Federal Incentive Program
5 min read

Federal Tax Credit for Homeowners

Published on 
June 7, 2024

As the efficiency and popularity of solar panels rise, so do questions about the federal tax credit homeowners can use to help alleviate the costs associated with solar installation. To prompt more people to use solar power, the U.S. government is offering attractive tax credit incentives. TENCO SOLAR can walk you through all the benefits of solar panel installation, including the savings from the federal tax credit.

What Is The Federal Tax Credit For Solar?

The federal tax credit for solar is a tax credit that homeowners can claim on their federal income taxes for a percentage of what it costs to install a solar panel system. Installations must occur during the tax year you wish to issue the claim, and the system must be shown to generate electricity for a U.S. home. As of right now, solar panel systems installed between 2020 to 2022 qualify for a 30% credit, 22% for systems in 2023, and 30% for systems installed before 2019. Act fast! The tax credit is set to expire in 2024 unless Congress renews it.

For the average homeowner, this tax credit equates to a 22%, 30%, or 30% discount on the total cost of your home solar system.

How Can I Use Federal Tax Credit For Solar Panel Installation?

Eligibility for the federal tax credit depends on when your solar panel system was installed. If you installed (or will install) your system between January 2006 and December 2023, you meet the first tier of eligibility.


Other factors that determine your qualification for a tax credit include:

  • The solar panel system is in your primary/secondary U.S. residence.
  • You own the solar panel system. Claims are denied for those that lease a system from a third party.
  • The credit you are seeking is for an original installation of solar equipment, i.e., the system is new and unused.


  • Solar equipment
  • Shipping/delivery costs
  • Solar consultation fees
  • Contractor and professional installation fees
  • Tools and installation equipment purchased or rented
  • Material costs, such as wires, screws, bolts, nails, etc.
  • Permitting fees

After installation, maximize your solar panel investment with regular solar panel maintenance. TENCO SOLAR delivers solar panel maintenance to property owners throughout Southern California, so you can have peace of mind that you are using your solar panels correctly and efficiently.

Benefits Of Solar Panel Installation In Southern California

The benefits of solar panel installation are far-reaching. Not only is solar power a cost-effective alternative to traditional fuel sources, but solar power is a clean, renewable energy source you can always count on. Solar installation:

  • Improves the lives of customers and communities.
  • Lowers monthly utility bills.
  • Reduces your carbon footprint by generating electricity with zero emissions.
  • Supplies clean, reliable energy for free.
  • Increases your home’s value.
  • Offers federal income tax credits and state/local rebates.

Choose TENCO SOLAR For Solar Panel Services In Southern CA

TENCO SOLAR has been serving Southern California residents with impeccable solar services for more than two decades. TENCO SOLAR stands out from the competition because we employ masterfully trained technicians and promise high-quality craftsmanship with our 100% satisfaction guarantee and no-hassle warranty. Solar energy solutions are our whole business, and we are committed to providing superior service. Our industry experience qualifies us as your go-to solar services provider when you need one.

Experience eco-friendly energy solutions firsthand with the power of solar. Call 888-507-6937 or contact us online to learn more about how you could benefit from a solar installation in Southern California.

Learn How You Can Save, Contact TENCO SOLAR Today

Our solar energy experts can help you understand and take advantage of available tax benefits or other incentive programs for your project. Contact TENCO SOLAR to get started!

Get a Quote
Get a Quote

Contact Us

Don’t trust just any team with your solar panel installation needs. Contact us today to get professional solutions for your business or residential solar needs.

Phone Call Icon
(888) 507-6937
GPS Icon
700 N Valley St, Suite C, Anaheim, CA 92801