There are significant rebates and incentives as part of the Department of Energy’s push to grow renewable energy in the United States. The Internal Revenue Service allows eligible taxpayers to claim up to 26% of the total cost of their solar system installation on their federal taxes. This can mean a huge solar tax credit, but the tax credit will drop to 22% in 2023 and to 10% in 2024. For example, if you spend $10,000 on installing solar panels and qualify for the federal solar tax credit, you can claim a credit of up to $2,600 on your taxes that year. Always consult a tax professional to find what works best for your individual situation. Keep in mind that this is only the federal tax credit. State governments and utility companies often have benefits for solar homeowners, as well. For example, Arizona is currently exempting that purchase of solar equipment from sales tax.