The primary driver for residential solar ROI in 2024 is the **Residential Clean Energy Credit**, commonly known as the Investment Tax Credit or ITC.
30% Credit Mechanism
Under the Inflation Reduction Act, eligible homeowners can claim a tax credit equal to **30%** of the total cost of a qualifying solar PV system, including labor and battery storage.
Modeling assumption
GetSunScore models the 30% ITC as a scenario variable in our payback period calculations. We do not determine eligibility; homeowners should verify their tax status with a qualified professional.
ITC FAQ
No. It is a non-refundable tax credit, meaning it reduces the amount of federal income tax you owe. It is not a direct cash payment or check from the government.
Yes, under current IRS rules for the 2024 tax year, if your tax credit exceeds your tax liability for the year you install solar, you can generally carry the remaining credit forward to reduce taxes in future years.