Are There Any Tax Incentives I Can Use When Replacing My Solar System?

      The federal residential solar energy credit can be claimed on federal income taxes for a percentage of the cost of a solar system paid for by the taxpayer. The installation of the system must be complete during the tax year. For more information and to determine your eligibility, visit the Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics.

What Do I Do with My Old System?

      If you install a new system, work with your installer to determine a plan to haul away your old solar panels, ideally for reuse. If you chose to recycle your old system – you can visit the Solar Energy Industry Association’s website for a list of recyclers who accept solar panels

      DOE has invested in research and development projects that advance the reuse of solar panels. In 2016, DOE’s Solar Energy Technologies Office (SETO) awarded $700,000 to EnergyBin to create an online marketplace for overstock and hard-to-find components in the solar industry.

      In 2022, SETO released the End-of-Life Management for Solar Photovoltaics Action Plan to maximize the environmental benefit of PV systems by improving end of life practices.

      Most recently, SETO solicited proposals to improve the economic viability of recycling to prevent panels from ending up in landfills via its Materials, Operation, and Recycling of Photovoltaics (MORE PV) funding opportunity announcement. SETO supports hardware research to reduce the environmental impacts of end-of-life and reduce the costs of module recycling by more than half by 2030.

      Check out the Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics, Homeowner's Guide to Going Solar, and learn more about SETO’s photovoltaics research.