Save $15,000 by Stacking Solar and EV Charging Tax Credits
Why Now Is the Time to Upgrade Your Home
Homeowners can slash combined project costs by up to $15,000 when installing a 10 kW rooftop solar system alongside a Level 2 EV charger. Federal tax incentives, state rebates, and utility programs, fueled by policies like the 2023 Inflation Reduction Act, make this pairing a financially smart move. The Solar Investment Tax Credit (ITC) offers a 30 percent reduction on solar installations, while the 2024 Energy Efficient Home Improvement Credit covers up to $2,500 for chargers. Add in EV purchase credits of up to $7,500, and the savings stack up quickly for those ready to act.
Breaking Down the Financial Benefits
A typical combined installation offers substantial savings through layered incentives. A 10 kW solar system, costing around $30,000, qualifies for a $9,000 ITC credit. A Level 2 charger, priced at approximately $1,200, can secure up to $2,500 through federal credits, with many utilities tossing in extra rebates. State and local programs often contribute an additional $1,000 to $4,000 for projects meeting specific criteria, such as powering chargers with on-site solar generation.
Key considerations include ensuring the ITC covers the charger by bundling it into the solar contract. The charger credit, while nonrefundable, allows excess to carry forward for up to five tax years. Always verify local requirements, as some rebates hinge on the percentage of charger energy sourced from your solar array.
Market Shifts Driving Solar and EV Adoption in 2025
Federal initiatives, like the Infrastructure Investment and Jobs Act, are boosting public charging infrastructure and funding over 1,200 solar-integrated projects. Utilities in states such as California and Texas are rolling out tariffs that reward self-consumption, directing rooftop solar output to EV chargers before exporting to the grid. This can cut charging costs by 30 to 40 percent when paired with time-of-use rate planning. Meanwhile, equipment manufacturers report a 27 percent surge in integrated solar-EV packages in 2024, simplifying installations and tax compliance.
Your Step-by-Step Guide to Maximize Savings
- Verify Eligibility: Confirm property and equipment ownership to claim the ITC, ensure sufficient tax liability for credits, and check vehicle and charger compliance with federal standards.
- Structure the Contract: Bundle solar and charger costs under one contract to apply the ITC to both, and request itemized invoices from certified installers for tax purposes.
- Secure Local Incentives: Apply for state and utility rebates before installation, noting deadlines and conditions like solar-powered charging requirements in states like California.
- File Taxes Precisely: Use IRS Form 5695 for solar credits, Form 8936 for EV credits, and retain all project documentation for potential audits.
Practical Tips to Boost Your Returns
Time your EV purchase to align with full credit availability, as some phase out based on manufacturer sales. Adding a home battery can store excess solar energy for charging during peak production, often qualifying for additional credits. Model your solar array size to balance household and EV loads under net metering rules for optimal savings. Finally, opt for ownership over leasing to retain all tax benefits, as leased systems transfer credits to the lessor.
Real-World Example: Sacramento Success Story
In Sacramento, a homeowner installed a 9.5 kW solar system for $28,500 and a Level 2 charger for $1,300. With a 30 percent ITC ($8,550), a $2,500 charger credit, a $7,500 EV credit, and $4,500 in state rebates, total incentives reached $22,550. The net cost dropped below $7,000, slashing payback time and boosting project value. This illustrates the power of stacking incentives with careful planning.
Actionable Next Steps for Homeowners
Start with a site assessment to evaluate solar potential, charging needs, and local utility rates. Request quotes from accredited installers, ensuring combined contracts for maximum ITC benefits, and submit rebate applications on time. Visit fistsolar.com for a free quote and detailed guidance on contractor selection, rebates, and tax filings. Seize this moment to lower energy costs and secure significant upfront savings with a solar and EV charger installation.