I'm looking into installing solar panels in 2025 and I've heard there's a federal tax credit of 30%. I plan on doing most of the installation myself, but my electrician will connect everything to the grid for about $4,500. My estimated equipment and material costs are around $9,000, which includes mounting hardware. If I do everything myself, I might hire a few people for additional help, which could cost around $2,000. I also need to budget $1,500 for permits and drawings. My question is about how to make sure I get the most out of this tax credit:
1. If I keep all my receipts and documentation, can I claim 30% of the total cost ($17,000 = $4,500 + $9,000 + $2,000 + $1,500)?
2. If I handle the mounting of the solar panels myself, can I still claim the tax credit for that part, or is it limited to what I pay the electrician?
2 Answers
Just a heads up, while you can claim costs for panel installation, be careful with the electrical panel. Costs attached to standard electrical panels might not count as they’re not specifically for solar use. But if you need a special one for the solar, the additional cost could qualify. Just ensure that any hired help is specifically for installing solar components to be eligible for the credit. Also, keep in mind the December 31, 2025, deadline!
1. Yes, you can definitely claim 30% of the total costs if you keep all your documentation.
2. Not entirely! You can include costs for panels and installation materials even if you DIY some parts. Just remember, you won't get credit for any unpaid labor—meaning you can't claim your own time spent installing. You’ll only claim what you actually paid for.
Thanks! This really clears things up for me. I'll definitely document everything.
Got it! So I should look for a solar-ready panel. I’ll try to find a local company that can invoice me for the work, too. Thanks!