Federal Tax Credit

It is an incentive. This means if you buy and install a solar energy system, the federal government will give you a tax credit for investing in solar energy.

Right now, that is 30% that you can use the money to apply your your solar installation.

Next year it will be slightly less and it may be gone completely in the future.

This is shown on your income tax. That 26% is for your total project cost, which includes equipment, permitting and installation. It can be claimed as a credit on your federal tax return.