Solar Tax Credits
30% federal credit. Don't miss it.
Federal credit
- 30% off solar install costs.
- Includes panels, battery, inverters.
- Tax credit (not rebate) — reduces taxes owed.
- 2026 still 30%.
- Drops 26% in 2033, 22% in 2034.
- Use TurboTax Form 5695.
State + utility rebates
- Many states add 5-30% more.
- NY, MA, CA — generous.
- Net metering — sell excess to utility.
- SREC programs in some states.
- DSIRE (dsireusa.org) — state incentive search.
Worth it for seniors?
- Cost: $15K-30K typical 6-10 kW system.
- After credits: $10K-20K.
- Saves $1,500-3,000/yr electricity.
- Payback 5-12 years.
- Worth it if: long-term homeowner, sunny location.
- Less worth: shaded roof, planning to move.
Senior considerations
- Income-tax-credit only — must owe taxes.
- Carry forward unused credit.
- Adds home value (sometimes).
- 20-30 year roof needed.
- Fixed income benefits more.
- Adds complexity if home sold.
Pick installer
- Get 3+ quotes.
- NABCEP-certified installer.
- Local + been in business 5+ years.
- NEVER lease — own outright.
- Avoid pushy door-to-door salespeople.
- Read EnergySage reviews.
- Don't finance via solar company (high rates).
Solar leases = avoid
Solar leases / PPAs lock you in 20+ years. Tax credits go to LEASING company. Hard to sell home with lease attached. Senior tip: only OWN solar. Pay cash if can. Solar loan with credit union if not. Run from leases.