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IRS Form 5695 is used to claim residential energy credits, including solar panels. The following instructions demonstrate This article demonstrates how to enter newly purchased solar panels that will be used to produce electricity on Form 5695.

To qualify the solar panels must be for a home located in the United States. For a list of what solar electric property costs qualify for the credit, please reference the IRS Form 5695 Instructions.
If you receive a subsidy from a public utility for the purchase or installation of an energy conservation product, and you don't include that in your gross income, then you must reduce your basis used to figure the credit.
For tax year 2023 the credit will be up to 30% of qualified solar electric property costs. This is a nonrefundable tax credit, so it will only raise the taxpayer's refund if they have tax liability in the current year.
To see if a taxpayer has liability navigate to the 1040, Line 15.

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If you receive a subsidy from a public utility for the purchase or installation of an energy conservation product, and you don't include that in your gross income, then you must reduce your basis used to figure the credit.

To add credit for Solar Panels use the following form instructions:

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Entering New Solar Panels on Form 5695

Warning
These instructions are for NEW solar panel purchases. If the taxpayer is carrying forward the credit from a prior year, please contact CTTS for assistance.

Select Add Form.
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Select
Locate and highlight Form 5695 in the All Forms & Schedules Menu. Double-click to add.
Choose New Taxpayer's Occurrence. Double-click to add the form.
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Enter the address where the property was installed (if .
1. If same address on the 1040 you can use the check box to carry that information forward
)
1. .
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Enter the amount paid for solar panels in Line 1.