Frequently asked questions about energy efficient home improvements and residential clean energy property credits - Residential Clean Energy Property Credit - Qualifying expenditures and credit amount

Updated FAQs were released to the public in Fact Sheet 2025-01 PDF, Jan. 17, 2025. This fact sheet contains all of the FAQs in one downloadable PDF.

Q1. What residential clean energy expenditures are eligible for the credit, and how much is the credit? (updated Jan. 17, 2025)

A1. The following expenditures are eligible for a Residential Clean Energy Credit of 30% of the cost:

• qualified solar electric property expenditures (solar panels);
• qualified solar water heating property expenditures (solar water heaters);
• qualified fuel cell property expenditures;
• qualified small wind energy property expenditures (wind turbines);
• qualified geothermal heat pump property expenditures; and
• qualified battery storage technology expenditures.

Q2. Are roofing expenditures that were necessary for the installation of solar panels eligible for the credit? (updated Jan. 17, 2025)

A2. In general, traditional roofing materials and structural components do not qualify for the credit because they primarily serve a roofing or structural function. However, some solar roofing tiles and solar roofing shingles serve as solar electric collectors while also performing the function of traditional roofing, serving both the functions of solar electric generation and structural support and such items qualify for the credit.

Q3. Is there a dollar limit on the credit? (updated Jan. 17, 2025)

A3. No, there is no overall dollar limit for the credit. The credit is generally limited to 30% of qualified expenditures made for property placed in service beginning in 2022 through 2032. However, the credit allowed for qualified fuel cell property expenditures is 30% of the expenditures up to a maximum credit of $500 for each half kilowatt of capacity of the qualified fuel cell property. In the case of a residence or dwelling unit that is jointly occupied by two or more individuals, the maximum amount of such fuel cell property expenditures used to calculate the credit amount for all individuals living in that dwelling unit during a calendar year is limited to $1,667 for each half kilowatt of capacity of qualified fuel cell property.