Short answer: If your solar system was installed by December 31, 2025, you claim the 30% federal credit on your 2025 tax return with IRS Form 5695. Systems installed in 2026 or later don't qualify for the homeowner credit, which the 2025 federal budget law ended early. This guide walks you through claiming a 2025 install.
Who can still claim the credit
- You own the system (paid cash or financed with a loan)
- It was installed by December 31, 2025 (generally, when installation was complete)
- It's on a home you live in, in the United States
- You owe federal income tax (the credit reduces what you owe; unused credit carries forward)
Leased systems and PPAs don't qualify for you; the company that owns the system handles any credit.
Step 1: Gather your documents
- Signed contract and final invoice, showing equipment and labor
- Proof of payment, or your loan documents
- The date installation was completed (permit sign-off or utility permission-to-operate letter helps)
- Manufacturer certification statements for the equipment, if your installer provided them
Step 2: Add up eligible costs
Eligible costs generally include solar panels, inverters, racking, wiring, installation labor, permitting and inspection fees, and home battery storage installed in 2025. Roof repairs not needed for the solar system generally don't count. Subtract any utility rebate you received for the system.
Step 3: Complete IRS Form 5695
Form 5695, Part I (Residential Clean Energy Credit), is where you enter your solar and battery costs. The form multiplies them by 30% and accounts for any credit carried forward from earlier years. The result goes on Schedule 3 and then your Form 1040.
Step 4: Carry forward anything unused
If the credit is bigger than your tax bill, the rest carries forward to future years. Keep a copy of Form 5695 so you can track it.
Florida exemptions to check
- Sales tax: solar equipment is exempt from Florida's 6% sales tax. Your invoice shouldn't include it.
- Property tax: the value solar adds to your home is excluded from your assessment. Check with your county property appraiser that it's been applied.
Common mistakes
- Claiming in the wrong tax year (it's the year installation was completed)
- Claiming for a leased system
- Assuming a 2025 deposit qualifies a system installed in 2026; it generally doesn't
- Forgetting to carry forward unused credit
Frequently asked questions
My system was installed in 2026. Can I claim anything?
Not the federal homeowner credit. You still get Florida's sales-tax and property-tax exemptions and net-metering credits.
I missed the credit for an earlier install. Can I still claim it?
You may be able to amend that year's return. Ask a tax professional.
Questions about your system? Call us at (850) 737-5197.
General information, not tax advice. Talk to a tax professional about your situation.