Have you been thinking about installing home solar panels for a while? Now is the time to take the plunge! The deadline for the 2024 solar tax credit is approaching fast. To claim the solar tax credit when you file your 2024 taxes, you must complete your solar panel installation by the end of the year. If you wait, you won’t see your tax savings until you file your 2025 taxes in early 2026—that’s more than a year away!
NJ Solar Power is the trusted residential solar installer in New Jersey with over 20 years of experience. We’ve installed thousands of solar energy systems and can help you maximize your tax credit savings. Keep reading to learn everything you need to know about the 2024 solar tax credit.
What Is the Solar Tax Credit for 2024?
The solar tax credit is an incentive that makes rooftop solar panels more affordable for homeowners. The tax credit is currently worth 30% of your total solar installation costs, with no maximum limit. The tax credit has been available for many years, but its value has fluctuated several times. It was recently resurrected by the Inflation Reduction Act and extended for several years, but it won’t be around forever.
| Year | Solar Tax Credit Amount |
| 2022-2032 | 30% |
| 2033 | 26% |
| 2034 | 22% |
| 2035 | 0% |
Who’s Eligible for the Solar Tax Credit in 2024?
Almost all residential solar panel and solar battery installations are eligible for the 2024 solar tax credit. These are the current qualification requirements:
You must install the system at your primary residence, located in the United States. The IRS defines your primary residence as a home where you lived in 2024, which could be a “house, houseboat, mobile home, cooperative apartment, condominium, or a manufactured home.”
You must own your solar energy system. If you buy your system in cash or finance it with a solar loan, you own it and are eligible for the tax credit. If you sign a solar lease, you do not own the system and therefore cannot receive the tax credit.
You must pay taxes. The solar tax credit is a credit, not a refund. To use it, you must have federal income tax liability.
Your system must be placed in service by December 31, 2024. To claim the solar tax credit on your 2024 taxes your solar panels and/or battery must be operational by the end of the year. If your installation is underway but not completed, you’ll have to wait until the following year to claim your credit. That’s why it’s so important to act fast!
Start Your New Jersey Solar Panel Installation Today
There’s never been a better time to go solar! Electricity is only getting more expensive. Meanwhile, solar installation costs are coming down thanks, in part, to incentives like the federal solar tax credit. NJ Solar Power is here to help you take control of your electric bills and make money with solar! Our goal is to make your solar system as profitable as humanly possible, starting with maximizing your tax credit. Reach out to us today to get your installation on the books before it’s too late to claim the 2024 solar tax credit—our schedule is filling up fast!