Solar Heating Information Library

Solar Tax Benefits

Federal government solar heating programs offer tax credits of up to 30% of a system's cost.

State and local governments may offer additional incentives.

Solar Tax Credits

Currently there is a Federal Tax Credit for most Solar Thermal systems. The credit is redeemed by the customer when filing their tax return at the end of the year:

  • Residential = 30% of the installed system cost with no maximum
  • Commercial = 30% of the installed system cost with no maximum

Criteria:

  • The system must offset over 50% of the building's annual hot water load
  • Pool and hot tub systems are excluded from rebate
  • Components must be certified by the Solar Rating and Certification Corporation (SRCC)