Definition
A federal tax credit that allows you to deduct 30% of the cost of installing a solar energy system from your federal taxes. The 30% rate is available through 2032, then steps down to 26% in 2033 and 22% in 2034.
Related Solar Terms
- Photovoltaic (PV)
The technology that converts sunlight directly into electricity using semiconduc...
- Kilowatt (kW)
A unit of electrical power equal to 1,000 watts. Residential solar systems are t...
- Kilowatt-Hour (kWh)
A unit of electrical energy equal to one kilowatt of power sustained for one hou...
- Net Metering
A billing arrangement where excess solar electricity sent to the grid earns cred...
- Inverter
A device that converts the DC (direct current) electricity produced by solar pan...
Understanding solar terminology helps you communicate more effectively with installers and evaluate quotes accurately. Use our solar cost database to find fair prices for any solar service.