Tax Credits for New Roofs with Solar Panels: 1 Minute to Understanding Solar Tax Credits and Roofing Benefits

Installing a new roof with solar panels can significantly improve your home’s energy efficiency and potentially increase its value, but the initial investment can be substantial. Luckily, homeowners can offset some of these costs through various federal tax credits and local incentives specifically designed to promote renewable energy adoption. The most notable among these is the federal Residential Clean Energy Credit (formerly the Investment Tax Credit, ITC), which allows eligible homeowners to deduct a portion of the cost of installing solar energy systems, including the integration with roofing projects, from their federal taxes. This credit currently covers up to 30% of the total installation cost for systems placed in service from 2022 through 2032, tapering off after that. In many cases, if your new roof is necessary for solar panel installation (such as replacing old shingles to ensure structural integrity), a portion of the roofing costs directly related to the solar installation may also be included in the tax credit calculation.

It’s important to keep detailed records and work with an experienced installer who can help you separate qualifying costs, as only certain roofing materials (like those that serve as solar mounting surfaces or provide improved weatherproofing for solar arrays) typically count toward the credit. States and municipalities may offer additional credits, rebates, or property tax exemptions, so always check with local agencies. As a designer, I recognize that roof upgrades aren’t just about functionality—choosing materials, colors, and layouts that complement solar panels can dramatically enhance your home’s curb appeal and energy profile. Integrating advanced planning with a professional approach to home design ensures your investment boosts both sustainability and aesthetics.

Tips 1:

When planning your solar roof upgrade, collaborate with both your installer and a design expert early in the process. This ensures your roof upgrade satisfies structural and solar-friendly requirements while blending harmoniously with your home’s overall aesthetic. Consider materials that complement solar panels—like architectural shingles in modern shades or standing seam metal roofing, which is exceptionally solar-friendly for mounting hardware.

FAQ

Q: Can I claim the federal tax credit if I install both a new roof and solar panels?

A: Yes, you can claim the Residential Clean Energy Credit for the solar panel system. In some situations, qualifying portions of the new roof—specifically those that are necessary for solar panel installation—may also be included.

Q: What roofing costs are eligible for the solar tax credit?

A: Only roofing materials and labor necessary for supporting and mounting solar panels, such as certain shingles or structural upgrades, may qualify. General reroofing costs unrelated to solar installation typically do not.

Q: Do solar shingles qualify for the tax credit?

A: Solar shingles and solar tiles are treated as solar electricity generating systems and are generally eligible for the full credit, including their installation costs.

Q: Are local or state incentives available in addition to the federal credit?

A: Yes, many states and municipalities offer additional incentives, including rebates and property tax exemptions, so it’s essential to research local programs.

Q: How long will the 30% federal tax credit be available?

A: The 30% credit is scheduled to remain in place for systems installed through 2032, decreasing in 2033 and 2034. Consult with your installer and tax professional to confirm eligibility based on installation timing.