Federal Residential Clean Energy Credit (Solar / 25D)

IRS / Inflation Reduction Act

Closed Home Repair

About This Program

Note: Congress ended this federal tax credit for installations after December 31, 2025. Projects placed in service by that date can still be claimed on your 2025 federal return (IRS Form 5695).

The IRS Section 25D Residential Clean Energy Credit provides a 30% federal tax credit on the full cost of installing solar panels, solar water heaters, battery storage, geothermal heat pumps, and small wind turbines for installations completed by December 31, 2025 (drops to 26% in 2033, 22% in 2034). Florida also exempts solar systems from property taxes and sales tax. The average Miami solar installation of 8-10 kW costs approximately $22,000-$28,000, generating a credit of roughly $6,600-$8,400.

Tax credit, not a rebate, reduces federal taxes owed. Unused credit carries forward to future tax years. Florida also provides: 100% property tax exemption on solar system value and 6% sales tax exemption on solar equipment.

Official program page checked live on 2026-06-22.

Data last verified 2026-04-03. How we verify our data.

In Miami, FL, you can combine this program with other local help to cut your cost:

Key Details

  • 30% federal tax credit on solar panels, battery storage, and geothermal systems
  • No dollar cap, applies to full installation cost
  • Florida adds: property tax exemption on solar system value + sales tax exemption
  • Average Miami solar install: ~$22,000-$28,000 → credit of ~$6,600-$8,400
  • Claim on IRS Form 5695; credit carries forward if not used in one year

How to Apply

A grant-savvy contractor in Miami, FL can handle the paperwork, inspections, and timelines so your funding releases on schedule. Getting matched is free.

You will likely need a contractor to apply

Projects like this almost always need a licensed contractor, and many grants ask for a written estimate as part of your application. Lining up a contractor in Miami early keeps your application moving.

Get matched with a contractor

Each program sets its own contractor rules. Check the official program page for exact requirements.

Your application paperwork

Form to file: IRS Form 5695

This is a federal tax credit, not a grant you apply for. You claim 30 percent of the cost of a qualifying solar or clean energy system on your federal tax return using Form 5695.

Steps to apply

  1. Have your solar or clean energy system installed and pay for it.
  2. Keep the itemized invoice and proof of payment.
  3. Complete IRS Form 5695 and file it with your Form 1040 for the year the system was placed in service.
  4. If the credit is larger than your tax bill, carry the unused amount forward to next year.

Documents you will likely need

  • Itemized invoice from your installer showing the system cost.
  • Proof of payment.
  • Manufacturer certification statement for the equipment.
  • Your federal tax return (Form 1040) for the year of installation.

Requirements vary by program and locality. Confirm the exact rules on the official program page. We can help you prepare your paperwork, but you submit it yourself.

Deadline: Ended December 31, 2025 (federal law change)

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