What the credit is
The Residential Clean Energy Credit is a non-refundable federal tax credit worth 30% of the cost of a qualifying solar (and battery) installation on your primary or secondary U.S. residence. It runs at 30% through 2032, then steps down.
It covers panels, inverters, racking, wiring, permitting, labor, sales tax on equipment, and standalone battery storage of 3 kWh or larger — whether or not it is paired with solar.
Who qualifies
You must own the system (cash or loan — not a lease or PPA), owe federal income tax in the year the system is placed in service, and install it on a home you live in. Unused credit rolls forward to future tax years.
How to claim it
File IRS Form 5695 with your return for the tax year the system was commissioned. Keep the signed installer invoice and the permission-to-operate (PTO) letter from your utility on file.