Here’s a question we hear a lot at Solar Bear of Tampa: “If I get a battery with my solar panels, does that qualify for the solar tax credit, too?” Put simply, yes. Here’s what that means, how it works, and why now is the time to seriously consider adding storage to your solar setup.
A 30% Boost, Straight from the IRS
Thanks to the federal Residential Clean Energy Credit, you can claim 30% of the cost of battery storage systems—whether you install them alongside a new solar array or add them later as a standalone upgrade.
Yes, that includes the battery itself, plus installation costs, labor, and other eligible expenses. If you spent $10,000 on a battery, for example, that’s $3,000 right back in your pocket in the form of a tax credit. That’s a dollar-for-dollar credit against what you owe the IRS. And in a world where electricity costs are climbing, that’s more than helpful—it’s empowering.
What Qualifies? Here’s the Fine Print (In Plain English)
The federal tax credit isn’t unlimited. But the good news? The bar isn’t set unreasonably high either. Your system needs to meet these key requirements:
- Storage Capacity: The battery must have at least 3 kWh of capacity. (Most do. Just double-check.)
- New Gear Only: It has to be new, never used.
- Location Matters: The battery must be installed at a U.S. residence you own and live in (full-time or part-time). Rentals that you don’t live in don’t qualify.
- Timing Is Key: To get the full 30%, your system needs to be installed and placed in service before December 31, 2025. After that, the credit starts to phase down.
- Ownership Counts: You must own the system—meaning no leases or power purchase agreements (PPAs). Loans are fine.
How Do I Get the Credit?
You’ll need to file IRS Form 5695 when you do your taxes for the year your battery was installed. You’ll input your total qualifying costs, and the IRS will calculate your credit. If your tax bill is smaller than your credit, you can roll the unused amount forward to future tax years. That’s a nice cushion if you don’t owe much this year but still want to take full advantage. Still, we always recommend checking in with a tax professional—just to make sure every detail is in place and every dollar is counted.
Solar Storage Is Worth It, Especially in Tampa—We’ll Show You How
In Florida, we know all too well how one storm can knock out power for hours, days, or longer. Batteries give you back control when the grid goes down. At Solar Bear of Tampa, we’re seeing more families add batteries not just for security, but for savings too. Time-of-use rates, rising electric bills, and backup peace of mind? That’s a triple win, and the federal tax credit makes it all that much sweeter.
If you’ve been on the fence about adding a battery—or going solar at all—this incentive is a powerful reason to move forward. Want help running the numbers? Call us at (727) 353-3886 and let’s talk! We’re here to make it easy.