Federal Residential Clean Energy Credit (25D)

IRS / U.S. Federal Government

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 25D Residential Clean Energy Credit provides a 30% nonrefundable federal income tax credit for qualified clean energy installations including solar panels, battery storage, geothermal heat pumps, small wind turbines, and fuel cells installed through December 31, 2025. The credit was terminated for residential ownership after Dec 31, 2025, by the One Big Beautiful Bill signed July 4, 2025. Unused credit can be carried forward to future tax years. For 2026 solar, explore lease/PPA options that may still qualify under business credits.

Claim on IRS Form 5695. Credit is nonrefundable, reduces tax owed but not below zero. Carry forward excess to future years. Solar credit for residential ownership expired Dec 31, 2025.

Verified against IRS / U.S. Federal Government's official page on 2026-06-17.

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

Key Details

  • 30% federal tax credit for solar, battery, geothermal, wind installations
  • No dollar cap except for fuel cell property
  • Credit expired for residential ownership after December 31, 2025
  • Nonrefundable, unused credit carries forward to future tax years
  • Claim on IRS Form 5695 when filing 2025 taxes

How to Apply

A grant-savvy contractor in Phoenix, AZ 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 Phoenix 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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