Solar Incentives and Rebates by State
Learn what incentives your state offers to make solar energy more affordable.
Key Takeaways
- Many states with a higher number of sunshine days have plenty of solar incentives (beyond regulatory policies). Other states may have a limited amount of solar opportunities but are still open to increasing their offerings.
- Some incentives are specific to agriculture, commercial, or businesses only. These will often have stipulations that the applicant must investigate prior to applying.
State Solar Incentives
Solar incentives have been rolled out at both the state and federal levels in hopes of helping more residents utilize sustainable solar renewable energy sources. In fact, the Federal Solar Investment Tax Credit under the Inflation Reduction Act is now extended through at least 2025 to allow for up to a 30% federal tax credit for qualifying investments in various solar systems.
In addition to the federal solar tax credit, there are plenty of other solar tax credits and incentives available at the state, municipality, or level of utility companies that can help further reduce solar installation costs. Some are even town-specific and help local communities and schools; others hope to open up solar incentives to underserved and low-income residents.
Arizona Solar Incentives
The sunny state of Arizona has plenty of solar regulatory policies, but there are still solar tax credits residents can take advantage of.
| Incentive | Administrator | Value |
|---|---|---|
| Arizona State Residential Solar Income Tax Credit | State of AZ | 25% of solar installation costs up to $1,000 |
California Solar Incentives
The highest producer of solar energy in the nation, California has always been ahead of the game when it comes to energy-saving and environmentally-friendly initiatives. The state has both federal and state incentives. Note: Some are agriculture-specific.
| Incentive | Administrator | Value |
|---|---|---|
| Partial Sales and Use Tax Exemption for Agricultural Solar Power Facilities (Agriculture only) | California State Board of Equalization | 100% of the taxes levied by the State. Local and district sales taxes will still apply. |
| Santa Clara Water & Sewer - Solar Water Heating Program | City of Santa Clara Water & Sewer Utility | Initial solar power system installation, fee and monthly utility fee required. (For both solar panels and pool heating systems, the installation cost is $4,128 plus $242 per solar panel or solar system used.) |
Colorado Solar Incentives
Colorado is not too far from California in its flexibility and forward-thinking of its renewable energy projects and solar initiatives. In fact, Colorado was one of the first states to have a Renewable Energy Standard.
| Incentive | Administrator | Value |
|---|---|---|
| Xcel Energy - Solar*Rewards Program | Xcel Energy | Income-Qualified: $1/W
C&I: 8-250 kW: $0.04/kWh 250.1-500 kW: $0.0375/kWh 500.1 kW - 1 MW: $0.035/kWh Large: Determined through competitive bid |
| City of Boulder - Solar Sales and Use Tax Rebate | City of Boulder | ~15% solar tax credit refundable on sales and use tax for the solar panel system installation |
| Xcel Energy - Solar Rewards Program | Xcel Energy |
Solar*Rewards Small Program: REC Price: $0.005/kWh
Solar Rewards Medium Program: REC Price: $0.0375/kWh Solar Rewards Large Program: See program website. Also, see program site for maximum amount of solar power system incentives. |
| City of Boulder - Solar Grant Program | City of Boulder | $1 per watt based on solar system capacity |
| Black Hills Energy - Solar Power Program | Black Hills Energy | Systems sized 0.5 kW - 30 kW: $0.030 per kWh is paid over a 10-year period
Systems sized 30.001 kW - 500 kW: $0.060 per kWh is paid over a 10-year period |
Connecticut Solar Incentives
Although a small state, Connecticut has solar potential that can help offset some of the higher electricity bills for residents. And as Connecticut ranks one of the top 10 states with the highest electricity bills, there is more than enough incentive to make the switch to solar.
| Incentive | Administrator | Value |
|---|---|---|
| Sales and Use Tax Exemption for Solar and Geothermal Systems | Connecticut Department of Revenue Services | 100% exemption |
Go with the pros – we’ve been around for 25+ years, making us your trusted choice.
Or call us directly at 866-421-5528
Florida Solar Incentives
It’s no surprise that the Sunshine State is full of solar energy potential. Incentives vary based on region.
| Incentive | Administrator | Value |
|---|---|---|
| Orlando Utilities Commission - Solar Programs | Orlando Utilities Commission (OUC) | Solar Therm: $900 rebate |
| Solar and CHP Sales Tax Exemption | Florida Department of Revenue | Commercial, Residential, Agricultural sales tax incentive with no limit |
| Clay Electric Cooperative, Inc - Solar Thermal Loans | Clay Electric Cooperative | $10,000 maximum loan |
| City of Tallahassee Utilities - Solar Water Heating Rebate | City of Tallahassee Utilities | $450 |
| Fort Pierce Utilities Authority - Solar Water Heating Rebate | Fort Pierce Utilities Authority | $450 per system |
| JEA - Solar Incentive Program | JEA | $400 |
| Beaches Energy Services - Solar Water Heating Rebate Program | Beaches Energy Services | Solar Water Heater: $500 |
| Ocala Utility Services - Solar Hot Water Heating Rebate Program | Ocala Utility Services | $450 per system |
| Clay Electric Cooperative, Inc - Energy Smart Solar Water Heater Rebate Program | Clay Electric Cooperative | $0.01 per BTU output (maximum $600 incentive) |
| City of Tallahassee Utilities - Solar Loans | City of Tallahassee Utilities | Solar PV or ENERGY STAR roofing: $20,000 Other Measures: Varies |
| Florida Keys Electric Cooperative - Solar Loan Program | Florida Keys Electric Cooperative | $35,000 |
| Solar and Energy Loan Fund (SELF) | Solar and Energy Loan Fund (SELF) | $50,000 |
Illinois Solar Incentives
Illinois has a number of solar incentives available—even ones that focus on solar accessibility for those who may live in low-income communities or households.
| Incentive | Administrator | Value |
|---|---|---|
| Sales Tax Exemption for Wind and Solar Energy - High Impact Business | Illinois Department of Commerce and Economic Opportunity | 100% exemption of Retailers' Occupation Tax for building materials incorporated into the facility |
| Illinois Solar for All Program | State of Illinois | Varies by program and year |
| Improvement Valuation of Commercial Solar Energy Systems | Illinois Department of Revenue | Property tax assessment (value varies) |
| Special Assessment for Solar Energy Systems | Illinois Department of Commerce and Economic Opportunity | Varies, no maximum specified |
Indiana Solar Incentives
Indiana has a huge growth projection when it comes to its solar energy systems. Utilities still take the lead over residential for the annual solar panel system installations, but there are federal residential solar tax credits available.
| Incentive | Administrator | Value |
|---|---|---|
| Residential Clean Energy Tax Credit | Federal Government of United States | 30% of total solar panels installation costs (no maximum to be obtained) |
Maryland Solar Incentives
Maryland has its fair share of users participating in solar incentives that extend beyond residential clean energy credit. In fact, even parking lots are given the chance to participate.
| Incentive | Administrator | Value |
|---|---|---|
| Solar Renewable Energy Certificates (SRECs) | State of Maryland | Varies based on market conditions |
| Sales and Use Tax Exemption for Residential Solar and Wind Electricity Sales | Comptroller of Maryland | 100% exemption from sales and use tax |
| Property Tax Exemption for Solar and Wind Energy Systems | Maryland Department of Assessments and Taxation | 100% real property tax exemption for solar and wind energy property |
| Parking Lot Solar PV with EV Charger Grant Program | Maryland Energy Administration | Up to $600 per kW (DC) of PV installed per project |
| Baltimore County - Property Tax Credit for Solar and Geothermal Devices | Baltimore County Office of Budget and Finance | 50% of eligible costs |
| Anne Arundel County - Solar and Geothermal Equipment Property Tax Credits | Anne Arundel County Office of Finance | 50% of the cost of materials and the full solar system cost of the solar energy system installation alone, less any federal and state grants and state solar energy tax credits |
| Prince George's County - Solar and Geothermal Residential Property Tax Credit | Prince George's County Office of Finance | 50% of eligible costs |
| Harford County - Property Tax Credit for Solar and Geothermal Devices | Harford County Department of the Treasury | 100% of total real property taxes on the host structure for one year |
Massachusetts Solar Incentives
Despite the fact it’s a smaller state compared to others, Massachusetts has plenty of opportunities for solar incentives at both the residential and commercial levels.
| Incentive | Administrator | Value |
|---|---|---|
| Residential & Small-Scale Solar Hot Water Program | Massachusetts Clean Energy Center (MassCEC) | Amount of solar incentives varies based on multiple factors; see program description for details. |
| Excise Tax Exemption for Solar or Wind Powered Systems | Massachusetts Department of Revenue | 100% of the tangible property portion of the excise tax |
| Excise Tax Deduction for Solar or Wind Powered Systems | Massachusetts Department of Revenue | 100% |
| Concord Municipal Light Plant - Solar Photovoltaic Rebate Program | Photovoltaic Rebate Program | $625/kW-DC |
| Reading Municipal Light Department - Residential and Small Commercial Solar Rebate Program | Reading Municipal Light Department | $1,200/kW |
| Solar Massachusetts Renewable Target (SMART) Program | Department of Energy Resources / CLEAResult | (Base compensation rate + compensation rate adders - greenfield subtractor) * total kWh generated - value of energy generated |
| Town of Ipswich Electric Light Department Solar PV Rebate Program | Town of Ipswich | $0.30/Watt |
| Shrewsbury Electric & Cable Operations Solar Rebate Program | SELCO | $0.10/Watt |
| Wakefield Municipal Gas & Light Department Solar Rebate Program | Wakefield Municipal Gas & Light Department | $1.20/Watt |
| Residential and Small Commercial Solar Rebate Program | RMLD | $1,200/kW |
Michigan Solar Incentives
Not typically known for its sunny weather, Michigan’s solar incentives are still developing. However, the state of Michigan offers a regulatory policy where contractors can get a full solar panel installer specialty license.
| Incentive | Administrator | Value |
|---|---|---|
| Solar Contractor Licensing | State of Michigan | Solar/wind contractor licensing |
Minnesota Solar Incentives
Minnesota has plenty of solar incentives for many institutions from utility companies to schools.
| Incentive | Administrator | Value |
|---|---|---|
| Wind and Solar-Electric (PV) Systems Exemption | State of Minnesota | Solar: 100% exemption from real property taxes
Wind: 100% exemption from real and personal property taxes |
| Solar Grant Program: Public Buildings | State of Minnesota | Up to 100% of costs |
| Solar for Schools Program | Department of Commerce | Up to 100% of solar system costs |
| Xcel Energy - Solar*Rewards Program | Xcel Energy |
Residential Systems: $0.02/kWh (10 years)
Income-Qualified Residential Systems: $0.02/kWh (10 years), plus $2.00/W up-front Income-Qualified Non-Profit and Government: $0.015/kWh (10 years), plus $1.00/W up-front Income-Qualified For-Profit and Multifamily: $0.015/kWh (10 years), plus $0.50/W up-front |
| Rochester Public Utilities - Solar Rebate Program | Rochester Public Utilities | PV: $500 |
| Owatanna Public Utilities - Solar Rebate Program | Owatanna Public Utilities | PV: $500
Solar Water Heating: $15 per square foot of collector area |
| Minnesota Power - SolarSense Solar Rebate Program | Minnesota Power | $0.56/kWh estimated production in the first year |
| Austin Utilities - Solar Rebate Program | Austin Utilities | PV: $500 flat rebate
Solar Water Heating: $15 per square foot net aperture |
| Solar Energy Sales Tax Exemption | Department of Revenue | 100% exemption |
New Jersey Solar Incentives
New Jersey residential properties are catching up with commercial and there are plenty of incentives to keep residents and businesses considering installing solar panels as good investments.
| Incentive | Administrator | Value |
|---|---|---|
| Successor Solar Incentive (SuSI) Program - Administratively Determined Incentive | Board of Public Utilities |
Net-Metered Residential: $85/SREC-II
Small Net-Metered Non-Residential located on Rooftop, Carport, Canopy and Floating Solar Projects smaller than 1 MW (dc): $110/SREC-II, $130 for public entities Projects 1 MW to 5 MW (dc): $100/SREC-II, $120 for public entities Net Metered Non-Residential Ground Mount Projects smaller than 1 MW (dc): $90/SREC-II, $110 for public entities Projects 1 MW to 5 MW (dc): $85/SREC-II, $105 for public entities Community Solar Permanent Program (LMI only): $90/SREC-II Interim Subsection (t) Grid: $100/SREC-II Subsection (t) applies to facilities located on brownfield, properly closed landfill, or historic fill sites. |
| Successor Solar Incentive (SuSI) Program - Competitive Solar Incentive | Board of Public Utilities | Determined by applicant bids on a per-project basis. |
| Solar Energy Sales Tax Exemption | New Jersey Division of Taxation | 100% exemption |
| Solar Renewable Energy Certificates (SRECs) Registration Program | State of New Jersey | Determined by the market. In June 2016, SREC traded at an average price of $229.90. |
New York Solar Incentives
New Yorkers are always looking to reduce their carbon footprint—luckily, there are plenty of opportunities to take advantage of solar incentives.
| Incentive | Administrator | Value |
|---|---|---|
| Solar Sales Tax Exemption | New York State Department of Taxation and Finance | 100% exemption from state sales tax |
| Local Option - Solar, Wind & Biomass Energy Systems Exemption | New York State Department of Taxation and Finance | 100% exemption for 15 years (unless local jurisdiction has opted out) |
| PSEG Long Island- Commercial Solar PV Feed-in Tariff | PSEG | Fixed price ($/kWh) will be paid for a period of 20 years based on the Clearing Price determined through the Clearing Price Auction. |
| Residential Solar Tax Credit | New York State Department of Taxation and Finance | 25% for solar-electric (PV) and solar-thermal systems; for third-party-owned solar systems, this is in reference to the aggregate amount owed under the contract rather than the amount owed in any single year. |
| New York City - Residential Solar Sales Tax Exemption | City of New York | 100% local sales tax exemption |
Ohio Solar Incentives
Home to more than 200 solar companies, Ohio has seen notable utility companies and businesses that have transitioned to utilizing solar.
| Incentive | Administrator | Value |
|---|---|---|
| Solar Renewable Energy Certificates Program (SRECs) | State of Ohio | $9.00 per MWh |
| Green Energy Ohio - GEO Solar Thermal Rebate Program | Green Energy Ohio | $30 per kBtu/day |
Pennsylvania Solar Incentives
Pennsylvania has mapped out a clear plan to achieve their solar power goals by offering solar rebates, solar tax credits, and solar incentives to get the state on track.
| Incentive | Administrator | Value |
|---|---|---|
| City of Philadelphia - Solar Rebate Program | City of Philadelphia |
Residential: $0.20 per watt of solar installed
Commercial: $0.10 per watt of solar installed |
| Solar Alternative Energy Credits | State of Pennsylvania | Varies based on market conditions; during 2022 the market price for PA-sourced SRECs ranged between $30 - $47/MWh. |
| Solar Energy Loan Program | Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP) |
Maximum loan: Manufacturer of solar equipment: $40,000 for every new job projected to be created within 3 years.
Solar energy generation or distribution project: $5 million or $3 per watt. Solar research and development facility: $5 million. 25% matching investment required for all loan amounts |
| Solar Energy Incentives Program | Department of Community and Economic Development | Varies by project, but the program generally requires matching funds at least equivalent to DCED funding. |
Texas Solar Incentives
The Lone Star State has an enormous amount of solar incentives that include everything from solar rebate programs to solar investment tax credit and exemptions.
| Incentive | Administrator | Value |
|---|---|---|
| Garland Power & Light - EnergySaver Solar Rebate Program | Garland Power & Light | $0.0669/kWh excess energy produced |
| AEP Texas North Company - SMART Source Solar PV Rebate Program | Frontier Associates and Clean Energy Associates |
Residential: $0.5/watt
Non-residential: $0.25 - $0.5/watt |
| AEP Texas Central Company - SMART Source Solar PV Rebate Program | Frontier Associates and Clean Energy Associates |
Residential: $0.50/W DC
Non-residential: $0.25 - $0.50/W DC |
| Austin Energy - Residential Solar PV Rebate Program | Austin Energy | $2,500 |
| Austin Energy - Multifamily Solar PV Rebate Program | Austin Energy | $0.60/W for multifamily properties with at least two units. $1.00/W for nonprofit properties that are not eligible for the federal solar tax credit. |
| Austin Energy - Commercial Solar PV Rebate Program | Austin Energy |
Small Commercial (up to 75 kW): $0.09/kWh or $0.60/W-DC
Medium Commercial (75-400 kW): $0.09/kWh Large Commercial (400-1000 kW): $0.07/kWh Extra Large Commercial (over 1 MW): $0.05/kWh |
| CPS Energy - Solar PV Rebate Program | CPS Energy | $0.60/Watt for the first 25 kW $0.40/Watt thereafter. Additional $0.10/Watt for locally-produced solar panels |
| Oncor Electric Delivery - Residential Solar Program | Oncor Electric Delivery | Contact utility |
| Oncor Electric Delivery - Commercial Solar Program | Oncor Electric Delivery | Contact utility |
| Austin Energy - Commercial Solar PV Incentive Program | Austin Energy |
Maximum incentive for CBI Program:
Non-Profit System: $482,000 Small Commercial System: $54,000 |
| CPS Energy - Solar Hot Water Rebate Program | CPS Energy | $0.60 per kWh saved annually (conventional 50-gallon electric water heater) |
| Solar and Wind Energy Business Franchise Tax Exemption | Comptroller of Public Accounts | Companies are exempt from franchise tax |
Virginia Solar Incentives
Utility companies have been taking the lead through the state of Virginia. However, there are still state solar tax credit incentives for residents to take advantage of.
| Incentive | Administrator | Value |
|---|---|---|
| Commercial Solar Property Tax Exemption | Virginia Department Energy |
100% exemption for renewable energy projects up to 5 MW, as well as projects up to 20 MW serving public institutions of higher education or private colleges.
80% exemption for projects over 5 MW and less than 150 MW. |
| Local Option - Residential Property Tax Exemption for Solar | Virginia Department of Energy | Varies (local option) |
Conclusion
Investing in a new solar energy system is not just good for the environment, it’s good for your wallet as long-term energy savings add up over time. Between city, state, and federal incentives, there are plenty of options to choose from when it comes to deciding where and how to save money when you install solar panels.