In 2025, many homeowners are questioning whether the federal solar tax credit applies to battery storage systems. For those who have already installed a solar energy system and claimed the 30% federal tax credit, the possibility of claiming this same credit for adding battery storage is of significant interest.
Current IRS guidelines and precedent rulings suggest that homeowners can indeed claim a 30% tax credit on eligible battery storage systems installed between 2023 and 2032. This applies even if the batteries are added after the initial installation of solar panels, provided certain criteria are met.
According to IRS Private Letter Ruling 201809003, a battery added post-installation can qualify as a “qualified solar electric property expenditure.” The IRS Residential Clean Energy Credit page states that you can claim 30% of the cost for new qualified battery storage technology with at least a 3 kWh capacity, applicable from January 1, 2023.
The guidance confirms that if you claimed the solar panel system's tax credit in one year, you could still claim another separate credit in future years for added battery storage. The expenditure is considered made when the battery is installed rather than when the original solar system was placed in service.
Many homeowners opt to install batteries later due to flexibility and financial advantages. Current IRS guidelines make it clear that energy storage qualifies for these credits as long as it meets specific criteria and is installed in a different tax year than the solar panels. Homeowners are advised to consult with their tax professionals before proceeding with such decisions.
Kokosing Solar offers assistance in designing and installing qualifying systems for federal incentives. They provide consultations to help maximize energy independence alongside available tax credits.