The federal Residential Clean Energy Credit covers 30% of your solar and battery costs — locked through 2032. Teamsun provides the cost basis your CPA needs to claim it on Form 5695.
By the numbers
Not tax advice
This page summarizes the federal Residential Clean Energy Credit at a high level. Teamsun provides the cost-basis documentation and system specifications your tax preparer needs to file IRS Form 5695, but we do not give tax advice. Your situation may differ — always consult a qualified CPA before claiming any federal tax credit.
The IRS treats the eligible cost basis broadly — equipment, labor, and the soft costs required to put the system in service. Roof replacement and unrelated electrical work are excluded.
Panels, inverters, racking, conduit, monitoring hardware, and all wiring required to make the system work.
Batteries 3 kWh or larger qualify — including standalone batteries with no solar attached, per the Inflation Reduction Act.
On-roof labor, electrical work, permitting fees, and inspection costs — every line on your Teamsun invoice that is part of installing the system.
Sales tax paid on eligible equipment is included in the cost basis. Connecticut exempts solar from sales tax outright; MA and RI handle it differently.
The credit is claimed once, in the tax year your system receives Permission to Operate. Your CPA files; we hand you everything they need.
Your Teamsun system is commissioned and receives Permission to Operate (PTO) from your utility. The credit is claimed in the tax year your system goes live.
Teamsun provides a single-page cost-basis document showing every eligible expense — equipment, labor, permits, sales tax — with your invoice and system specs attached.
Your tax preparer fills out IRS Form 5695 using our cost-basis document, claiming 30% of eligible costs as a non-refundable credit on your federal return.
If the credit exceeds your tax liability in year one, the remainder carries forward to future tax years. Speak with your CPA about your specific carryforward situation.
The four documents on every Teamsun project file. Sent to you in PDF on the day your system goes live.
Single-page summary of eligible costs, broken out by category — exactly what your CPA needs for Form 5695.
Panel make and model, inverter model, battery capacity, system-level kW DC and AC ratings — required for the IRS to substantiate the credit.
Your PTO letter from the utility, which establishes the tax year for claiming the credit.
If your return is ever audited regarding the solar credit, Teamsun provides supporting documentation directly. You do not chase us for paperwork five years later.
“Teamsun was the only crew that walked the roof, named the panel brand, and answered every question without checking with someone. Same lead tech came back a year later when I added a battery.”
“Three of my neighbors had Teamsun, so I called them. The crew was on my street five days after I signed.”
“They knew the historic district secretary by first name. Saved us six weeks on permitting alone.”
“Same lead tech who installed it came back four years later to swap an inverter under warranty. No charge, no excuses.”
The Residential Clean Energy Credit (formerly the Investment Tax Credit) is a non-refundable federal income-tax credit equal to 30% of the cost of installing a residential solar electric, solar water heating, fuel cell, geothermal heat pump, small wind, or battery storage system. It is claimed via IRS Form 5695 in the tax year your system is placed in service.
Yes — the Inflation Reduction Act of 2022 set the credit at 30% through 2032. It steps down to 26% in 2033, 22% in 2034, and is scheduled to expire after 2034 unless Congress extends it. Always verify the current rate with the IRS or your CPA at the time you file.
Yes — batteries with a capacity of 3 kWh or greater qualify for the 30% credit. As of the IRA, standalone batteries (no solar required) also qualify. Every battery Teamsun installs (FranklinWH, Tesla Powerwall, Enphase IQ Battery 5P) exceeds the 3 kWh threshold.
No. If you lease the system or sign a Power Purchase Agreement, the third-party owner claims the credit. You benefit indirectly through a lower fixed rate per kWh. Cash and loan structures let you claim the credit directly.
The unused portion carries forward to future tax years. The credit is non-refundable — meaning it cannot reduce your tax bill below zero — but the carryforward lets most homeowners claim the full credit over 1 – 3 years. Check with your CPA about your specific carryforward window.
No. We provide the cost-basis documentation, system specifications, and PTO letter your CPA needs to file Form 5695. We are not a tax preparation service. Always work with a qualified tax professional.
No. The credit is claimed in the tax year the system is placed in service (PTO date). If you missed claiming it on the original return, you can amend prior tax returns within the IRS amendment window — speak with a CPA about whether amending is worthwhile.
Generally no. The credit applies to solar costs only, not to a re-roof project that happens to include solar. Narrow exceptions exist for solar-shingle hybrid products that integrate panels into the roof itself. A standard asphalt-shingle re-roof under your panels is not eligible. Speak with your CPA.
Keep your Teamsun invoice, our cost-basis summary, the PTO letter from your utility, and a copy of the filed Form 5695 — for at least seven years per general IRS guidance. Teamsun maintains a copy of your project file for as long as we operate.
The IRS publishes Form 5695 instructions on irs.gov, and the Department of Energy Solar Energy Technologies Office publishes a homeowner-friendly summary. Both are linked from our blog post on the federal ITC. The DSIRE database also tracks current eligibility.
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