Do Solar Batteries Qualify for the Solar Tax Credit?
Solar panels and battery storage work together to give you greater control over your electricity. With residential solar plus battery storage, you can use more of the electricity you produce, reducing your reliance on the electric grid and increasing your energy independence.
But do solar batteries qualify for tax credits?
Yes! The federal solar tax credit applies to solar panels and battery storage, so, through 2025, you could claim 30% of the cost. Important 2026 update: the federal residential solar tax credit (Section 25D) was repealed by the One Big Beautiful Bill Act and expired December 31, 2025, so homeowners who buy in 2026 no longer receive this credit. The sections below explain how it worked while it was available; Massachusetts homeowners can still use the state tax credit, SMART, net metering, and the ConnectedSolutions battery program.
*DISCLAIMER: While this blog post discusses solar tax credits and filing your returns, you should ALWAYS consult your tax professional for your specific situation. We do not assume responsibility for your tax situation or credits
The Solar Tax Credit & The Solar Battery Tax Credit in 2024
The solar tax credit and the solar battery tax credit are one and the same. They’re both part of the Renewable Clean Energy Credit, which applies to solar panels, solar battery storage systems, wind turbines, geothermal heat pumps, and fuel cells.
The Renewable Clean Energy Credit has been around for a long time but it was recently revamped as part of the Inflation Reduction Act. When the Inflation Reduction Act was signed in 2022, the Renewable Clean Energy Credit (aka the solar tax credit) was increased to 30%. The new and improved solar tax credit explicitly includes “qualified battery storage technology expenditure,” which means energy storage systems like solar batteries are covered.
The solar tax credit in 2024 was worth 30% of your total solar installation costs. To be eligible for the credit 2024, your solar energy system must be installed and turned on by the last day of the year.
Do All Solar Batteries Qualify for the Tax Credit?
While the credit was in effect (through 2025), most solar battery systems were eligible for the 30% credit. But there are some stipulations. To qualify, your battery must:
- Have a capacity rating of 3 kilowatt-hours (kWh) or greater
- Be installed at a property located in the United States and used as a primary or secondary residence by the taxpayer
When Does the Solar Battery Tax Credit End?
Originally, the 30% federal credit for battery storage was scheduled to run through 2032 before stepping down. That schedule no longer applies: the One Big Beautiful Bill Act repealed the residential credit early, ending it for systems placed in service after December 31, 2025. There is no federal residential battery credit in 2026 or later. (Commercial and third-party-owned systems may still access a federal credit under Section 48E.)
- 2023–2025: 30% (this residential credit ended December 31, 2025)
- 2026 onward: no federal residential credit
- (the earlier 2033/2034 step-down was cancelled by the One Big Beautiful Bill Act)
Installing solar plus storage sooner rather than later can secure tax credit savings and a faster solar payback period!
Can A Solar Battery Be Added to Existing Solar Panels?
In most cases, solar batteries can be added to an existing solar system. Depending on the system’s design and the inverter used, updates may be required before the solar system can support a battery. Because of the complexities involved, we only add batteries to systems we originally installed.
It’s more cost-effective to install solar panels and battery storage at the same time. But, if you want to go solar now and aren’t ready to invest in a battery bank, we can install a “battery-ready” system. A battery-ready system is set up to support battery storage so it can be easily added at a later date.
Do You Need a Solar Battery?
Massachusetts incentives like ConnectedSolutions and the SMART battery adder make solar battery storage more affordable, but it’s still an investment. So is it worth it? It depends on your unique situation and needs. For some homes, solar batteries make a lot of sense because they provide greater energy security and backup power. For others, the added cost is ultimately not worth it.
Boston Solar can help you weigh the pros and cons of a solar battery so you can decide whether it’s worth the investment. If you do decide to install solar with battery storage, you can look forward to:
- Backup power during an outage
- Use more of the solar energy you produce
- 24/7 access to solar power—even at night and on cloudy days
- Reduced fossil fuel consumption
- Increased energy independence
Ready to take control of your energy? Boston Solar can help with professional solar panel and battery installation in Massachusetts and southern New Hampshire. We’ve been empowering New England for over 11 years and have installed thousands of solar panels and battery systems. We will make sure your system is designed to provide the maximum amount of renewable energy for your home, and that it takes full advantage of the Massachusetts incentives available to you.
