Guide to the Solar Federal Tax Credit (ITC)

Guide to the Solar Federal Tax Credit (ITC)

Estimated reading time: 2 minutes 

Important: Project Solar does not offer tax advice. We recommend contacting a tax professional for full information on incentives.

The federal government has been interested in solar since the 70s, and if you haven't heard yet, they want to pay for 30% of your solar build-out. 

It's an amazing offer that's gone through a lot of changes, but currently it's available to corporate/utility-scale projects only, as the home solar credit expired at the end of 2025. Luckily, Project Solar offers a new program that allows you to utilize these utility-scale credits. 

The best part? This program pre-funds the credit, bringing the upfront/financed cost down 30%. No need to file forms and wait for the credit to bring down your tax liability--just instant savings. 





A common question - Can Project Solar systems qualify for the federal tax incentives? 

Yes--although the residential credit has expired, through our new pre-funded incentive program, you can utilize a 30% credit usually reserved for large corporations. 

The tax credit has no limit, so you can size the system as large as you want and reap the full benefits. 

As of 2025, the average Project Solar customer saves $6,000 thanks to this credit.  

Project Solar builds qualify for the federal solar tax incentive

To be personally eligible for the expired residential "nonrefundable" ITC credit, you were required to have taxable income and tax liability. The 30% credit would then be applied to your tax liability, not provided as a discount or a direct refund. 

If what you owed in a year was not equal or greater than the 30% of your solar project, your credit would be carried over to future years.

How to Get the Tax Credit

To utilize the 30% solar tax credit for businesses, use Project Solar's pre-funded program.


Project Solar works with a financing company called HDM to aggregate residential projects and therefore leverage utility-scale incentives. This allows the tax credit to be deducted from the upfront or financed cost for homeowners. Currently, this offer is not available in all areas, but we are working to expand it as soon as possible. 

For full information on incentives and eligibility, contact a tax professional. Get started with Project Solar now by using our free quote estimator: 

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