IRS Residential Clean Energy Credit (25D)

Internal Revenue Service

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 Section 25D Residential Clean Energy Credit provides a 30% federal tax credit for installations completed by December 31, 2025 on the cost of qualifying clean energy property including solar electric panels, solar water heaters, wind turbines, geothermal heat pumps, fuel cells, and battery storage (3 kWh minimum). There is no annual or lifetime dollar limit, and unused credits can carry forward to future tax years. No income limit applies.

No income limit; claim on IRS Form 5695; credit is non-refundable but carryforward allowed; must be primary residence or qualified second home; does not apply to rental property

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

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

This is a national program. In San Diego, CA, you can stack it with local programs like these:

Key Details

  • 30% credit for installations completed by December 31, 2025, no dollar cap on qualified clean energy systems
  • Covers solar panels, solar water heaters, geothermal, wind, battery storage
  • Battery storage qualifies (minimum 3 kWh capacity) starting in 2023
  • No income limit; carryforward unused credit to future tax years
  • File IRS Form 5695; applies to primary or qualified second homes only

How to Apply

Get free help applying Visit Official Program Page Track this program

1-800-829-1040

A grant-savvy contractor in San Diego, CA 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 San Diego 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.
Get the official formDownload the fillable PDF

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.
Download this checklist (PDF)

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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