Solar Incentives by State

Thanks to the Inflation Reduction Act, the Federal Solar Investment Tax Credit is at 30% until the end 2032 — which is a great start to reducing the cost of your solar system.

However, you may also have access to additional solar incentives from your state, municipality or utility that can reduce the cost of going solar even further. And every penny reduced from your solar cost is a penny saved in energy costs.

Below is a list local solar incentives broken into states. 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 Solar Incentives

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.

Incentive name Implementing body Value
Arizona State Residential Solar Income Tax Credit State of AZ 25% of installation costs up to $1,000 (doesn’t apply
Solar sales tax exemption State of AZ 100% sales and use tax exemption for solar and battery technologies
Solar property tax exemption State of AZ 100% property tax exemption for the value added by solar and battery technologies
Net billing Investor-owned utilities Solar owners compensated for excess production based on Resource Comparison Proxy (RCP), currently around 50% of retail rates
Mohave Electric Cooperative SunWatts Renewable Energy Incentive Program Mohave Electric Cooperative Rebate worth 5 cents per watt of solar capacity installed, up to $2,500

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.

Incentive name Implementing body Value
The Self-Generation Incentive Program (SGIP) CPUC Rebates for battery storage up to $1,000 per kWh of capacity installed
Property Assessed Clean Energy (PACE) financing State of CA Solar financing through property tax assessments
Solar rebate Rancho Mirage Energy Authority $500
Solar stipend Sacramento Municipal Utility District’s (SMUD) $150
DAC-SASH GRID Alternatives Low- and no-cost solar installations for qualifying low-income households in disadvantaged communities.

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.

Incentive name Implementing body Value
Solar sales tax exemption State of CO 100% sales and use tax exemption for solar and battery technologies
Solar property tax exemption State of CO 100% property tax exemption for the value added by solar and battery technologies
Residential Energy Upgrade (RENU) Loan State of CO Low-cost, long-term financing up to $75,000
Weatherization Assistance Program (WAP) Colorado Energy Office No-cost solar installations to qualifying applicants
Energy Smart Colorado Renewable Energy Rebate CORE (Pitkin and Eagle Counties) Rebate worth 25% of solar project costs up to $2,500
City of Boulder’s Solar Rebate Ordinance City of Boulder Rebate for 15 percent of the city sales and use tax paid on materials and permits for the solar installation.
Solarize Summit High Country Conservation Center Up to $1,950 in rebates for eligible residents of Breckenridge, Frisco, and unincorporated Summit County
Solar Rewards Xcel Energy Upfront rebate of $1 per watt of solar capacity installed (up to 7 kW)

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.

Incentive name Implementing body Value
Solar sales tax exemption State of CT 100% sales and use tax exemption for solar and battery technologies
Solar property tax exemption State of CT 100% property tax exemption for the value added by solar and battery technologies
The Residential Energy Solutions program State of CT Compensation for electricity produced by residential solar systems

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.

Incentive name Implementing body Value
Property tax exemption State of FL A property tax exemption for 100% of the value added by solar and/or battery storage
Sales tax exemption State of FL A sales tax exemption for solar energy systems
Property Assessed Clean Energy (PACE) State of FL Solar financing through property tax assessments
Net metering State of FL Compensation for excess solar generation at retail utility rates
Boynton Beach Energy Edge Rebate City of Boynton Beach Up to $1,500 for systems 5 kW or larger
Dunedin Solar Energy Grant Program City of Dunedin $0.25 per watt of solar power generated for a maximum grant of $2,500

 

 

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.

Incentive name Implementing body Value
Special property value assessments State of IL Value added by solar won’t raise your property taxes
Illinois Solar for All State of IL No-cost solar program reserved for eligible low-income homeowners
The Adjustable Block Program (ADP) State of IL Awards participants one renewable energy credit (REC) for every 1,000 kWh of solar production for 15 years, which can be sold on marketplaces for cash.
Net metering State of IL Residential solar owners are compensated for their excess production at retail electricity rates

Note on the Adjustable Block Program:

According to the Illinois Power Agency’s REC Payments calculator, a residential solar system producing 10,000 kWh per year in program year 2023-2024 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.

Incentive name Implementing body Value
Sales tax exemption State of MD 100% exemption from state sales tax on solar purchases
Property tax exemption State of MD A 100% property tax exemption for the home value added by solar energy equipment
Residential Clean Energy Rebate State of MD Rebate worth up to $1,000 (pending legislation seeks to increase value to $5,000)
Net metering State of MD Residential solar owners are compensated for their excess production at retail electricity rates
Energy Storage Income Tax Credit State of MD State income tax credit worth 30% of the total cost of battery, with a $5,000 cap
Solar Renewable Energy Credits State of MD SRECs worth $57 per 1,000 kWh of solar production, as of December 2023

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.

Incentive name Implementing body Value
Sales tax exemption State of MA 100% exemption from state sales tax on solar purchases
Property tax exemption State of MA A 100% property tax exemption for the home value added by solar energy equipment
Net metering State of MA Residential solar owners are compensated for their excess production at retail electricity rates
Solar Massachusetts Renewable Target (SMART) rebate program State of MA Compensation for kWh of production based on utility and system specifications
Solar tax credit State of MA A state tax credit worth 15% of project costs, up to $1,000

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:

 

 

Minnesota Solar Incentives

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

Incentive name Implementing body Value
Net metering State of MN Solar owners are compensated at retail rates for excess production exported onto the grid
Sales Tax Exemption State of MN 100% state sales tax exemption on solar equipment
Property Tax Exemption NY State 100% exemption from real property taxes
Minnesota Power SolarSense Minnesota Power Upfront rebate worth $0.29 per kWh of expected annual average production, up to $5,000
Xcel Energy Solar*Rewards Xcel Energy Annual incentive worth $0.03 per kWh of solar production over 10 years. Larger incentives available for income-qualified households.

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

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

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.

Incentive name Implementing body Value
NY State Tax credit NY State 25% of solar expenditure up to $5,000
Solar Program (NY-Sun) NYSERDA Up to 20 cents per Watt of solar capacity installed
Sales Tax Exemption NY State State sales tax exemption on solar equipment
Property Tax Exemption NY State 15-year property tax exemption on the value solar adds to your home
Net metering NY state Two options: Phase One plus CBC or Value of Distributed Energy Resources (VDER) or Value Stack
PSEG Long Island Battery Storage Rewards PSEG Long Island Compensation for discharging battery storage during high electricity demand events in the summer

 

 

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%.

Incentive name Implementing body Value
Sales tax exemption State of NJ 100% state sales tax exemption for solar purchases
Property tax exemption State of NJ 100% property tax exemption for the value added by solar PV systems
Successor Solar Incentive Program (SuSI) State of NJ Earn and sell SREC-IIs worth $85 for each MW of electricity their system produces for 15 years
Net metering State of NJ Residential solar owners are compensated for their excess production at retail electricity rates

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.

SuSI vs non-SuSI solar loan

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.

Incentive name Implementing body Value
Net metering State of OH Compensation for excess solar generation exported onto grid, varies by utility provider
Solar Renewable Energy Credits (SRECs)  State of OH
Sales tax exemption  State of OH Exemption for state sales tax on solar purchases
Solar Renewable Energy Credits (SRECs)  State of OH SRECs worth $4.25 per MWh of generation.
ECO-Link program State of OH Low-cost financing for home improvement projects including rooftop solar
Ohio Property-Assessed Clean Energy (PACE) Financing Ohio PACE Solar financing through property tax assessments

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

Incentive name Implementing body Value
Property tax exemption Texas Comptroller Exemption from property tax based on value added by solar energy system
City of Sunset Valley’s Solar Energy Conservation Rebate City of Sunset Valley $1.00 per watt of solar capacity installed up to $3,000

Texas utility-based solar incentives

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

Incentive name Implementing body Value
Austin Energy Rebate Austin Energy Rebate worth up to $2,500
Solar PV Rebate San Marcos Electric Utility (SMTX)  Rebate worth up to $2,500
SMART Source Solar PV Program AEP Texas North Company Rebate worth up to $6,000
SMART Source Solar PV Program AEP Texas Central Company Rebate worth up to $5,000
Oncor Residential Solar Program Oncor Electric Delivery Rebates for eligible solar & battery projects
Garland Power & Light buyback program Garland Power & Light Garland Power & Light buys back excess solar production for $0.0669 per kWh
Denton Municipal Electric (DME) solar rebate Denton Municipal Electric (DME) Solar rebate with an average award amount of $4,000
New Braunfels Utilities solar rebate New Braunfels Utilities Solar rebate worth up to $3,000

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.

Incentive name Implementing body Value
Property tax exemption State of VA Value of solar energy system won’t increase your property tax valuation
Net metering State of VA Residential solar owners are compensated for their excess generation at retail value
Solar Renewable Energy Credits (SRECs) State of VA Market value of $55 per SREC in June 2023 would yield $400-500 per year for the average residential system.

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.