Federal Tax Credit
The solar Federal Tax Credit is an incentive for homeowners investing in solar energy systems. Sunray and our representatives are not tax professionals. Therefore, if you have personal questions regarding the tax credit, please consult with your own tax professional to determine if you are eligible to claim the credit.
The tax credit is only available for customers who are paying for their system with cash or financing with a loan. Customers utilizing Lease or Power Purchase Agreement (PPA) options will not be eligible to claim the tax credit. Learn more about available finance options here.
Here are some frequently asked questions about the solar tax credit:
Frequently Asked Questions (FAQ)
As of August 2022, the tax credit is 30% of the total project cost.
The tax credit is available until 2032 at 30%, after which it is scheduled to gradually decrease to 26% in 2033 and 22% in 2034.
No, Sunray cannot promise the tax credit to customers unless. We cannot legally guarantee that they will be able to claim the full credit. It’s best to speak to your tax professional regarding your ability to claim the tax credit.
To claim the tax credit, customers should use a copy of their installation agreement as a receipt of purchase. If you file your own taxes, you can find the tax form (5695) on the IRS website.
Yes, co-borrowers can claim tax credits as long as they have the taxable liability. The co-borrower can generally claim the tax credit if the home where the solar was installed is their primary residence.
Yes, as long as the tax credit is still available, a customer can claim it over multiple years if necessary.
Yes, the tax credit can be applied to the costs of installing battery storage systems.
Different tax advisors may have different opinions on this matter, so it is recommended to have the customer check with their tax advisor.
Homeowners can claim the tax credit for separate solar systems or additions, but only once for the same solar array. The tax credit is limited to the primary residence, so if they move and install a new system, they can claim the credit again.
The tax credit is intended for the primary residence of where the customer lives. If they have a vacation home, they can claim the tax credit for solar on that home based on the portion of the year they occupy it.
Yes, the tax credit is tied to the individual and not specifically to the home. A new homeowner adding a new system can also claim a tax credit for the new installation.