Skip to content
Fresno: (559) 549-5638Palm Desert: (760) 304-1775
Search:
Search
Supreme Solar & Electric
Go Solar, Go Supreme!
Supreme Solar & Electric
  • About
    • About Supreme Solar
    • Our Team
      • Michael Sandoval
    • Testimonials
    • Supreme Referral Program
    • Warranty
  • Solar Services
    • Supreme Services
    • Residential Solar
    • Solar Patios
    • Ground Mount Solar
    • Solar Battery
    • Whole Home Generators
    • Solar Panel Cleaning Services
    • Critter Guard
    • Solar Monitoring
    • Residential Roofing Services
  • Installs
  • Resources
    • Solar Blog
    • Solar FAQ’s
  • Pricing
  • Contact
    • Get A Quote
    • Locations
Fresno: (559) 549-5638Palm Desert: (760) 304-1775GET A QUOTE
  • Home
  • Solar Services
    • Supreme Services
    • Residential Solar
    • Solar Battery
    • Solar Patios
    • Whole Home Generators
    • Solar Panel Cleaning Services
    • Critter Guard
    • Solar Monitoring
    • Residential Roofing Services
  • About
    • About Supreme Solar
    • Our Team
    • Testimonials
    • Referral Program
    • Warranty
  • Installs
  • Solar Energy Resource Center
    • Solar Blog
    • Solar FAQ’s
  • Contact
    • Get A Quote
    • Locations

What is the Solar Tax Credit & How Does It Work?

You are here:
  1. Home
  2. Solar Financing & Tax Credit
  3. What is the Solar Tax…

Solar Learning Center

    • Electricity Savings
    • Increased Home Value
    • Gain Energy Independence
    • Overview
    • System Design
    • Permitting
    • Installation
    • Inspection
    • Utility Approval
    • Activate Your System
    • NEM 3.0
    • How Solar Works
    • Choosing A Contractor
    • Quoting Process
    • Utility Rates & Requirements
    • Key Terms
    • Tips & Tricks
    • Solar Pro's and Con's
    • Energy Production
    • System Monitoring
    • Panel Cleaning
    • System Maintenance
    • Troubleshooting
    • Payment Options
    • Solar Loans
    • Solar PPA
    • Tax Credit
    • Product Reviews
    • Solar Batteries
    • Inverters
    • Solar Panels
    • Mounting & Racking System
    • 5 Star Service
    • Other Home Services
    • Testimonials
    • Warranties



What is the Solar Tax Credit & How Does It Work?

What is the Solar Tax credit and how does it work?

It’s called the ‘Residential Energy Credit’ and its kinda like a gift card to the IRS.  But similar to retail gift cards, you can’t just go into the store and cash it right?  You have to use it in that store.  Same thing with the solar tax credit.  You have to apply it to your income tax bill.

w-2 Employees

If your a w-2 employee then you’ll have a withholding account.  Each paycheck, federal taxes are taken out and held to pay your income tax bill at the end of the year when you file your taxes. Instead of using your withholding account first, you’ll use your solar tax credit.  If you can’t use all of the credit, then it can be rolled over to the following year.

Self-Employed / 1099

If you’re self-employed or 1099 you don’t have a withholding account.  You make the full income, but have a full federal tax bill at the end of the year.  In this example, you would reduce the full income tax bill with the solar credit.

W-2 employees typically receive a larger refund and 1099/self-employed typically just reduce their tax bill.

If you are someone that would like to take advantage of the tax credit and want to see if you qualify, contact Supreme Solar today!

Browse Related Articles

  • Residential Solar Tax Credit Explained

GO SOLAR. GO SUPREME.

Break the grip of greedy utilities and power your home on your terms.

Quote

Get a custom design & quote.

Connect

Connect with our team.

Schedule

Book a call.
Categories: Solar Financing & Tax Credit, Tax creditJuly 19, 2022

Related Posts

Best Residential Solar Company in Palm Desert
Best Residential Solar Company in Palm Desert
November 22, 2024
Solar tax credits
Are There Still Tax Credits Available For Solar?
November 8, 2024
Best Residential Solar Company in Fresno
Best Residential Solar Company in Fresno
October 25, 2024
Solar Financing Who Offers the Best Financing for Residential Solar
Who Offers the Best Solar Financing for Residential Solar?
October 11, 2024
FRESNO

4277 W Richert Ave.
Fresno, CA 93722
(559) 549-5638

PALM DESERT

41841 Beacon Hill
Suite C
Palm Desert, CA 92211
(760) 304-1775

CSLB#1076925

Find us on:

Facebook page opens in new windowYouTube page opens in new windowInstagram page opens in new windowMail page opens in new window
SERVICES
  • Supreme Services
  • Residential Solar
  • Solar Battery
  • Solar Patios
  • Whole Home Generators
  • Critter Guard
  • Solar Panel Cleaning Services
  • Solar Monitoring
  • Residential Roofing Services
QUICK LINKS
  • Get A Quote
  • Solar Energy Resource Center
  • Solar FAQ’s
  • Testimonials
  • Our Team
  • Supreme Referral Program
  • Warranty
Supreme Solar BBB Business Review
© 2025 Supreme Solar & Electric. All Rights Reserved. | Website by Tailor Made Marketing.
Go to Top
Testimonials

Mohamed and Steve were amazing! They were able to squeeze in an appointment to install my Tesla wall charger and they did an amazing job. Highly recommend!
Brad Glenn

I referred many of my friend and family over to Mohamed throughout the years. He has always taken great care of them and delivered a great experience. Highly recommend him and his team.
Travis Russell

It has been a pleasure working with Supreme Solar. We had great conversations prior to proceeding with them and everything was explained, and we knew what to expect when everything was finished. Everything turned out perfect and I couldn’t be happier with the service that was provided. Highly recommend. Thanks again Supreme Solar!
Josh Reiter

Very professional team. I’m very pleased with the service. Felt very comfortable asking any questions and Mohamed made it very easy to understand. Definitely way better experience than my previous solar company.
Ana Jaymalin

I was in the solar business for years before accepting a position as an Energy Manager for a Native Tribe. I still receive inquiries from friends, family, and former customers to advise them on going solar. I have worked with a handful of companies, and Supreme is the best. While they are smaller than other companies, that works in their favor.
Jeremy Roos

Supreme Solar & Electric is simply fantastic! They were professional and swift in installing our new solar panels. Their service was top quality, they communicated clearly about what to expect, and left our home spotlessly clean. Now we’re enjoying the benefits of solar energy. Highly recommended!
Maddie Mooradian
  • How to get started with solar - a couple with a youg daughter stand before their house with solar panels on the roof and hold a model of a house with solar panels
    How to Get Started with Solar
    April 11, 2025
  • Neovolta Battery Review Is It the Best Solar Battery for Your Home
    Neovolta Battery Review: Is It the Best Solar Battery for Your Home?
    April 4, 2025
  • Whats New in the Solar Industry in 2025
    What’s New in the Solar Industry in 2025?
    March 24, 2025