The solar tax credit, officially known as the Federal Tax Investment Credit (ITC), is issued by the federal government to homeowners who install new solar panel systems.  You receive a tax deduction equal to 30% of your solar installation costs from 2022 to 2032. The rate will reduce to 26% in 2033 and drop to 22% in 2034. The credit is set to end on December 31, 2034.