US Home Improvement Incentive
Residential Clean Energy Credit
A federal income-tax credit equal to 30% of the cost of solar panels, battery storage, solar water heating, and geothermal systems — with no annual dollar cap.
Overview
What is the 25D Credit?
The Residential Clean Energy Credit is administered by IRS and available to eligible properties in United States (federal). It is designed to help homeowners reduce the upfront cost of energy-efficient and clean-energy improvements — supporting US climate goals while lowering household energy bills.
This scheme supports installations including Solar.
Eligibility
Am I eligible?
- You must own the home where the system is installed (it can be a primary or secondary residence in the United States).
- Qualifying systems include solar PV, solar water heating, geothermal heat pumps, small wind, and battery storage with a capacity of at least 3 kWh.
- Equipment must be new and placed in service during the tax year you claim it.
- There is no income limit and no maximum dollar cap on the credit.
- The credit is nonrefundable but any unused amount can be carried forward to future tax years.
Not sure if you qualify? A free home assessment from one of our licensed contractors will confirm your eligibility and identify every incentive you can access.
Process
How it works
- 1
Purchase and install a qualifying clean-energy system on your home.
- 2
Keep itemized invoices showing the system cost, including labor for on-site installation.
- 3
File IRS Form 5695 with your federal income-tax return for the year the system was placed in service.
- 4
Claim 30% of the eligible cost; carry any unused credit forward if it exceeds your tax liability.
Covered upgrades
Which upgrades does it cover?
Scheme deadline: 31 December 2034
This incentive is available until 31 December 2034. Contractor slots fill up quickly — we recommend requesting quotes as early as possible to avoid missing the deadline.
