The federal investment tax credit (ITC), sometimes referred to as the solar tax credit, allows you to deduct a percent of the total cost of installing a solar energy system from your federal taxes. There is no cap on the value, and the credit applies to both residential and commercial installations.

The credit percentage is currently at 26%, however, it will be reduced to 22% starting in 2023 before expiring in 2024 for residential installations.

After 2024, there will be a permanent credit of 10% for commercial systems only.