SunPowerPeek

Solar Incentives by State (2026)

Every US homeowner qualifies for the 30% Federal Solar Investment Tax Credit through 2032. Many states offer additional tax credits, rebates, and Solar Renewable Energy Credits (SRECs).

Federal Incentive

Federal Solar Investment Tax Credit (ITC)

The federal ITC allows homeowners to deduct 30% of solar installation costs from federal taxes. Available for systems installed through 2032, stepping down to 26% in 2033 and 22% in 2034.

30% of system cost

State Incentives

Arizona

2 incentives

Arizona Net Metering

Arizona utilities offer net metering that credits solar owners at retail electricity rates for excess generation.

Retail rate credit
net metering

Arizona Residential Solar Tax Credit

Arizona offers a personal income tax credit of 25% of the cost of a solar energy device, up to $1,000.

25% up to $1,000
tax credit

California

2 incentives

California Net Energy Metering (NEM 3.0)

California's NEM 3.0 credits solar exports at time-of-use rates. Paired with battery storage, homeowners can maximize savings.

Time-of-use export rates
net metering

Self-Generation Incentive Program (SGIP)

SGIP provides incentives for installing energy storage systems paired with solar panels.

Up to $1,000/kWh for battery
rebate

Colorado

2 incentives

Xcel Energy Solar*Rewards

Xcel Energy customers may receive rebates for installing residential solar systems.

$500-$2,000
rebate

Colorado Sales Tax Exemption

Solar energy equipment is exempt from Colorado state sales tax.

100% sales tax exempt
tax credit

Connecticut

1 incentive

Connecticut Residential Solar Investment Program

RSIP provides per-watt incentives for residential solar installations.

$0.44/W
rebate

Expires: 2026-12-31

DC

1 incentive

DC Solar Renewable Energy Credits

Washington DC offers some of the highest SREC values in the nation.

$300-400/SREC
srec

Florida

2 incentives

Florida Property Tax Exemption

Solar installations are exempt from property tax assessment increases in Florida.

100% property tax exempt
tax credit

Florida Sales Tax Exemption

Solar energy systems are exempt from Florida's 6% sales tax.

100% sales tax exempt
tax credit

Hawaii

2 incentives

Hawaii Net Metering

Hawaii's grid-supply program credits excess solar generation at an approved export rate.

Customer grid-supply
net metering

Hawaii Solar Tax Credit

Hawaii offers a state income tax credit of 35% for solar systems, capped at $5,000.

35% up to $5,000
tax credit

Illinois

2 incentives

Illinois Solar for All

Provides incentives for low-income households, nonprofits, and environmental justice communities.

Income-based incentives
rebate

Illinois Shines (Adjustable Block Program)

Illinois Shines provides renewable energy credits (RECs) payments for 15 years for residential solar.

$60-80/REC
srec

Maryland

2 incentives

Maryland Clean Energy Rebate

Maryland offers a $1,000 rebate for residential solar installations.

$1,000
rebate

Expires: 2026-12-31

Maryland SRECs

Maryland's Renewable Portfolio Standard creates demand for Solar Renewable Energy Credits.

$40-60/SREC
srec

Massachusetts

2 incentives

Massachusetts SMART Program

Solar Massachusetts Renewable Target provides per-kWh payments for solar generation over 20 years.

$0.03-0.09/kWh for 20 years
srec

Expires: 2027-12-31

Massachusetts State Tax Credit

Massachusetts offers a personal income tax credit of 15% of solar system cost, up to $1,000.

15% up to $1,000
tax credit

Minnesota

1 incentive

Minnesota Solar*Rewards

Xcel Energy's Solar*Rewards provides incentives for residential solar installations in Minnesota.

Varies by utility
rebate

New Jersey

2 incentives

New Jersey TRECs

Transition Renewable Energy Certificates provide ongoing revenue for solar system owners.

$150-200/TREC
srec

New Jersey Sales Tax Exemption

Solar energy systems are exempt from New Jersey's sales tax.

100% sales tax exempt
tax credit

New Mexico

1 incentive

New Mexico Solar Market Development Tax Credit

New Mexico offers a tax credit of 10% of purchase and installation costs, up to $6,000.

10% up to $6,000
tax credit

Expires: 2027-12-31

New York

3 incentives

NY-Sun Megawatt Block Incentive

NY-Sun provides per-watt incentives through ConEd and other utilities.

$0.20-0.40/W
rebate

Expires: 2026-12-31

New York State Tax Credit

New York offers a personal income tax credit of 25% of qualified solar expenses, capped at $5,000.

25% up to $5,000
tax credit

New York Property Tax Exemption

Solar installations are exempt from property tax increases for 15 years in New York.

15-year exemption
tax credit

North Carolina

1 incentive

Duke Energy NC Solar Rebate

Duke Energy offers per-watt rebates for residential solar systems in North Carolina.

$0.40/W up to $4,000
rebate

Expires: 2026-12-31

Oregon

1 incentive

Oregon Solar + Storage Rebate

Oregon provides per-watt rebates for residential solar and storage installations.

$0.35-0.65/W
rebate

Expires: 2026-12-31

Pennsylvania

1 incentive

Pennsylvania SRECs

Pennsylvania's Alternative Energy Portfolio Standard creates markets for Solar Renewable Energy Credits.

$20-40/SREC
srec

Rhode Island

1 incentive

Rhode Island Renewable Energy Growth Program

REG provides fixed per-kWh payments for residential solar generation over 20 years.

$0.28/kWh for 20 years
srec

South Carolina

1 incentive

South Carolina Solar Tax Credit

South Carolina offers a 25% state tax credit for solar energy systems, one of the highest in the nation.

25% of cost
tax credit

Texas

2 incentives

Austin Energy Solar Rebate

Austin Energy provides rebates for residential solar installations.

$2,500 rebate
rebate

Texas Property Tax Exemption

Solar installations are exempt from property tax increases in Texas.

100% property tax exempt
tax credit

Utah

1 incentive

Utah Sales Tax Exemption

Solar energy equipment is exempt from Utah sales tax.

100% sales tax exempt
tax credit

Vermont

1 incentive

Vermont Net Metering

Vermont's net metering program credits solar generation at close to retail rates.

Retail rate credit
net metering

Virginia

1 incentive

Virginia Solar Property Tax Exemption

Virginia exempts solar installations from local property tax assessment.

Exempt from property tax
tax credit

Washington

1 incentive

Washington Sales Tax Exemption

Solar energy equipment is exempt from Washington state sales tax.

100% sales tax exempt
tax credit

Wisconsin

1 incentive

Focus on Energy Solar Incentive

Wisconsin's Focus on Energy program offers incentives for residential solar installations.

$500-$1,000
rebate

All States Qualify for Federal 30% Tax Credit

Even states without additional state-level incentives benefit from the federal 30% solar investment tax credit. Click any state to see full solar cost and savings data.

Data verified March 2026 · Source: DSIRE, IRS, State Energy Offices