We are considering installing a solar energy system. The company requesting we pay them the energy credit to offset the loan amount. How does the credit work? Does the IRS send me a check? Does this request seem normal?
The IRS does not send you a check per se. You get a credit against taxes due on your tax return. If nothing is due (or the credit is not used up), you get a carryforward. Some states have their own tax credit and/or your utility company may offer a rebate.
The company is likely telling you that you can "use" the tax credit to pay the loan, thus reducing your overall cost. Proceed carefully.
https://ttlc.intuit.com/questions/4486867-tax-liability-vs-tax-paid-for-solar-credit
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