The Residential Clean Energy Credit: What It Was and What Ended

The Residential Clean Energy Credit (Section 25D) was a federal tax credit for homeowners who installed solar and other renewable energy systems. The credit ended Dec. 31, 2025. Homeowners who buy a system now cannot claim it.

What the credit was

Under the U.S. federal tax code, the credit was meant to encourage homeowners to add solar energy systems. It applied to solar-electric systems and solar water-heating systems installed in primary residences in the U.S., including existing homes and new construction.

For solar-electric systems, the credit covered costs such as labor for onsite preparation, assembly or original installation, and the wiring needed to connect the system to the home. For solar water-heating systems, at least half of the home’s water-heating capacity had to come from solar, and the system had to be certified by the Solar Rating Certification Corporation or a comparable entity endorsed by the state.

How homeowners claimed it

Homeowners claimed the credit by filing IRS Form 5695 with their federal tax return. The form calculated the credit, which was applied against the tax owed for the year. Homeowners who installed a system in 2025 or earlier can talk with a tax professional about how the credit applies to their returns.

What changed

The credit applied to systems installed through Dec. 31, 2025. A system bought or installed in 2026 or later does not qualify, so the credit should not be counted on when planning a new solar project.

What to do now

Florida homeowners who are thinking about solar can start with a free consultation. Solar22 can go over the options for the home. Call (813) 575-3200 to schedule.