The federal solar tax credit provides a 30% credit against your federal income tax liability for the total cost of your solar installation. Thanks to the Inflation Reduction Act of 2022, this generous 30% rate is locked in through 2032, providing certainty for homeowners planning.
From 1 April 2026, export tax rebates of as much as 13% on solar products will be rolled back, while rebate rates on battery goods will be cut to 6% from 9%, with full phase-out scheduled on 1 January 2027, according to a joint announcement by the Ministry of Finance and the State.
Effective April 1, 2026, China will eliminate value-added tax (VAT) export rebates for photovoltaic (PV) products, including solar cells, modules, inverters, and related components. This follows a prior reduction from 13% to 9% in December 2024.
As of 2025, the federal ITC provides a 30% tax credit for qualified commercial solar installations. This rate is scheduled to remain at 30% through 2032, after which it will step down to 26% in 2033 and 22% in 2034.
When a state or locality has a property tax exemption for a solar system in place, your tax bill doesn't include the added property value from your solar panels.