{"id":6,"count":41,"description":"Rebates and incentives are a crucial way to encourage broader adoption of solar energy and <a href=\"https:\/\/www.solar.com\/learn\/home-energy-efficiency-rebates-and-tax-credits\/\" target=\"_blank\" rel=\"noopener\">full home electrification<\/a> across the country.\r\n\r\nThese incentives will typically come from your utility, state government, or the federal government in the form of tax credits, property tax abatements, one-time rebates, or performance-based rebates.\r\n\r\nLowering the cost of going solar helps more people in your community go solar, which supports clean air, a more resilient energy grid, lower energy prices, and lower fossil fuel emissions.\r\n\r\n<strong>Related: <\/strong><a href=\"https:\/\/www.solar.com\/learn\/solar-rebates-by-state\/\" target=\"_blank\" rel=\"noopener\">Solar Rebates by State<\/a>\r\n<h2>Solar Incentives and Rebates Terms<\/h2>\r\nThe concept of solar incentives is simple: Reduce the cost of solar to make clean energy accessible to more people.\r\n\r\nBut solar incentives are a rat's nest of acronyms and industry terms that can be difficult to untangle. We're here to help with this handy-dandy cheat sheet.\r\n\r\nFirst, some basic terms:\r\n<ul>\r\n \t<li><strong>Solar Incentives:<\/strong> Incentives provided to a homeowner or business installing solar by a government agency or utility in order to accelerate solar adoption.<\/li>\r\n \t<li><strong>Rebates:<\/strong> A one-time incentive for solar installations offered by utilities and\/or government agencies.<\/li>\r\n \t<li><strong>Tax Credit<\/strong>: A direct dollar-for-dollar deduction from your income taxes that you would normally pay to the federal government.<\/li>\r\n \t<li><strong>Tax Deduction<\/strong>: Deduction of taxable income that can increase your refund or reduce how much tax you owe.<\/li>\r\n \t<li><strong>Utility Rebates<\/strong>: Cash refunds utilities pay to homeowners to help promote the adoption of solar in order to meet their qualifications.<\/li>\r\n<\/ul>\r\n<span style=\"color: #ffffff\">*<\/span>\r\n\r\n[pnpZip background=true border=true primary_color=\"#8b72d3\" content_texts=true utm_campaign=\"get_started_injectable\" utm_medium=\"solar rebates and incentives\" upper_text= \"Team up with a dedicated\" upper_text_span = \"Energy Advisor\" lower_text= \"Explore solar incentives in\" lower_text_span = \"your area\" get_started_text = \"Get started\"]\r\n\r\n<span style=\"color: #ffffff\">*<\/span>\r\n<h2>Solar Incentive and Rebate Programs<\/h2>\r\n<h3>Federal Solar Investment Tax Credit (ITC)<\/h3>\r\nIn 2026, there is no longer a federal solar tax credit for homeowners to claim directly. The Section 25D \"Residential Clean Energy Credit\" was terminated by the <a href=\"https:\/\/www.solar.com\/learn\/trump-and-the-fate-of-the-30-solar-tax-credit\/\" target=\"_blank\" rel=\"noopener\">Trump Administration via the Big Beautiful Bill<\/a>.\r\n\r\nHowever, homeowners can still\u00a0<em>benefit\u00a0<\/em>from the 48E \"Clean Electricity Investment Credit\" claimed by businesses that own and operate residential solar systems. This arrangement is called Third-Party Ownership (TPO) and includes the following:\r\n<ul>\r\n \t<li><a href=\"https:\/\/www.solar.com\/learn\/solar-lease\/\">Leasing Solar Panels<\/a><\/li>\r\n \t<li><a href=\"https:\/\/www.solar.com\/learn\/power-purchase-agreement\/\">Power Purchase Agreements<\/a><\/li>\r\n \t<li><a href=\"https:\/\/www.solar.com\/learn\/prepaid-solar-leases-ppas\/\">Prepaid Solar Products<\/a><\/li>\r\n<\/ul>\r\nIn third-party owned solar, the business claims the 48E tax credit and passes value to the homeowner via lower monthly or upfront payments.\r\n<h3>Local Rebates<\/h3>\r\nOne-time incentives for homeowners installing solar, distributed through local jurisdictions, such as a city or county.\r\n\r\nLocal solar rebate examples include:\r\n<ul>\r\n \t<li>The city of <a href=\"https:\/\/www.fcgov.com\/utilities\/residential\/renewables\/solar-rebates\" target=\"_blank\" rel=\"noopener\">Fort Collins, Colo. offers a local rebate<\/a> of $250 per kW of solar installed up to $1,000<\/li>\r\n \t<li>The city of <a href=\"https:\/\/www.sunsetvalley.org\/residents\/community-programs\/rebate-programs\/solar-rebate-program\" target=\"_blank\" rel=\"noopener\">Sunset Valley, Texas offers a solar rebate<\/a> of $1 per Watt up to 3,000 Watts ($3,000)<\/li>\r\n \t<li>The city of <a href=\"https:\/\/www.phila.gov\/programs\/solar-rebate-program\/\" target=\"_blank\" rel=\"noopener\">Philadelphia created a solar rebate program in 2019<\/a> that offered rebates of $0.20 per watt for residential projects. However, this program was suspended due to budget cuts related to COVID-19<\/li>\r\n \t<li>Energy Smart Colorado partners with communities and utilities to offer <a href=\"https:\/\/energysmartcolorado.org\/rebates-for-your-home\/\" target=\"_blank\" rel=\"noopener\">rebates for installing solar panels and other energy efficiency measures<\/a><\/li>\r\n<\/ul>\r\n<span style=\"color: #ffffff\">*<\/span>\r\n\r\n[pnpZip background=true border=true primary_color=\"#8b72d3\" content_texts=true utm_campaign=\"get_started_injectable\" utm_medium=\"solar rebates and incentives\" upper_text= \"Team up with a dedicated\" upper_text_span = \"Energy Advisor\" lower_text= \"Explore solar incentives in\" lower_text_span = \"your area\" get_started_text = \"Get started\"]\r\n\r\n<span style=\"color: #ffffff\">*<\/span>\r\n<h3>Performance-Based Incentive (PBI)<\/h3>\r\nPBIs are incentives based on the energy production of a solar system. This compensation is based on the amount of energy (in kWh) a solar system produces over a given period of time.\r\n\r\nSince the incentive is based on production, PBIs encourage installers and solar owners to prioritize performance and maintenance over time.\r\n\r\nFor example:\r\n<ul>\r\n \t<li><strong>The <a href=\"https:\/\/www.solar.com\/learn\/massachusetts-smart-solar-program-complete-overview\/\" target=\"_blank\" rel=\"noopener\">Solar Massachusetts Renewable Target (SMART)<\/a> program<\/strong> offers performance-based incentives of up to $0.043 per kWh produced<\/li>\r\n \t<li><strong><a href=\"https:\/\/www.solar.com\/learn\/going-solar-in-new-jersey-cost-and-incentives\/\" target=\"_blank\" rel=\"noopener\">New Jersey's Successor Solar Incentive Program (SuSI)<\/a><\/strong> awards one certificate worth up to $90 for every 1,000 kWh of solar electricity produced over 15 years.<\/li>\r\n<\/ul>\r\n<h3>Renewable Energy Certificates (RECs)<\/h3>\r\n<a href=\"https:\/\/www.solar.com\/learn\/what-are-solar-srecs\/\" target=\"_blank\" rel=\"noopener\">Renewable Energy Certificates (RECs)<\/a> allow homeowners to sell renewable energy back to utilities that need a certain amount of renewable energy certificates to meet governmental regulations.\r\n\r\n1 REC = 1-megawatt hour = 1,000-kilowatt hours of energy\r\n\r\nA typical solar system earns between three to seven RECs per year, depending on the size, which solar owners can sell or trade on the market. This is another way to incentivize solar adoption and production among homeowners.\r\n<h3>Solar Renewable Energy Certificates (SRECs)<\/h3>\r\nSRECs are nearly identical to RECs, except SRECs are specific to energy produced by solar photovoltaic systems (hence the name <em>solar<\/em> renewable energy certificates).\r\n\r\nSRECs aren't available in all states and the price of the certificates are constantly changing.\r\n\r\n<img class=\"aligncenter size-medium\" src=\"https:\/\/s3.amazonaws.com\/solarassets\/wp-content\/uploads\/2022\/10\/SREC-markets-map.jpg\" alt=\"solar rebates and incentives srecs\" width=\"1200\" height=\"854\" \/>\r\n<h3>State Solar Rebate Programs<\/h3>\r\n<a href=\"https:\/\/www.solar.com\/learn\/solar-rebates-by-state\/\" target=\"_blank\" rel=\"noopener\">Several states offer rebate programs<\/a> that cover some or all of the cost of purchasing a home solar system and\/or battery storage. These rebates can work in addition with the federal tax credit to increase the savings of going solar.\r\n\r\nFor example:\r\n<ul>\r\n \t<li><strong><a href=\"https:\/\/www.oregon.gov\/energy\/Incentives\/Pages\/OSSRP-For-Homeowners.aspx\">Oregon offers rebates<\/a><\/strong> of up to $5,000 for solar systems and $2,500 for battery storage systems<\/li>\r\n \t<li><strong><a href=\"https:\/\/www.solar.com\/learn\/going-solar-in-new-york-state\/\" target=\"_blank\" rel=\"noopener\">New York offers upfront rebates<\/a><\/strong> of up to 20 cents per Watt of solar capacity installed<\/li>\r\n \t<li><a href=\"https:\/\/energy.maryland.gov\/residential\/Pages\/incentives\/CleanEnergyGrants.aspx\" target=\"_blank\" rel=\"noopener\"><strong>Maryland offers a $1,000<\/strong> <strong>rebate<\/strong><\/a> for solar photovoltaic and solar shingle installations above 1 kW.<\/li>\r\n \t<li><strong><a href=\"https:\/\/www.solar.com\/learn\/sgip-info-battery-storage-rebate-up-to-100-percent\/\" target=\"_blank\" rel=\"noopener\">California offers rebates for up to $1,000 per kWh<\/a><\/strong> of battery storage capacity for qualifying homeowners.<\/li>\r\n<\/ul>\r\n<h3>State Solar Tax Credits<\/h3>\r\nSome states offer solar tax credits that can be claimed <em>in addition\u00a0<\/em>to the 30% federal solar tax credit.\r\n\r\nFor example:\r\n<ul>\r\n \t<li><strong><a href=\"https:\/\/www.solar.com\/learn\/going-solar-in-new-york-state\/\"> New York state has a 25% solar tax credit<\/a><\/strong> with a maximum value of $5,000<\/li>\r\n \t<li><strong><a href=\"https:\/\/www.capitol.hawaii.gov\/hrscurrent\/Vol04_Ch0201-0257\/HRS0235\/HRS_0235-0012_0005.htm\" target=\"_blank\" rel=\"noopener\">Hawaii has a 35% state solar tax credit<\/a><\/strong> with a maximum value of $5,000<\/li>\r\n \t<li><a href=\"https:\/\/energy.utah.gov\/tax-credits\/renewable-energy-systems-tax-credit\/\" target=\"_blank\" rel=\"noopener\"><strong>Utah has a solar tax credit<\/strong><\/a> with a maximum value of $400 for residential installations<\/li>\r\n \t<li><a href=\"https:\/\/screc.org\/understanding-tax-credits-1\" target=\"_blank\" rel=\"noopener\"><strong>South Carolina has a 25%<\/strong><\/a><strong> state tax credit\u00a0<\/strong>worth up to $35,000 or 50% of the taxpayer's liability for the year (whichever is less)<\/li>\r\n \t<li><a href=\"https:\/\/www.mass.gov\/regulations\/830-CMR-6261-residential-energy-credit\" target=\"_blank\" rel=\"noopener\"><strong>Massachusetts has a 15% state tax credit<\/strong><\/a> worth up to $1,000<\/li>\r\n<\/ul>\r\n<h3>Solar property tax exemptions and abatements<\/h3>\r\nIt's well documented that <a href=\"https:\/\/www.solar.com\/learn\/do-solar-panels-increase-home-value\/\" target=\"_blank\" rel=\"noopener\">solar systems increase property value<\/a>, just like updating a kitchen or installing new appliances does.\r\n\r\nWhile that's great during a home sale, higher property value also means higher property taxes.\r\n\r\nFortunately, most places offer either an exemption or abatement on the value added by home solar systems.\r\n<ul>\r\n \t<li><strong>Abatement:\u00a0<\/strong>A reduction in property taxes over a certain period of time<\/li>\r\n \t<li><strong>Exemption:\u00a0<\/strong>A reduction in the taxable value of the property<\/li>\r\n<\/ul>\r\nIn fact, more than 30 states have statewide or local solar property tax exemptions, show in purple below, and <a href=\"https:\/\/www.solar.com\/learn\/new-york-citys-solar-property-tax-abatement-ends-soon\/\" target=\"_blank\" rel=\"noopener\">New York City has a solar property tax abatement<\/a> worth up to 20% of the cost of the solar system.\r\n\r\n<img class=\"aligncenter wp-image-9959 size-full\" src=\"https:\/\/s3.amazonaws.com\/solarassets\/wp-content\/uploads\/2022\/10\/solar-property-tax-exemptions-map.png\" alt=\"solar property tax exemptions map\" width=\"750\" height=\"533\" \/>\r\n<h3>Net Energy Metering<\/h3>\r\nThis is the billing system that some utilities use to compensate you for sending your generated solar energy back into the grid.\r\n\r\nThese credits can be used to offset the costs of electricity that you use when your solar panels are not able to generate any energy. Not all states use this billing system, but you can <a href=\"https:\/\/www.solar.com\/learn\/what-is-net-energy-metering\/\" target=\"_blank\" rel=\"noopener\">check to see if your's does here<\/a>.\r\n<h2>The Bottom Line<\/h2>\r\nThanks to the 30% Residential Clean Energy Credit created by the Inflation Reduction Act, any homeowner in the US who wants to go solar is eligible a substantial incentive.\r\n\r\nAnd many homeowners will be eligible for additional incentives through their state, city, or utility. It's worth taking the time to research incentives in your area to maximize your savings with solar.\r\n\r\nBetter yet, <a href=\"https:\/\/www.solar.com\/dashboard\" target=\"_blank\" rel=\"noopener\">connect with an Energy Advisor<\/a> to explore the incentives available to you.","link":"https:\/\/www.solar.com\/learn\/solar-rebates-incentives\/","name":"Solar Rebates &amp; Incentives","slug":"solar-rebates-incentives","taxonomy":"category","parent":0,"meta":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.5 (Yoast SEO v19.10) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Do Solar Rebates and Incentives Work in 2026? | Solar.com<\/title>\n<meta name=\"description\" content=\"Learn about the available solar rebates and incentives in your area. 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