Incentives for switching to solar in your state
Federal Solar Tax Credit or Investment Tax Credit (ITC)
The Investment Tax Credit is available to all, no matter the state you inhabit. Currently, this incentive provides a 30% deduction on the cost of installing your solar power system from your federal taxes.
The Solar Investment Tax Credit will remain at 30% until 2032, in which it’s scheduled to decrease to 26%.
What about ITC Extensions?
In August 2022, Congress extended the ITC, giving homeowners more time to switch to solar and take advantage of the tax rebate. While there is a chance for another extension, switching to solar now will allow you to take advantage of the highest tax rebate available, and you’ll start enjoying the energy savings of your solar power system right away.
Other Incentives Your State May Offer
Choose a state to discover what solar incentives are available.
If you reside in Sweet Home Alabama, you’ll be happy to know the state is slowly becoming sweeter on solar energy. Alabama might be known as a strong producer of the natural resources we use to create iron and steel, but it’s also a great state for producing solar energy. Alabama’s solar incentives are attractive enough to encourage homeowners in the state to make the switch.
Property Tax Exemption: Based on the Alabama tax code (Section 40-9B-1), one can access various property tax credits for renewable energy.
Federal Solar Tax Credit (ITC): Available to every state, this 30% tax credit, also known as the Residential Clean Energy Credit, is offered to homeowners installing a solar panel system. The credit will decrease to 26% in 2033.
AlaskaAside from being the country’s biggest state, Alaska is also an outdoor enthusiast’s dream. The state’s geography is excellent for fishing trips, snowboarding, kayaking, or hours-long hikes. Solar incentives available in Alaska make the state a strong proponent of sustainable energy solutions, therefore the switch to solar is all more enticing.
Net Metering: Yep, Alaska offers net metering to its homeowners. You can send excess energy to the grid for credits.
Federal Solar Tax Credit (ITC): Available to every state, this 30% tax credit, also known as the Residential Clean Energy Credit, is offered to homeowners installing a solar panel system. The credit will decrease to 26% in 2033.
ArizonaSunshine is bountiful in Arizona, easily making it among one of the top 10 solar states in the United States. Arizona also offers a price reduction in solar panel prices and battery storage, encouraging a more affordable switch to solar for homeowners. If you live in the desert state, you’ll be happy to know the incentives here are very generous!
Residential Solar Energy Tax Credits: You’ll receive 25% off the total cost of the solar system, or a maximum of $1,000 from your personal income tax.
Sales Tax Exemptions: You won’t have to pay sales tax on the solar system.
Property Tax Exemptions: If solar installation adds value to your home, this will not be included when your property is assessed for tax.
Net Billing: Instead of Net Metering, Arizona utilizes another incentive called “net billing.” This alternative form of compensation credits customers for the energy sent to their solar grid.
Federal Solar Tax Credit (ITC): Available to every state, this 30% tax credit, also known as the Residential Clean Energy Credit, is offered to homeowners installing a solar panel system. The credit will decrease to 26% in 2033.
ArkansasArkansas has hot springs, diamonds, and a range of solar incentives for homeowners to enjoy when they decide to install solar panels at home.
Solar Easement Policies: Solar easement policies help you get the most out of your solar power system by preventing the objects around your property from obstructing the panel’s energy production.
Net Metering: Yes, Arkansas has net metering. This means you can get credits when you send solar electricity back into the grid.
There’s not much to dislike about California. With perfect weather, beautiful beaches, iconic sights, a vast number of trails, and picturesque National Parks, the state offers a little something for everyone.
California is also a very ambitious state, aiming to rely 100% on carbon-free energy by 2045. To do this, the Golden State is utilizing a wide assortment of incentives for solar energy. This may be why California is considered the best state to go solar.
Local Utility Solar Rebates: Earn cash from your utility company when you install solar panels.
Property Tax Exemptions: In California, you don’t have to worry about an increase in property taxes if a solar power system adds value to your home.
Self-Generation Incentive Program (SGIP): Treat yourself to an incentive when you purchase and install a solar battery with your rooftop solar power system. The amount you’ll receive for the incentive will vary by the utility company and storage capacity.
Single-Family Affordable Solar Housing Program (SASH): Single-family households with an income 80% below the city’s median income can receive rebates for installing solar panels. To qualify, you must receive service from Pacific Gas & Electric (PG&E), Southern California Edison (SCE), or San Diego Gas & Electric (SDG&E).
Net Metering: Californians can send electricity back to the grid for energy credits.
ColoradoColorado’s mountainous region is a draw for many outdoor adventurers who enjoy hiking or skiing down the rocky hills in Vail or Aspen. The state is mostly known for its landscapes, but renewable energy may soon earn more recognition in the area. With an average of 300 days of sunshine a year and solar incentives available to its residents, solar power is revolutionizing how Coloradans can power their properties.
Local Solar Rebates: Several local organizations and utility companies provide rebates for property owners that want to set up solar products. A good example would be EnergySmart Colorado, which can offer rebates up to $3,000. You can also try seeking a rebate from Holy Cross Energy. This organization offers a per-kilowatt incentive for customers to help ease the cost some homeowners feel when they are switching to solar energy. This incentive starts at $500/kW for the first 6 kW you produce.
Property Tax Exemptions: In the Centennial State, homeowners don’t have to worry about an increase in their property taxes after installing solar panels on their home.
Sales Tax Exemptions: With this exemption, you won’t have to pay sales tax on the solar system.
Colorado Community Solar: This program helps homeowners who want to go solar but don’t own their home or don’t have a roof that’s fit for solar panels. With community solar, you can use solar energy from an off-site solar power system.
Net Metering: In Colorado, you can sell any surplus power produced from panels to utility companies.
ConnecticutConnecticut is so much more than just a quaint coastal state with beautiful towns, prestigious universities, gorgeous natural scenery, and a rich historical heritage. It also provides many of its homeowners with a range of solar incentives to sweeten the deal for switching to clean energy.
Rebates: Connecticut offers rebates through their Residential Solar Investment Program (RSIP). With this program, you get a $0.426 per watt cost deduction. This reduction is managed by the Connecticut Green Bank and is usually based on the size of your system.
Sales and Use Tax Exemptions for Solar: Connecticut homeowners don’t have to worry about paying sales tax on a solar system.
Property Tax Exemptions: Your property taxes won’t increase if you purchase a solar system in Connecticut.
Net Metering: Connecticut residents can partake in net metering, earning credit for excess energy generated.
DelawareDelaware, a small state with beautiful beaches and pleasant towns across the coast, has vast solar incentives that make transitioning to clean energy even sweeter for homeowners in the area.
- Delmarva Power and Light: If you’re a Delmarva Power and Light customer, you can cash into a rebate program that cuts back the cost of solar installations. Delmarva Power will also pay $0.55 per watt of solar with a cap of 5kW. After 5 kW, the rebate lowers to $0.20/W.
- Delaware Electric Cooperative: Homeowners using Delaware Electric Cooperative can enjoy a $0.85/W of solar power for up to 5kW and $0.25/W for anything exceeding the cap.
- Delaware Municipal Electrical Corporation (DEMEC): With DEMC’s Municipal Green Energy program, you can receive a cash rebate that will cover a portion of solar installation fees. How much you get on the rebate will depend on where you live.
With a nickname like “The Sunshine State,” you would expect Florida to have plenty of options for statewide solar incentives. The state known for its golf courses, tropical weather, and leisure activities, also recognizes the benefits of renewable energy. This is evident by their impressive solar incentive options.
Sales Tax Exemptions: You won’t have to pay sales tax on the system if you buy it in Florida.
Property Tax Exemptions: Don’t worry about your property taxes skyrocketing after installing solar panels on your roof. Florida offers tax exemption on home value after the installation of a solar power system.
Net Metering: Florida offers net metering. This means homeowners can receive energy credits when they send excess solar energy back to the grid.
GeorgiaFrom vibrant Atlanta to historical Savannah, Georgia is a wonderful state with lots to see and do. If you’re a resident of the Peach state and looking to choose solar power, you have a few incentives available to you.
Net Metering: Georgia does offer net metering, but it’s not required in the state. Therefore, you’ll need to verify eligibility with your utility company.
Living in Hawaii has many obvious perks. But are solar incentives one of them? We think yes. Hawaii has taken different impactful steps to bring them close to generating 100% of their electricity from clean energy sources by 2045. With the number of different solar incentives available in the Aloha State, it looks like they’re well on their way.
Property Tax Exemptions: Say Aloha to a nice reward when you use Hawaii’s property tax credit. Homeowners receive a tax exemption from the value added to their home after installing a solar power system.
Solar Financing: Financing options, like the Renewable Energy Technologies Income Tax Credit (RETITC) and the Green Energy Money Saver Program (GEMS), are available in Hawaii. With RETITC, homeowners receive a tax break on solar installations. The GEMS program provides special financing for rooftop solar power systems, solar batteries, and other solar equipment to eligible applicants.
Self Supply/Grid Supply: Hawaii has moved away from Net Metering and instead offers programs called “Grid Supply” and “Self Supply.” “Grid supply” is most similar to net metering in the sense that you can receive credits for excess energy you send to a utility company or grid. However, you will get paid less than retail prices for it. There is also a cap on energy that will vary depending on your utility company. “Self Supply” applies to the installation of private rooftop solar systems and doesn’t send energy to a utility grid. You will have to use solar batteries to store excess energy.
Idaho, our 43rd state, is known for lush mountainous regions, vast farmland landscapes, and impressive potato production. While Idaho doesn’t typically receive attention for its solar energy efforts, this doesn’t mean the Gem State hasn’t made big steps in promoting renewable energy.
State Tax Credit: Idahoans with solar power systems are eligible for a state tax credit. This credit, known as the Residential Alternative Tax Deduction, means 40% of the cost you paid for solar panels will return to you after filing your taxes. The tax deduction also gives you the freedom to extract 20% of the cost of equipment and installation each year for three years post-installation. The deduction has a max of $5,000 per year and $20,000 total.
Low-Interest Energy Loans: Idaho’s State Energy Loan Program offers low-interest loans for individuals who wish to install solar systems. The loan gives homeowners access to up to $15,000 for a span of five years. The interest rate is 4%.
Solar Easement Policies: Prevent objects around your property from interfering with your solar panel’s energy production by utilizing Idaho’s solar easement policies.
Net Metering: Idaho doesn’t have a statewide requirement for utility companies to provide net metering, but a few companies, like Rocky Mountain Power, offer it and allow customers to sell their extra energy for credit on their utility bill.
IllinoisIf you’re a homeowner in Illinois, you know how nice it is to treat yourself to a deep-dish pizza or a Chicago-style hot dog. There’s also a myriad of professional sports teams you get to watch duke it out on the court. In recent years, the Land of Lincoln has shown an interest in clean energy for its residents. The state has a renewable energy portfolio standard showcasing its firm commitment to producing 25% of its electricity from renewable resources by 2025. To get there, it’s offering homeowners in the state a hefty load of solar incentives.
Property Tax Exemption: There is a tax exemption on the added value your home incurs after the system is installed.
Solar Renewable Energy Credits (SREC): Illinois has an Adjustable Block Program (Illinois Shines) that for each megawatt-hour (MWh) of electricity your solar system produces, you receive one solar renewable energy credit in return.
Illinois Solar for All (ILSFA) Low-Income Community Solar Program: Low-income communities looking to go solar can find incentives from ILSFA.
Net Metering: Yes, Illinois offers net metering. This means you can sell excess solar energy back to the grid. However, the state is also looking to transition to alternative forms of compensation.
Pawnee, Indiana may be fictional, but the state of Indiana still offers its residents lots of charm and tradition across its pastures. Not to mention an impressive résumé of sporting events, tournaments, and professional teams to cheer on. Hoosiers wondering what type of solar incentives they’ll be able to enjoy in their great state will be happy to know there’s more than just the Federal Solar Tax Credit.
Property Tax Exemption: Indiana offers a property tax exemption, meaning the increase in value from adding solar panels to your home won’t increase your taxes.
Sales Tax Exemption: You don’t have to worry about paying a sales tax on the solar power system in Indiana.
Solar Easement Policies: Prevent objects around your property from blocking your panel’s energy production with Indiana’s solar easement policies.
Net Metering: Yes, Indiana currently offers net metering. However, the state is seeking alternative forms of compensation and will phase net metering out completely in 2022. To use net metering in Indiana, your solar power system must be less than 1 megawatt in size.
Iowa is a top state for utilizing renewable energy solutions. Currently, the Hawkeye State offers a variety of incentives to make producing power with solar panels more appealing to homeowners.
Property Tax Exemption: Another great incentive, this renewable energy property tax exemption maintains that any added value to your property from the solar panel’s installation is free from taxation.
Sales Tax Exemption: Your solar power system is free from the state of Iowa’s 6% sales tax.
Solar Easement Policies: Rest easy knowing the items around your property can’t block your panel’s energy production with Iowa’s solar easement policies.
Net Metering: In Iowa, you can sell excess solar energy back to your grid.
The Sunflower State’s growing embrace of renewable energy is making it more affordable and easy for homeowners to switch to solar.
Property Tax Exemption: Thanks to the Renewable Energy Property Tax Exemption, the added value your solar panels bring to your property is exempt from taxation for 10 taxable years.
Solar Easement Policies: These policies ensure that the items around your property can’t block your solar panel’s access to the sun for energy production.
Net Metering: In Kansas, residents can exchange extra power back to the grid for energy credits.
KentuckyThe “Bluegrass State,” as it’s commonly known, has the popular Kentucky Derby, unique cuisine, and gorgeous natural attractions for residents and tourists to enjoy. Below are the significant solar incentives the state provides.
Solar Easement Policies: If you live in Kentucky, your state can help you prevent objects around your property from interrupting your panel’s energy production with solar easement policies.
PACE Financing: You can finance up-front fees from a solar panel installation and pay back the cost over time with a voluntary assessment.
Net Metering: In Kentucky, you can receive credits for the excess solar energy you send to the grid.
LouisianaLouisiana is a state full of delicious Cajun cuisine, vibrant music, and rich traditions (we’re looking at you, Mardi Gras). The Bayou State is also a solar-friendly place to live in, thanks to these incentives.
Home Energy Loan Program (HELP): This incentive involves a five-year, low-interest loan distribution from the Louisiana Department of Natural Resources to families who want solar power on their property.
Property Tax Exemption: In Louisiana, you don’t have to worry about your property taxes increasing after installing solar panels.
Net Metering: You can sell excess energy to your utility company for credits.
MaineThere’s a lot to admire about this coastal city. It gives us delicious lobster and breathtaking views of lakes and forests. Sitting in the northernmost part of the East Coast, one may not assume Maine is ideal for solar power. But don’t count it out! The Pine Tree State is a strong proponent of sustainable power solutions thanks to the many incentives it has put in place to encourage solar installations.
PACE Loans: You can finance your new solar power system with the Property Assessed Clean Energy Loan (PACE), which involves a tax assessment to help pay solar power loans. Your clean energy loan can amount to over $15,000 for up to 15 years.
Property Tax Exemption: With this exemption, you don’t have to worry about your property taxes rising after installing solar panels.
Community Solar: Residents here can opt into large, shared solar installations that pull energy from a community solar farm. This is great for renters in the city who want to invest in high-performance solar solutions.
Net Metering: Yes, in Maine you can utilize a net metering program that allows residents to sell the additional power produced from their systems.
MarylandTucked along the Eastern coast, Maryland is both where the Chesapeake Bay sits and where our national anthem was born. The state is known for its blue crabs, eclectic terrain, and impressive professional sports teams. In recent years, Maryland has become a strong advocate for solar initiatives thanks to their range of incentives for clean energy.
Solar Renewable Energy Credits (SREC): Maryland will give you a SREC for each megawatt-hour (MWh) of solar energy you produce at home that you can sell to the SREC market.
Sales Tax Exemption: A great benefit to going solar in Maryland is that your solar power system purchase is tax free.
Property Tax Exemption: With Maine’s Property Tax Exemption for Solar and Wind Energy Systems, you don’t have to worry about your property taxes increasing from the added value a solar install adds to your home.
Residential Clean Energy Rebate Program (R-CERP): This rebate program provides you with $1000 just for purchasing a solar power system.
Net Metering: In Maryland, you can exchange your excess solar energy from your panels for solar credits.
MassachusettsMassachusetts, otherwise known as the Bay State, has rich history, prestigious universities, and three professional sports teams. The state also has plenty of sustainable solutions for residents to enjoy.
Residential Renewable Energy Income Tax Credit: This is a renewable energy credit of 15% homeowners can apply to income taxes for their solar power systems. The maximum credit limit is $1,000.
Solar Massachusetts Renewable Target (SMART): The government in Massachusetts is encouraging the expansion of solar energy with the SMART program. We must say, this sounds like a smart idea. SMART involves a fixed-rate payment based on the amount of (kWh) of energy a system can produce.
Sales Tax Exemption: In Massachusetts, you don’t have to worry about paying a sales tax on your solar power system.
Property Tax Exemption: The added value solar panels bring to your home will not increase your property taxes with this exemption.
Net Metering: With all the other incentives available to homeowners in Massachusetts, it’s no surprise net metering is just another to add to the list. Homeowners in the New England territory can receive credits for excess solar from their grid.
MichiganFrom the automotive industry to the birth of Motown, Michigan continues to play a pivotal role in shaping America. The Great Lakes state also provides several solar incentives for its homeowners.
Michigan Saves Home Energy Loan Program: This loan program provides homeowners with more opportunity to access solar energy. The program offers low upfront payments and can provide up to $30,000 in financing.
Property Tax Exemption: Yes, your property is free from an increase in property taxes when you install solar panels.
Distributed Generation Program: Michigan is pivoting away from net metering. Instead, they are using their Distributed Generation Program, which credits homeowners with solar panels for the excess energy they send to the grid.
MinnesotaSitting up along the northern coast of the United States, Minnesota borders Canada and is known for offering residents and tourists countless adventure opportunities in any of its 10,000 lakes. The state became a shopper’s paradise when it opened Target in 1962, and again with The Mall of America in 1992. Currently, Minnesota has a range of sustainable solutions for Minnesotans seeking clean energy and a reduced carbon footprint.
Sales Tax Exemption: Families in Minnesota don’t have to worry about paying a sales tax on the solar panel system they purchase.
Property Tax Exemption: Minnesota’s Wind and Solar-Electric (PV) Systems Exemption prevents your property taxes from increasing on behalf of your solar installation.
Solar Sense: Minnesota Power’s Solar Sense program offers a rebate to cover the upfront fee of installing solar power systems. You must submit an application to qualify.
Net Metering: In Minnesota, you can send energy back to the grid in exchange for solar credits.
MississippiMississippi may be the Catfish Capital of the world, but it’s also a state that’s taken steps forward by embracing the benefits of sustainable power solutions. To make this possible, they have the following incentives in place:
Net Metering: Mississippi allows homeowners to exchange excess solar energy from their panels for solar credits.
MissouriMissouri has long been competitive in professional sports and the debate for the best barbecue. It’s where you’ll find the Katy Trail and the start of Route 66, but the Show Me State also has terrific solar incentives. These are great for encouraging and helping residents transition their home to one that runs on clean, renewable energy.
Columbia Water & Light Solar Rebate: Customers who use this company and have a solar power system with 0.25 kW – 100 kW can get payments anywhere from $375 to $625 per kW of energy produced.
Kansas City Power and Light Solar Rebate/Energy: Customers utilizing net metering are eligible to receive rebates on a per-watt basis.
Empire District Electric Solar Rebate): Homeowners using Empire District Electric Solar can receive a rebate with a maximum of $0.25/W.
Amaren Missouri’s Solar Rebate: This rebate gives customers the opportunity to receive $0.25/watt upfront when they install solar panels. If you have an 8 kilowatt (kW) system, this adds up to $2,000 in savings. Homeowners with systems exceeding 25 kW are not eligible.
Alternative Energy Revolving Loan Program: A low-cost, low-interest loan to help homeowners switch to solar.
Property Tax Exemption: In Missouri, you’re exempt from property tax increases resulting from the value added to your home after installing a solar power system.
Net Metering: Missouri lets you send energy back to the grid in exchange for solar credits.
MontanaMontana is a rocky mountain state with some of the best scenic landscapes. It’s also the country’s fourth-largest state, and likely has more wildlife than people, seeing as how it’s ranked 44th in state population. Tourists will appreciate Montana’s range of national parks offering scenery and adventure. When it comes to solar energy, residents looking to make the switch will be happy to know the Treasure State is generous with incentives.
Property Tax Exemption: Avoid paying for the increase in property taxes that stem from installing solar panels with Montana’s Renewable Energy Systems Exemption. This ensures up to $20,000 of the added value from your solar power system is 100% exempt from property taxes for 10 years.
Alternative Energy Revolving Loan Program: Access low-interest loans to help ease your switch to clean energy at home.
Net Metering: You can use this incentive program to sell surplus power to electrical utility companies.
NebraskaSitting in the center of the Midwest, Nebraska has vast farmland perfect for corn and beef production. The Cornhusker state has given us one of the world’s most notable businessmen (ahem, Warren Buffett), plenty of trees, beautiful prairies, and the Reuben sandwich. But where does the state stand with solar incentives?
Solar Easement Policies: Homeowners can use these policies to prevent objects around their property from interfering with solar panel energy production.
PACE Financing: The property assessed clean energy (PACE) program lets homeowners finance up-front fees from a solar panel installation and pay back the cost over time with a voluntary assessment.
Dollar and Energy Saving Loans: A low-interest loan program for homeowners installing solar panels. The loans have simple interest rates of 5%, 3%, or less.
Lincoln Electric System Capacity Payment: A one-time capacity payment to existing customers installing a solar panel system below 25kW in size.
Net Metering: In Nebraska, you can send energy back to the grid in exchange for credit on your utility bill.
NevadaNevada, the country’s 36th state, has one of the country’s most popular tourist destinations–Las Vegas, a city known for casinos, luxurious hotels, fine dining, and nightlife. However, there is more to the “Silver State” than meets the eye. Home to a reliable supply of sunshine, Nevada is an excellent place to install solar panels.
Solar Access Rights: This protects homeowners from unreasonable withholding or restrictions on their solar panels from common residential organizations, such as homeowner’s associations.
NV Energy Residential Energy Storage Incentives: If you live in Nevada, you can use this incentive to save money when you install a new battery to your solar power system.
Net Metering: All Nevada residents can enjoy the benefits of net metering, which lets solar homeowners sell surplus energy for other customers to use in exchange for credits.
New Hampshire sits in the New England region, with plenty of open spaces and outdoor activities for locals and tourists. The Granite State also has many solar incentives and rebates available for its residents.
Residential Renewable Electrical Generation Rebate Program: Provides rebates to homeowners per kilowatt, at $.20 per watt of power with a maximum of $1,000.
New Hampshire Low-Income Energy Assistance Program (LIHEAP): Low-income households can join this financing program to help cover the cost of renewable energy.
Property Tax Exemption: With this exemption, you don’t have to worry about paying property taxes for your solar panel installation.
Solar Easement Policies: Through the Solar Skyspace Easement, property owners can prevent objects around their property from interfering with a solar panel’s energy production.
Net Metering: In New Hampshire, you can sell surplus energy for credit on your energy bill.
New JerseyGoing solar in New Jersey is a fantastic choice! The Garden State sits within the top states in the country for solar energy. It’s also one of the few places in the United States able to produce more than one gigawatt of solar capacity. So while many of us associate New Jersey with Bruce Springsteen, fun beaches, and resort cities, it might be time to realize the state is also a leader in pushing renewable energy initiatives.
Successor Solar Incentive (SuSi) Program: For each megawatt hour of electricity your solar panels generate, your household will be given an SREC-II you can sell. Your SREC-II’s value depends on the type of solar system you install on your property.
Sales Tax Exemption: The sales tax accounts for a 100% tax exemption from any sales tax on your solar power system.
Property Tax Exemption: With the property tax exemption, you avoid the sudden spike in property taxes that stems from the added value solar panels bring to your home.
Net Metering: Yes, New Jersey offers net metering to homeowners in the state. This means you are credited on your energy bill for surplus energy sent to the grid.
On average, New Mexico is sunny 293 days per year. This Southwestern territory has beautiful natural attractions, from mountains and lakes to caverns and sand dunes, the scenery here is eclectic and perfect for capturing. Over the years, New Mexico has grown into one of the nation’s leaders in clean energy. The incentives available in this state prove New Mexico’s dedication to renewable energy sources.
Sustainable Building Tax Credit: This incentive program can give you $6.50 per square foot of your solar roof for owning sustainable solutions. To enjoy this incentive, the US Green Building Council will need to certify your property.
Solar State Tax Credit: New Mexico’s solar tax credit lowers your state taxes at a maximum of $6,000. Or you can use this credit to deduct 10% off your total solar panel fees.
Property Tax Exemption: Solar panels will increase the value of a home, but this incentive exempts you from a spike in property taxes.
Net Metering: In New Mexico, you can send surplus energy to the grid in exchange for credits.
New YorkNew York is home to the Big Apple, Niagara Falls, iconic bridges, and plenty of history. New York is also among the top ten states for solar energy, so it’s no surprise that homeowners belonging to the Empire State are free to access a great range of credits and tax exemptions when they switch to solar.
Solar Energy System Equipment Credit: You get $5,000 or 25% tax credit on your solar panel cost. This includes the cost of equipment and installation. You can use this incentive even if you have a PPA or solar lease.
Property Tax Exemption: New York currently offers a 15-year tax exemption from the added value solar panels bring to your home.
NY-Sun Megawatt Block Incentive: Provides payment-per-watt rebate available for commercial and residential solar power systems. The amount of money you receive through this subsidy depends on the amount of solar installed. In some cases, you can receive up to $1,000 for every kilowatt (kw) of solar power you install.
NY-Sun Initiative: The NY-Sun program wants to make it affordable for homeowners in New York to switch to solar. They do this by working directly with solar contractors and developers to lower the cost for residents to switch to solar.
Sales Tax Exemption: You don’t have to pay a sales tax on the solar power system in New York. The sales tax here equates to 4%.
Solar Easement Policies: Prevent objects around your property from interfering with your solar panel’s energy production by utilizing New York’s solar easement policies.
Net Metering: New York does currently support net metering. However, the state offers the Value of Distributed Energy Resources (VDER), or the Value Stack, for homeowners looking to compensate for excess energy.
North CarolinaThe bragging rights are plentiful in North Carolina. For one thing, you can say you live in the state that jump-started Michael Jordan’s basketball career. There are coastal beaches perfect for weekend getaways. National parks and mountain ranges, like the Blue Ridge Mountains and Great Smoky Mountains National Park, are plentiful and offer attractive scenery. Thanks to the state’s exceptional solar programs and incentives, renewable energy is becoming more accessible for many homeowners seeking sustainable energy solutions.
Building Permit Rebates: This incentive applies to residents in Asheville. It provides you with a rebate on your building permit for setting up commercial and residential solar products.
Property Tax Exemption: North Carolina’s property tax exemption frees your property from increased taxation after installing solar panels at home.
Local Solar Rebates: Customers of Duke Energy get to enjoy a rebate program that can earn you money. Currently, a 8-kilowatt system provides a rebate of $3,200. While Duke Energy can run out of financing for the rebate program, there is a waitlist homeowners can join.
Revolving Loan Options: Flexible financing options for solar panel systems are possible with the state’s revolving loan options. The interest rate on these loans can’t exceed 8% and can last no longer than 20 years.
Net Metering: North Carolina residents get the privilege of selling any extra power produced from their systems.
North DakotaNorth Dakota, our 39th state, sits up against the border of Canada and has plenty of beautiful land to marvel at and view. That is, if you can see it under the layers of snow. Apart from being a leading agricultural producer, North Dakota’s solar incentives make it a great state to install solar panels.
Property Tax Exemption: With this exemption, you don’t have to worry about your taxes increasing from the added value installing solar panels brings to your home.
Solar Easement Policies: These policies help prevent objects around your property from interfering with your solar panel’s energy production.
Net Metering: In North Dakota, you can send excess solar power back to your grid in exchange for credits.
OhioHome to the Buckeyes, Neil Armstrong, and eight U.S. presidents, Ohio is a renowned state that’s helped move the country forward in several ways. Following this sentiment, Ohio has taken steps to adopt utilizing renewable energy. As a result, residents have access to a variety of excellent incentives.
Solar Renewable Energy Credits (SRECs): Ohio has pledged to produce 12.5% of its power from renewable resources by 2027. To meet this initiative, Ohio relies on SRECs to allow people to sell electricity for cash. Therefore, for each megawatt hour of electricity your solar panels generate, your household will be given an SREC that you can sell.
Property Tax Exemption: Ohioans are exempt from their taxes increasing upon the added value installing solar panels brings to their home.
Interest Rate Reductions: The state offers Ohio homeowners with conservation programs that provide access to affordable financing for solar energy products. This includes the Energy Conservation for Ohioans Program (ECO-Link). Applying for this program can help you receive up to a 3% reduction in the interest rate of your bank loans.
Net Metering: If you live in Ohio, you can earn credit toward your utility bill for any excess energy sent back to the grid.
Oklahoma is a large state known for sitting in tornado alley, indigenous history, impressive college sport’s teams, and agriculture. The Sooner State is also in the Great Plains, with over 200 sunny days a year for residents and visitors to use to their advantage. All this sunshine also makes it an easy decision to use solar panels for energy at home.
Net Metering: In Oklahoma, you can exchange excess solar energy for credits.
OregonOregon is known for giving us the world’s most famous athletic apparel company (ahem, Nike). It’s also home to the famous Crater Lake National Park. Aside from being a scenic state perfect for outdoor enthusiasts, Oregon also provides various solar incentives.
Property Tax Exemption: Through the Renewable Energy Systems Exemption, Oregon residents are exempt from their taxes increasing upon the added value installing solar panels brings to their homes.
Oregon Solar + Storage Rebate Program: Homeowners installing solar systems can receive rebates up to $5,000 from the Oregon Depart of Energy’s (ODOE) program.
Local Utility Rebates: Homeowners in Oregon get a generous rebate if their utilities are from Eugene Water and Electric Board or Salem Electric. Currently, the rebates are:
- Eugene Water and Electric Board: This utility company will pay $0.40/W to homeowners with solar panels. The rebates caps at $2,500.
- Salem Electric: Enjoy $300 per kW. The rebate caps at $1,500.
Net Metering: If your address is in Oregon, you can enjoy net metering which allows you to earn energy credits for unused energy produced by your solar panels.
PennsylvaniaPennsylvania, one of the largest industrial hubs of the United States, has quite a few attributes working in its favor. It’s the “Snack Food Capital of the World” and home to two professional football teams, one of which has won the Super Bowl six times. Similar to other states, Pennsylvania has extensive historical narratives rooted deep within its soil. Over time, the state has become famous for producing immense amounts of energy from coal, oil, and solar.
Solar Renewable Energy Certificates (SRECs): Living in Pennsylvania means you’re eligible for solar renewable energy certificates. This gives you the freedom to sell your solar renewable energy certificates to utility companies.
Solar Easement Policies: Use these policies to prevent objects around your property from interfering with your solar panel’s energy production.
Net Metering: Yes, Pennsylvania has net metering, which allows you to sell excess energy generated for credit on your utility bill.
Rhode IslandThe state sitting by the seaside is working hard to promote renewable initiatives by providing residents with a wide range of alluring incentives.
Renewable Energy Fund (REF) Grant: This incentive provides homeowners in Rhode Island with up to $7,000 to finance a residential solar system. You must apply for this incentive to take advantage of the benefits.
Renewable Energy Growth Program (REG): Homeowners ineligible for the Renewable Energy Fund can use the REG program to earn money for every kWh or energy their home’s solar power system creates. This includes a credit rate of 28.75 cents for every kilowatt per hour they sell to power systems in the first 15 years of owning their system.
Solar Easement Policies: Prevent objects around your property from interfering with your solar panel’s energy production by utilizing Rhode Island’s easement policies.
Property Tax Exemption: Installing solar panels on your home won’t lead to an increase in your property taxes with this exemption.
Sales Tax Exemption: You don’t have to pay a sales tax for your solar power system thanks to the Renewable Energy Sales Tax Exemption.
Net Metering: Residents of Rhode Island can participate in net metering, a program that helps ensure residents of the city can sell the additional power produced from their solar panels.
South CarolinaSouth Carolina is full of southern charm. From the elegant French Quarter in Charleston to the tranquil tropical hideaway in Myrtle Beach, the state can be an oasis for all who visit or live there. The Palmetto State’s beautiful weather also makes it an excellent contender for solar panels.
South Carolina Solar Energy Tax Credit: South Carolina residents can claim up to 25% of their solar install expenses as tax credits. This credit can roll over for 10 years if you don’t pay enough in taxes for the incentive’s full value.
Utility Incentives: Santee Cooper currently offers a rebate to customers switching to solar. The rebate provides $1.05/W of solar energy a homeowner installs. The maximum for this rebate is $6,300.
Net Metering: Citizens in South Carolina can sell unused solar power for credits toward their energy bill.
South DakotaWell-known for Mount Rushmore and ranked as the 16th largest state in the country, South Dakota is historically and culturally rich. Natural beauty is found in the Badlands or through lakes flowing through the Coyote State. South Dakota supports renewable energy with these solar incentives for residents to enjoy.
Property Tax Exemption: Installing a solar power system on your home is likely to increase your property’s value. This exemption prevents your property taxes from also increasing.
Net Metering: South Dakota does not require utilities to offer net metering to homeowners. However, some local companies may provide this incentive.
TennesseeSome call Tennessee the Home of the Blues or the Birthplace of Country Music. Others associate it with Graceland and Elvis Presley. Culinary experts will note the city for its barbeque and chicken. Outdoor enthusiasts will appreciate the state’s rolling hills. But residents seeking solar energy solutions will appreciate the state’s incentives making the transition to clean energy more attractive.
Solar Easement Programs: Prevent objects around your property from interfering or obstructing your solar panel’s energy production when you utilize Tennessee’s solar easement policies.
Property Tax Exemptions: The state’s Green Property Tax Assessment limits the level at which your property taxes increase after installing a solar power system. Through this exemption, you will not be taxed over 12.5% for your solar system.
Net Metering: Tennessee is a state that doesn’t require utilities to offer net metering to homeowners. However, the Tennessee Valley Authority (TVA) may provide dual-metering to homeowners in the Green Power Providers program. Other homeowners may be able to use the dual-metering plan in the Dispersed Power Production Program.
TexasTexas, one of the nation’s largest states, known for coining the term “y’all” and gifting the rest of the world Dr. Pepper, rodeos, and delicious barbeque, is also one of the country’s sunniest places. This ranking makes it an excellent place to own solar power systems. There are several solar incentives available for homeowners in the Lone State State.
Solar Rebates: Texas utility companies currently offer solar rebates to help you earn money from your system. The companies include Guadalupe Valley Electric Cooperative, the City of Sunset Valley, CPS Energy, and Austin Energy.
- Austin Energy offers rebates for as much as $2,500, as well as Austin Energy’s Value of Solar Tariff. This gives $0.097 for each kilowatt-hour, kWh, your panels produce.
- CPS Energy’s rebate will pay you up to $2,500 for installing a solar power system. You can also receive an additional $500 if you locally source your solar panels.
Solar Rights Laws: In Texas, private property owner’s associations can’t interfere with the solar panels on your home or prevent you from installing them.
State Property Tax Exemption: Installing a solar system at home will increase the value of your home. However, Texas’s exemption will prevent your property taxes from rising.
Net Metering: While Texas doesn’t have a state-wide net metering system, there are utility companies within the state offering compensation for energy production. These include Green Mountain Energy, El Paso Electric, CPS Energy, and the City of Brenham.
UtahUtah is a rugged, mountainous haven that many flock to for an outdoor excursion. From canyons to ski slopes, Utah is geographically diverse and has a little something for everyone. If you live in Utah, you’ll be happy to know the Beehive State has incentives for solar energy.
Renewable Energy Systems Tax Credit: Utah’s statewide tax credit currently sits at 25% of an eligible system’s cost and has a maximum of $400. The credit is set to expire after December 31, 2023.
Solar Easement and Rights: Utah’s Solar Easement and Rights laws help ensure that your panels have access to proper sunlight and are free from obstruction, such as from a neighbor’s landscaping or property development interference.
Net Metering: Utah doesn’t currently mandate net metering at utilities throughout the state. However, some homeowners can still earn credits for excess energy at some utility companies, like Rocky Mountain Power.
VermontVermont has gorgeous scenery enhanced by forests, mountain terrains, and slopes. Many appreciate the state for giving us delicious maple syrup and a famous ice cream company. Vermont is also among the top states in the country to support sustainable energy solutions.
Property Tax Exemption: The Uniform Capacity Tax and Exemption for Solar frees your property from additional taxation resulting from the increased value solar panels bring to your home.
Sales Tax Exemption: Your solar power system is free from a sales tax thanks to this state-wide exemption known as the Renewable Energy Systems Sales Tax Exemption.
Net Metering: Homeowners in Vermont can receive energy credits when they exchange excess solar energy to the grid.
VirginiaVirginia, the land the English settlers first arrived in, has grown into one of the country’s most historically vast epicenters. This extensive history has earned Virginia the nickname the “Mother of States.” Traditionally, Virginia was known for its tobacco production, but over the years, the state has become more aggressive in it’s efforts to produce solar energy. This is evident with the state’s incentives, making it more convenient and tempting for residents to go solar.
Solar Renewable Energy Credits: Homeowners can earn one SREC for each megawatt-hour (MWh) or solar energy their panel generates. In turn, you can sell these credits to utilities.
Property Tax Exemption: Any increase on your property’s value due to solar products is free from tax obligations in certain areas through this residential property tax exemption.
Net Metering: In Virginia, you get credits or cash in exchange for surplus solar energy to utility companies.
WashingtonWashington is a nature lover’s paradise. The Evergreen State is where you’ll find great trees, extensive trails, parks, and gorgeous waterfalls. It’s home to some of the country’s biggest corporations, such as Starbucks, Amazon, and Microsoft. The state also produces a great deal of the country’s apples. Currently, the state has various incentives to help residents transition to clean, renewable energy.
Solar Easement Policies: Washington’s Solar Easement Policies ensure solar panels belonging to residents can access optimal sunlight.
Sales Tax Exemption: As of July 1, 2019, Washington provides residents with a 100% sales tax exemption for solar power systems that generate up to 100 kilowatts (kW) of electricity. This exemption also applies to labor and solar power equipment.
Net Metering: Washington offers net metering to its residents, allowing Washingtonians to distribute surplus solar power and receive credits on their power bills.
West VirginiaTucked in the Appalachian region, West Virginia is a smaller state with rugged appeal and plenty of natural scenic beauty. The state has incentives for homeowners to use when going solar.
Solar Rights Laws: In West Virginia, a homeowner’s association can’t prevent you from installing solar panels at home. Some associations may have restrictions on the size of your system and the placement of arrays.
Net Metering: West Virginia has a net metering system that allows homes producing surplus power to send it back to the grid in exchange for cash or tax credits.
WisconsinRaise your hand if hearing “Wisconsin” makes you think of cheese, freezing winters, or the Green Bay Packers. The Badger State, largely consisting of beautiful farmland, has also adopted incentives to attract its residents to solar energy, making it a great place to switch to solar.
Focus on Energy Rebate: Wisconsinites can use this renewable reward program to access rebates that average up to $500. The good thing about this rebate is you’re eligible for the program no matter the size of your solar power system or the project’s total cost.
Property Tax Exemption: Installing a solar system will increase the value of your home. However, Wisconsin’s property tax exemption keeps the increase free from state taxation.
Sales Tax Exemption: You won’t have to pay sales tax on solar equipment.
Solar Access Rights: “America’s Dairyland” wants to ensure you get the most value from your new solar system. Take advantage of the state’s solar access rights to ensure your panels have access to sunlight where you live.
Net Metering: If you live in Wisconsin, you can send extra power from your solar panels to the grid for energy credits.
WyomingLandlocked and dry, Wyoming is one of the most ideal states for filming an epic Western movie. It has many national parks and a hot spring that residents and tourists can enjoy. The Cowboy State also offers homeowners in the area solar incentives to make switching to renewable energy more enticing.
Net Metering: Wyoming has net metering, so you can distribute surplus solar power to the grid for energy credits.
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