The 30% federal solar tax credit, also known as the Investment Tax Credit (ITC), is available to
homeowners across the United States, including Michigan. This credit drastically reduces the
cost of solar and battery storage, providing a stellar return on investment. Stellar Solar
Michigan is the most experienced solar and home battery provider in Michigan and utilizes that
experience to present all your options to take full advantage of the 30% Federal Solar Tax
Credit.
Here’s how it works:
Eligibility
You must own the solar energy system and the home (not lease it) and the system must be
installed on your primary or secondary residence. The credit applies to both residential roof
mount and residential ground mount systems. It can be applied the year the system is installed,
or you can defer it for a year if you do not have a tax liability.
Credit Amount
If you have a tax appetite, you can claim 30% of the total cost of the solar energy system as a
tax credit on your federal income taxes. Eligible costs include solar panels, inverters, mounting
hardware and racking, battery storage and installations costs. You can also apply the tax to a
battery only purchase. We advise you to discuss this tax credit with your tax professional to
ensure you have the proper guidance.
Timeframe
The 30% rate applies to systems installed between 2022 and 2032. The credit will decrease to
26% in 2033 and 22% in 2034, unless extended by Congress. Currently, all homeowners in
Michigan are potentially eligible for the full 30% tax credit and Stellar Solar Michigan can guide
you through the process.
How It Works
The tax credit reduces the federal taxes you owe, dollar-for-dollar. For example, if your solar
system costs $20,000, you could claim a $6,000 tax credit ($20,000 × 30%). If your tax liability is
less than the credit amount, you can roll over the unused portion to the next tax year, for as
long as the ITC is still in effect – it is scheduled to run through 2032.
Claiming the Credit
We recommend that all homeowners consult with their tax professional to ensure you qualify
for the Federal Solar Tax Credit. If so, you can file IRS Form 5695 as part of your federal tax
return and add the credit amount to your total residential energy credits.
Does Michigan offer any solar tax credits?
Michigan does not currently offer a statewide solar tax credit, but it has other programs that
can further reduce costs. In addition, some local rebates or incentives may be available
depending on your utility company or municipality. We encourage all homeowners to check
with their local municipality to see if incentives exist for residential solar power and battery
storage in Michigan.
Let Stellar Solar Michigan guide you through the process
Stellar Solar Michigan is the most experienced solar and home battery installer in Michigan,
with over 16,000 installations and in business over 25 years. We are also a Certified Premier
Tesla Powerwall installer. Our team can guide you through the entire process of going solar,
from initial consultation, presenting your final design, installation and activation of the system.
We can also provide guidance on the 30% Federal Solar Tax credit, and let you know if it makes
sense for you to take advantage of it.
Our energy consultants are the most experienced in the solar industry and always take an
educational approach, presenting all your options and suggesting what they think would be
your best solution.
When the time comes for you to go solar in Michigan, we hope you include us in your mix and
be considered among your top options for a solar and battery installer.