify, or 3) Use the increased home value from solar to cover the loan payoff. Since solar typically increases home value more than the remaining loan balance, this usually works in your favor.
Our certified solar advisors can analyze your specific situation and recommend the optimal combination of incentives and financing for maximum savings.