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Residential Clean Energy Credit (25D) closed

Administered by the Internal Revenue Service.

The federal tax credit for solar panels, home batteries, geothermal heat pumps, solar water heaters, small wind and fuel cells: 30% of the cost, with no dollar cap. It is not available for anything placed in service after 31 December 2025.

source · verified 24 September 2026 · amounts in US dollars

What it pays

Ended: nothing placed in service after 31 December 2025 qualifies

The thing most pages get wrong

The IRS's own page contradicts itself. It says the credit "is not available for any property placed in service after December 31, 2025", then, a few lines later, that you can claim it every year "until the credit begins to phase out in 2033". The second sentence is left over from the old schedule. The end date is the one that holds.

What it paid

30% of the cost of new solar panels, solar water heaters, small wind turbines, geothermal heat pumps, battery storage of at least 3 kWh and fuel cells, labor included, with no annual or lifetime cap except for fuel cells. Owners and renters could claim it for a main home; second homes for everything but fuel cells.

If you installed in 2025

The credit is claimed for the year of installation, on Form 5695. Unlike the home improvement credit, any part you could not use carries forward to later years' taxes.

Sources