In a PV system, the solar modules produce direct current (DC), which is converted to alternating current (AC) by an inverter to supply local loads.
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Personal-use solar power systems are eligible for a federal income tax credit under Sec. This credit is available only for the taxpayer's personal residence and equals up to 30% of the costs of qualified property installed.
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For 2025, residential solar installations qualify for a 30% federal tax credit on the total system cost, including equipment and installation expenses.
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Export tax rebate: The refund rate for photovoltaic modules (HS 8541. 43) has been reduced from 13% to 9%, effective from December 1, 2024. There may be differences for different classifications (such as brackets), so it is recommended to verify the latest rates.
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