Are Solar Generators Tax Deductible? Federal Solar Tax Credit Explained (2025) | Pure Power Solar

Q: Are Solar Generators Tax Deductible?

Purchasing a solar generator (power station and solar panels) does qualify you for a federal tax credit. You’ll receive a 26% tax credit if your system is installed before the end of 2022 (22% credit if installed in 2023). This applies to the total cost of your system (including contracted labor).

Q: What Is the Federal Solar Tax Credit?

The Federal Solar Tax Credit is one of many provisions contained in the Energy Policy Act of 2005. It was designed to encourage residents to begin using cleaner sources of energy to power their homes. The tax credit is in effect until the end of 2023 and can be renewed by Congress.

Q: Does the Federal Solar Tax Credit Apply to Me?

If you purchase a solar generator before the program’s expiration, you qualify for the Federal Solar Tax Credit. Since it’s a tax credit, you’ll need to owe U.S. federal taxes on some level. If you do, then you’ll be able to take up to 26% of the solar generator’s cost off your tax bill.

Q: How Do I Get the Tax Credit for My Solar Generator?

To claim the Federal Solar Tax Credit on your taxes, you begin by filling out IRS Form 5695. This is the residential energy credit. If your accountant files your taxes, just let them know that you have purchased a solar generator, and they will take care of the rest.

Q: What Type of Generators Qualify for the Federal Solar Tax Credit?

A solar generator – which generally consists of solar panels, a battery, a charge controller, and an inverter – qualifies for the Federal Solar Tax Credit. Solar generators are typically a secondary source of residential power. That being said, they can still qualify for the tax deduction.

If you’re considering solar for your home in 2025, you may be wondering whether you can get a tax break — especially if you’re looking at solar generators or whole-home solar energy systems. The good news: there are still significant federal incentives available. However, not all types of solar equipment qualify.

In this guide, we’ll break down the federal solar tax credit (Residential Clean Energy Credit), explain who’s eligible, and clarify whether solar generators and portable power stations count.

Table of Contents:

What Is the Federal Solar Tax Credit?
Does the Federal Solar Tax Credit Apply to Me?
How Do I Get the Tax Credit for My Solar Generator?
What Type of Generators Qualify for the Federal Solar Tax Credit?
Why a Solar Generator Is (or Isn’t) Tax Deductible
Who Needs a Solar Generator?
Is a Solar Generator Worth the Cost?

What Is the Federal Solar Tax Credit?

The Federal Solar Tax Credit, officially called the Residential Clean Energy Credit, is a federal incentive that allows homeowners to deduct a portion of the cost of installing a solar energy system from their federal taxes.

Value: The credit is currently worth 30% of the total system cost, including equipment, shipping, permitting, and installation.
Expiration: The 30% rate applies through December 31, 2025. Unless extended by Congress, it will step down after this date.
Covered systems: This applies to solar photovoltaic (PV) panels and related equipment that generates electricity for a home. It also applies to solar batteries when they are charged by solar panels.

Example: If you install a rooftop solar system for $15,000 in 2025, you can reduce your federal tax liability by $4,500.

For more details, you can review the IRS’s official guidance in Form 5695 Instructions and the U.S. Department of Energy’s solar incentives page.

Does the Federal Solar Tax Credit Apply to Me?

Not every solar purchase qualifies — and eligibility depends on a few important rules.

To claim the credit in 2025, you must:

Own the system: You must buy the solar energy system with cash or a loan. Leased systems or power purchase agreements (PPAs) are not eligible.
Use it at a U.S. residence: The system must be installed at your primary or secondary residence in the United States.
Meet the timeline: The system must be installed and placed in service by December 31, 2025.
Have tax liability: Since the credit is nonrefundable, you need to owe federal taxes to claim it. However, any unused credit can roll over to future years.

Important: Portable solar generators and standalone power stations do not typically qualify, since the credit applies to permanent, home-integrated solar PV systems.

For official eligibility requirements, see the IRS Residential Energy Efficient Property Credit page

How Do I Get the Tax Credit for My Solar Generator?

If you’re purchasing a home solar energy system in 2025, you can claim the federal solar tax credit by filing the right forms at tax time. The process is straightforward:

Purchase and install your system – The solar PV system must be installed and placed in service at your U.S. residence by December 31, 2025.
Save your receipts and documentation – Keep records of all costs, including panels, inverters, racking, batteries (if connected to solar), shipping, permitting, and installation labor.
File IRS Form 5695 – When you file your federal taxes, complete IRS Form 5695 to calculate your Residential Clean Energy Credit.
Apply the credit – The calculated amount (30% of eligible costs) will be subtracted from your federal tax liability.
Carry forward if needed – If your credit exceeds what you owe in taxes, the unused portion can roll over to future tax years.

Important distinction: The federal credit applies to home-installed solar systems, not to standalone portable solar generators or battery packs. Even if you use a portable unit to power your home during outages, it typically won’t meet IRS criteria as a “solar energy property.”

What Type of Generators Qualify for the Federal Solar Tax Credit?

The federal solar tax credit is designed for solar photovoltaic (PV) systems that supply electricity to your home. That means not every product labeled a “solar generator” qualifies.

Qualifies for the credit:

Rooftop solar panel systems
Ground-mounted solar arrays
Solar batteries (when charged by solar panels)
Associated installation costs (wiring, inverters, labor, permits)

Does NOT qualify:

Portable solar generators (plug-and-play battery stations like EcoFlow, Jackery, Bluetti, etc.)
Gas-powered generators (diesel, propane, or gasoline)
Hybrid generators (gas + battery) not permanently installed with a PV system

The IRS makes clear that eligible property must be “installed on a home located in the United States and owned by the taxpayer” [IRS Residential Clean Energy Credit]. Since portable solar generators are not permanently installed, they fall outside the scope of the tax credit.

In other words: while a rooftop solar system can save you thousands in tax credits, a portable solar generator is treated more like consumer electronics — useful for emergencies, but not deductible.

Why a Solar Generator Is (or Isn’t) Tax Deductible

This is where many homeowners get confused. The term “solar generator” is often used to describe portable power stations with solar panel attachments. While these units are excellent for camping, RVs, or backup during power outages, they usually do not qualify for the federal solar tax credit.

Here’s why:

The IRS defines eligible property as solar photovoltaic systems that are permanently installed at a taxpayer’s residence.
Portable solar generators are considered consumer electronics, not home energy improvements.
Even though they use solar panels, they aren’t treated the same as rooftop or ground-mounted solar arrays.

That said, if your solar battery is directly connected to a rooftop or ground-mounted solar PV system, then the battery storage portion may qualify. For example, a Tesla Powerwall or Enphase battery connected to a rooftop system would be eligible.

Bottom line: Most standalone solar generators are not tax deductible, but home-integrated solar batteries and panels are.

Who Needs a Solar Generator?

Inergy Flex powering fridge – inergytek.com

Even without tax incentives, solar generators can still make sense depending on your needs.

You may want a solar generator if you:

Live in an area prone to power outages or hurricanes
Need quiet backup power (unlike gas generators, solar units are silent)
Want a portable energy source for RV trips, camping, or off-grid cabins
Prefer a clean energy backup with no fuel costs, fumes, or maintenance

For homeowners, a rooftop solar system + battery storage offers long-term savings and tax incentives. But for renters, travelers, or those who need emergency preparedness, a portable solar generator is still a smart purchase — just not one that qualifies for the federal tax credit.

Is a Solar Generator Worth the Cost?

The answer depends on your goals:

For reducing home energy bills: A full solar installation (rooftop panels, inverter, and battery) is the better investment — especially with the 30% federal tax credit still active through 2025. This can save thousands in upfront costs and continue to provide long-term energy savings.
For portable power & emergency use: A solar generator is worth the cost if you need reliable, clean backup power. While you won’t get a federal tax deduction, you do get peace of mind and independence from the grid.

In short:

If you want to cut your electric bill and get tax credits, invest in a home solar system.
If you want portable, flexible power, buy a solar generator — just understand it’s not deductible.

In most cases, the tax deduction provides a great incentive to justify the cost for an energy source that will last over a decade on average.

The technology behind solar generators has been around for several years, but they are starting to become more mainstream as their benefits are extensive.

With this increased demand for off-grid solar power, solar generator manufacturers have improved their products’ technology in several areas over the last 5-10 years.

This includes improvements like:

Upgrading from lead-acid to much lighter and better performing lithium-ion and LiFePO4 battery types
Companies such as Goal Zero, Bluetti, and EcoFlow have created mobile applications to pair with their portable power stations
Using MPPT charge controllers in their systems as opposed to the less-efficient PWM controllers

The best battery type for a solar generator is a LiFePO4 battery. These batteries in almost every case last much longer than lead-acid and lithium-ion batteries. I created an article listing six LiFePO4 solar generators that I think you may gain some insights from. Check it out here: 6 Best LiFePO4 Solar Generators (Stats, Pricing, and Analysis).

Are Solar Generators Tax Deductible? Federal Solar Tax Incentives in 2025