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.
State Incentives
Arizona
2 incentivesArizona Net Metering
Arizona utilities offer net metering that credits solar owners at retail electricity rates for excess generation.
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.
California
2 incentivesCalifornia 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.
Self-Generation Incentive Program (SGIP)
SGIP provides incentives for installing energy storage systems paired with solar panels.
Colorado
2 incentivesXcel Energy Solar*Rewards
Xcel Energy customers may receive rebates for installing residential solar systems.
Colorado Sales Tax Exemption
Solar energy equipment is exempt from Colorado state sales tax.
Connecticut
1 incentiveConnecticut Residential Solar Investment Program
RSIP provides per-watt incentives for residential solar installations.
Expires: 2026-12-31
DC
1 incentiveDC Solar Renewable Energy Credits
Washington DC offers some of the highest SREC values in the nation.
Florida
2 incentivesFlorida Property Tax Exemption
Solar installations are exempt from property tax assessment increases in Florida.
Florida Sales Tax Exemption
Solar energy systems are exempt from Florida's 6% sales tax.
Hawaii
2 incentivesHawaii Net Metering
Hawaii's grid-supply program credits excess solar generation at an approved export rate.
Hawaii Solar Tax Credit
Hawaii offers a state income tax credit of 35% for solar systems, capped at $5,000.
Illinois
2 incentivesIllinois Solar for All
Provides incentives for low-income households, nonprofits, and environmental justice communities.
Illinois Shines (Adjustable Block Program)
Illinois Shines provides renewable energy credits (RECs) payments for 15 years for residential solar.
Maryland
2 incentivesMaryland Clean Energy Rebate
Maryland offers a $1,000 rebate for residential solar installations.
Expires: 2026-12-31
Maryland SRECs
Maryland's Renewable Portfolio Standard creates demand for Solar Renewable Energy Credits.
Massachusetts
2 incentivesMassachusetts SMART Program
Solar Massachusetts Renewable Target provides per-kWh payments for solar generation over 20 years.
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.
Minnesota
1 incentiveMinnesota Solar*Rewards
Xcel Energy's Solar*Rewards provides incentives for residential solar installations in Minnesota.
New Jersey
2 incentivesNew Jersey TRECs
Transition Renewable Energy Certificates provide ongoing revenue for solar system owners.
New Jersey Sales Tax Exemption
Solar energy systems are exempt from New Jersey's sales tax.
New Mexico
1 incentiveNew Mexico Solar Market Development Tax Credit
New Mexico offers a tax credit of 10% of purchase and installation costs, up to $6,000.
Expires: 2027-12-31
New York
3 incentivesNY-Sun Megawatt Block Incentive
NY-Sun provides per-watt incentives through ConEd and other utilities.
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.
New York Property Tax Exemption
Solar installations are exempt from property tax increases for 15 years in New York.
North Carolina
1 incentiveDuke Energy NC Solar Rebate
Duke Energy offers per-watt rebates for residential solar systems in North Carolina.
Expires: 2026-12-31
Oregon
1 incentiveOregon Solar + Storage Rebate
Oregon provides per-watt rebates for residential solar and storage installations.
Expires: 2026-12-31
Pennsylvania
1 incentivePennsylvania SRECs
Pennsylvania's Alternative Energy Portfolio Standard creates markets for Solar Renewable Energy Credits.
Rhode Island
1 incentiveRhode Island Renewable Energy Growth Program
REG provides fixed per-kWh payments for residential solar generation over 20 years.
South Carolina
1 incentiveSouth Carolina Solar Tax Credit
South Carolina offers a 25% state tax credit for solar energy systems, one of the highest in the nation.
Texas
2 incentivesAustin Energy Solar Rebate
Austin Energy provides rebates for residential solar installations.
Texas Property Tax Exemption
Solar installations are exempt from property tax increases in Texas.
Utah
1 incentiveUtah Sales Tax Exemption
Solar energy equipment is exempt from Utah sales tax.
Vermont
1 incentiveVermont Net Metering
Vermont's net metering program credits solar generation at close to retail rates.
Virginia
1 incentiveVirginia Solar Property Tax Exemption
Virginia exempts solar installations from local property tax assessment.
Washington
1 incentiveWashington Sales Tax Exemption
Solar energy equipment is exempt from Washington state sales tax.
Wisconsin
1 incentiveFocus on Energy Solar Incentive
Wisconsin's Focus on Energy program offers incentives for residential solar installations.
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