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 2024-15 PDF, April 17, 2024.

Q1. What residential clean energy expenditures are eligible for the Residential Clean Energy Property Credit, and how much is the credit? (added December 22, 2022)

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

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

Q2. Are roofing expenditures that were necessary for the installation of solar panels eligible for the Residential Clean Energy Property Credit? (added December 22, 2022)

A2. In general, traditional roofing materials and structural components do not qualify for the Residential Clean Energy Property 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 Residential Clean Energy Property Credit? (added December 22, 2022)

A3. No, there is no overall dollar limit for the Residential Clean Energy Property 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 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 total Residential Clean Energy Property 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.