Federal tax incentives for solar
Find out what you need to know about the federal tax credit for solar electric systems. Maine Solar Solutions does not provide tax advice, and this is for informational use only. We strongly recommend you work with a professional tax preparer.
Important Update (May 2025):
A federal bill currently under review proposes eliminating the 30% solar and battery tax credit for residential systems installed after December 31, 2025. While this change is not yet law, it may impact future eligibility. The 30% credit, as we list it below, remains in effect for now. We are monitoring the situation closely and will update this page as more information becomes available.
2022-2032
Now until 2032, a 30% federal tax credit applies to both residential and commercial solar electric systems, including battery storage. This credit is a dollar-for-dollar tax credit and will reduce the amount of tax owed by the system owner before any deductions are applied.
2033
Tax credit drops to 26%
2034
Tax credit drops to 22%
2035 onward
Starting in 2035, the federal tax credit will expire
Note: Unless Congress extends the program.
How it works
You pay for your system upfront (or with financing), then claim the credit when you file your taxes. So right now, solar electric customers who purchase their system at full price will earn a 30% tax credit and apply it to their liability when they file.
Financing options
In addition to the federal solar tax credit, financing your solar array is another way to make switching to solar more affordable. Learn more about options for financing solar here.
It pays to plan ahead
More Maine homeowners are going solar to achieve energy independence, see a return on investment, and protect themselves from increasing energy costs. That increase in interest has resulted in a rise in demand for solar installations—and we expect it to keep rising. Since solar requires licensed electricians and skilled installers, reputable companies like ours can book out months in advance. If you’re considering solar, now is the time to start the conversation and get on the schedule.
At Maine Solar Solutions, we offer free solar site assessments and consultations. They’re educational, pressure-free, and tailored to your home and goals. We also offer low-interest financing options so you can go solar with little to no upfront cost.
Let us design the right system for you
Our team is here to help you choose the right solar and battery backup solution for your home. If you’re ready to take the next step, reach out to schedule your free site assessment.
