Residential Clean Energy Credit

These expenses may qualify if they meet requirements detailed on energy.gov:

• Solar, wind and geothermal power generation
• Solar water heaters
• Fuel cells
• Battery storage (beginning in 2023)

The amount of the credit you can take is a percentage of the total improvement expenses in the year of installation:

• 2022 to 2032: 30%, no annual maximum or lifetime limit
• 2033: 26%, no annual maximum or lifetime limit
• 2034: 22%, no annual maximum or lifetime limit

Get details on the Residential Clean Energy Credit.

EQUIPMENT TYPE	TAX CREDIT AVAILABLE FOR 2023-2032 TAX YEARS
Home Clean Electricity Products
Solar (electricity)	30% of cost
Fuel Cells
Wind Turbine
Battery Storage
Heating, Cooling, and Water Heating
Heat pumps	30% of cost, up to $2,000 per year
Heat pump water heaters
Biomass stoves
Geothermal heat pumps	30% of cost
Solar (water heating)
Efficient air conditioners*	30% of cost, up to $600
Efficient heating equipment*
Efficient water heating equipment*	30% of cost, up to $600
Other Energy Efficiency Upgrades
Electric panel or circuit upgrades for new electric equipment*	30% of cost, up to $600
Insulation materials*	30% of cost
Windows, including skylights*	30% of cost, up to $600
Exterior doors*	30% of cost, up to $500 for doors (up to $250 each)
Home Energy Audits*	30% of cost, up to $150
Home Electric Vehicle Charger	30% of cost, up to $1,000 **
* Subject to cap of $1200/year  ** See eligibility requirements from IRS here and a map of eligible locations

Q: Who is eligible for tax credits? 
A: Homeowners, including renters for certain expenditures, who purchase energy and other efficient appliances and products. 

Q: What do consumers do to get the credit(s)? 
A: Fill out IRS Form 5695, following IRS instructions, and include it when filing your tax return. Include any relevant product and services receipts. 

Q: Are there limits to what consumers can claim? 
A: Consumers can claim the same or varying credits year after year with new products purchased, but some credits have an annual limit. See the table above. 

Q: How do I know if my Home Energy Audit is eligible for a credit? 
A: Consumers can visit this IRS page on the Energy Efficient Home Improvement Credit. 

Q: What products are eligible for tax credits? 

• Home clean electricity products
  • Solar panels for electricity from a provider in your area. 
  • Home back-up power battery storage with capacity of 3 kWh or greater. 
• Heating, cooling, and water heating
  • Electric or natural gas heat pumps; electric or natural gas heat pump water heaters; central air conditioners; natural gas or propane or oil water heaters; natural gas or propane or oil furnaces or hot water boilers that meet or exceed the specific efficiency tiers established by the Consortium for Energy Efficiency. Eligible products here: CEE Directory. 
  • Solar water heating products that are certified for performance by the Solar Rating Certification Corporation or comparable entity endorsed by the state government in which product is installed. See: https://solar-rating.org. 
• Other energy efficiency upgrades
  • Oil furnaces or hot water boilers if they meet or exceed 2021 Energy Star efficiency criteria and are rated by the manufacturer for use with fuel blends at least 20% of the volume of which consists of an eligible fuel. See: https://www.energystar.gov/products. 
  • Panelboards, sub-panelboards, branch circuits, or feeders that are installed according to National Electrical Code and have load capacity of 200 amps or more. 
  • Insulation materials and systems that meet International Energy Conservation Code standards. See: Building Energy Codes Program. 
  • Exterior windows that meet Energy Star’s Most Efficient requirements. See: https://www.energystar.gov/products/most_efficient. 

Q: What if I have questions about products, standards, codes or other eligibility referenced above? 
A: Ask a trusted contractor, plumber, or electrician. 

Q: Where do I get even more detailed information? 
A: More information on the energy efficient home improvement credit and residential clean energy property credit is available for tax professionals, building contractors, and others. See:  

• IRS.gov/HomeEnergy 
• Department of Treasury Taxpayer Resource Hub 
• IRS FAQ about Energy Efficient Home Improvements and Residential Clean Energy Property Credits 

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