What is the solar federal tax credit?

The 26 percent federal solar tax credit was extended throughout 2021 and 2022 and will decrease to 22 percent in 2023 before it expires completely in 2024.

The solar federal tax credit is a 26 percent credit on your purchase and installation of solar panels. This is a dollar-for-dollar amount taken directly off your tax payment, rather than as a deduction from your taxable income. So, it’s given to you in addition to any refund you’re owed. Depending on your location, there may also be other incentives such as state tax credits, utility grants, or production-based incentives. Icon Solar can help you find all incentives available to you.