Solar Incentives by State

When it comes to solar incentives, the early bird gets the worm. Most incentives decline in value over time as more and more homeowners go solar and the cost of solar equipment continues to decline.

Homeowners who invest in solar in 2025 can get the best of both worlds — high-value incentives and low equipment costs — to lock in low electricity costs and maximum bill savings.

For starters, the 30% federal solar tax credit is still on the table for projects installed in 2025. Beginning in 2026, there will be no credit for homeowners to claim.

Learn more about the 30% solar tax credit going away in the video below.

https://www.youtube.com/watch?v=BzZB5xMxhUg

Below is a list of local solar incentives offered in each state. This resource is a work in progress. If you don’t see your state listed below, connect with an Energy Advisor to explore your solar incentives.

Jump to your state:

• Arizona
• California
• Colorado
• Connecticut
• Florida
• Illinois
• Maryland
• Massachusetts
• Minnesota
• New York
• New Jersey
• Ohio
• Texas
• Virginia

Arizona Solar Incentives

In the aptly named “Sunshine State,” solar panels are a natural choice for homeowners looking to turn sunshine into savings. Better yet, Arizona has a handful of incentives to increase your energy cost savings.

It’s worth noting that there are ongoing efforts to weaken Arizona’s net billing policy, but Arizonans can be grandfathered into the existing policy by going solar before any changes are made.

Compare solar prices in Arizona here. 

California Solar Incentives

Due to high energy costs and ample sunshine, California is a great state for solar. In fact, there are relatively few solar incentives in California because solar is already much more affordable than buying electricity from a utility.

Regardless, here are a few California solar incentives to keep an eye on.

Related: Free Solar Panels? The Truth Behind the Ads for Free Solar

Colorado Solar Incentives

Colorado passed a clean energy bill in 2023 that included funding to streamline permitting local solar energy projects. This comes in addition to state and local solar incentives.

Additional utility-based solar incentives in Colorado

The following Colorado utilities also offer some form of rebate or rewards program:

• San Miguel Power Association
• Colorado Springs Utilities
• Aspen Electric
• Holy Cross Energy
• La Plata Electric Association
• Black Hills Energy

Connect with an Energy Advisor to explore incentives offered by your utility.

Connecticut Solar Incentives

With the second-highest average electricity price in the US, solar panels offer the potential for massive energy cost savings in Connecticut. With that said, Connecticut isn’t overflowing with solar incentives – but every bit counts.

Connecticut’s Residential Energy Solutions program

The Residential Energy Solutions program replaced net metering in 2022 and offers solar owners two choices for being compensated for solar production.

The “netting option” is similar to net metering, but it also includes direct payments for each kilowatt-hour of solar generation. The “buy-all option” involves selling all of your solar production to your utility for on-bill credit compensation based on a flat rate per kWh.

At the time of writing, these appear to be the only solar incentives available in Connecticut, although it’s worth checking with your local government and utility provider.

Florida solar incentives

With abundant sunshine and a booming rooftop solar industry, Florida is an ideal place for going solar. A sprinkling of state and local incentives are just the cherry on top.

*

*

Illinois Solar Incentives

Illinois is a perfect example of how solar incentives can make solar attractive in states without exceptionally high electricity prices and/or year-round sun. Notably, launching the Adjustable Block Program in 2019 made solar more financially beneficial and sparked residential, utility, and community adoption.

Note on the Illinois Shines Program:

Based on 2025 SREC values, an average residential solar system would earn between $10,000 and $12,000 over 15 years.

Maryland Solar Incentives

Maryland has a handful of solar and battery incentives that can substantially reduce the cost of these home upgrades and maximize energy cost savings.

The value of SRECs fluctuates over time, but at the current rate an average system producing 7,000 kWh per year would earn over $400 per year.

Local government solar incentives in Maryland

In addition to the state property tax exemption, there are a handful of counties that offer local property tax credits worth up to $5,000 per year. These include:

• Baltimore County
• Anne Arundel County
• Prince George’s County
• Harford County

Consult a licensed tax advisor to make a game plan for claiming these local incentives.

Massachusetts Solar Incentives

Massachusetts solar incentives include a state tax credit and rebate program, in addition to generous municipal rebate programs. As always, homeowners are encouraged to take advantage of these incentives now, as program funding tends to decline over time.

Utility-based solar incentives in Massachusetts

Massachusetts also boasts a number of municipal rebate programs that can be combined with state and federal incentives to take a big bite out of solar costs.

Municipal utilities with rebate programs include:

• Ipswich Electric Light Department
• Shrewsbury Electric & Cable Operations
• Wakefield Municipal Gas and Light Department
• Reading Municipal Light Department
• Hudson Light & Power
• Concord Municipal Light and Power
• Taunton Municipal Lighting Plant

*

*

Minnesota Solar Incentives

While not the sunniest state, Minnesota has a number of solar-friendly policies and utility-based incentives.

There are also at least three public utilities in Minnesota that offer rebate programs for residential solar installations. These include:

• Rochester Public Utilities – $500
• Owatanna Public Utilities – $500
• Austin Utilities – $500

These upfront rebates can be combined with the 30% federal solar tax credit* to substantially reduce the cost of rooftop solar!

*Update: With the “One Big Beautiful Bill” now law, residential solar systems must be installed by December 31, 2025 to qualify for the federal solar tax credit. In 2026 and beyond, there will be no federal solar tax credit for homeowners to claim.

New York Solar Rebates

New York may be the best state for solar in terms of incentive programs available to homeowners. In most scenarios, you can cover over half of your project costs covered by some form of incentive.

*

*

New Jersey Solar Rebates

New Jersey has perhaps the most valuable incentive in the US with its Successor Solar Incentive (SuSI). Combined with the federal solar tax credit, Garden Staters can reduce their solar costs by well over 50%.

NJ SuSI program at a glance

In the SuSI program, solar owners can earn and sell SREC-IIs worth $85 for each MW of electricity their system produces for 15 years. With an average system producing ~8 MW per year, that adds up to $680 per year and $10,200 over 15 years.

Learn more about the SuSI program here.

Ohio solar incentives

According to the Office of the Ohio Consumers’ Counsel, Ohio is home to over 200 solar companies and is poised for rapid growth in the 2020’s. In addition to the 30% federal solar tax credit*, the state offers a handful of incentives to encourage homeowners to fuel the state’s growing solar industry.

*Update: With the “One Big Beautiful Bill” now law, residential solar systems must be installed by December 31, 2025 to qualify for the federal solar tax credit. In 2026 and beyond, there will be no federal solar tax credit for homeowners to claim.

Local government incentives

There are a few solar incentives offered at the city and county levels that can further reduce the cost of solar. These include:

• Local property tax exemptions in Cleveland and Cincinnati prevent the value added by your solar system from increasing your property taxes
• Low-interest financing through the Hamilton County Home Improvement Program

Connect with an Energy Advisor to see if solar makes sense for you in Ohio.

*

Texas solar incentives

With ample sunshine and little shade, Texas is tailor-made for rooftop solar. However, most incentives are implemented at the local and utility level as opposed to the state level, so it’s worth taking an extra minute to research incentives for your area.

Texas state and local government solar incentives

Texas utility-based solar incentives

Most solar incentives in Texas are distributed at the utility level. These include:

*

*

Virginia solar incentives

Virginia offers a sprinkling of solar incentives in addition to the 30% federal solar tax credit* that can make rooftop solar more affordable than buying electricity from a utility provider.

*Update: With the “One Big Beautiful Bill” now law, residential solar systems must be installed by December 31, 2025 to qualify for the federal solar tax credit. In 2026 and beyond, there will be no federal solar tax credit for homeowners to claim.

*

Didn’t see your state?

This resource is a work in progress and does not yet feature every state and solar incentive yet.

If you don’t see your state above, connect with an Energy Advisor to explore the incentives that can reduce the cost of your solar system and increase your energy cost savings.