Solar Panel Tax Credits 2024. Here’s an example of how the solar tax credit works: The solar tax credit, which is among several federal residential clean energy credits available through 2032, allows homeowners to subtract 30 percent of the cost of installing solar.

The federal solar investment tax credit (itc) offers a direct reduction in taxes owed as an incentive for installing a new solar energy system. The federal solar tax credit lowers your tax liability for qualifying solar system expenses.