State Incentives for Going Solar [Full Guide]
Updated August 5, 2021
States across the country receive varying amounts of sunshine; Arizonians can soak up rays most days while Washingtonians may forget what the sun looks like at times. Similarly, financial credits and incentives for consumers to install solar panels vary by state.
Alongside the federal solar tax incentive (ITC), these statewide incentives can make a huge financial difference for those in the market for solar, so it is important for you to know what’s available in your area.
Types of State Solar Incentives
First, let's differentiate between the types of tax incentives commonly offered by states and utility companies so that you can know what to expect from the incentive/s you qualify for.
- Tax Credit: This is a tax allowance that the federal or state government allows taxpayers to subtract from the amount of tax they owe in a given year.
- Tax Rebate: This is a payment that a government makes following a tax period.
- Tax Exemption: This is the right to exclude some income from taxation by federal or state governments.
What is Net Metering?
Along with specific incentives, net metering policies vary state by state and also influence your total return on investment.
Net metering is a metering and billing agreement between utilities and their customers. It facilitates the connection of solar systems to the power grid.
Net metering programs can help solar owners by allowing them to have a steady source of energy from the grid during the times when their panels are not producing electricity.
An electric meter records the energy delivered both to and from the electric grid. Net metering customers are charged for the "net" power that they consume, which represents the difference between energy delivered to the grid and energy delivered from the grid.
If a solar system produces more energy than the household consumes, the system's owners can receive a credit for the excess energy contributed to the grid.
Favorable net metering policies typically allow solar users’ excess energy credits to roll over to a new billing cycle.
For more information on these programs, check out Project Solar’s article on net metering.
To see a more in-depth evaluation of your state's net metering programs, take a look at Solar Review’s Net Metering Guide.
Don’t Forget the Federal Incentive
As you research your states’ incentives for solar, remember to factor in the federal solar tax credit.
The Solar Investment Tax Credit (ITC) has played a huge role in motivating consumers to switch to solar. Through the ITC, the U.S. federal government is currently offering a 26% tax credit on residential and commercial properties that install solar systems this year or next.
With a 26% tax credit, your federal income taxes will be reduced by 26% of what you pay for your system. Dollar for dollar, that 26% can come back to you.
Since being enacted in 2006, the ITC has helped the solar industry grow by more than 10,000%. This rapid growth has contributed to the market’s increasing affordability and technological advancements.
To put the ITC’s value into perspective, the average Project Solar customer saves $3,500 with the credit.
This tempting 26% also draws consumers in because it isn’t here to stay. In 2023, it is scheduled to drop to 22%, and in 2024, it will fall to 10% for commercial properties and a sad 0% for residential projects.
This deadline naturally creates some urgency for consumers and makes right now the best and most profitable time for you to move forward with your solar project.
State Incentives
The great news is, no matter where you call home in the United States, you can be eligible for that 26% credit if you are a taxpayer. Even in a state with skimpier incentives, the federal tax credit can seriously help alleviate the cost of a solar installation.
However, it is still important to look at the solar incentives your state offers so that 1) you don’t miss out on anything, and 2) you can make more informed decisions when sizing your system and determining whether solar is a good financial option for you in the first place.
For each of the states on this list, I have provided information about statewide incentives, some utility-based incentives, and the basics of the net metering program/s in the state.
Admittedly, this is not a comprehensive list of all the incentives offered in the United States (especially when it comes to the utility companies), so be sure to research your own utility company’s solar incentives whether they are listed here or not.
Below, I have listed all the states in alphabetical order with their incentives. You can click on your state’s name in the menu below to jump ahead, or you can just scroll through and browse.
State-by-state Solar Incentive Guide
Alabama - Alaska - Arizona - Arkansas - California - Colorado - Connecticut - Delaware - Florida - Georgia - Hawaii - Idaho - Illinois - Indiana - Iowa - Kansas - Kentucky - Louisiana - Maine - Maryland - Massachusetts - Michigan - Minnesota - Mississippi - Missouri - Montana - Nebraska - Nevada - New Hampshire - New Jersey - New Mexico - New York - North Carolina - North Dakota - Ohio - Oklahoma - Oregon - Pennsylvania - Rhode Island - South Carolina - South Dakota - Tennessee - Texas - Utah - Vermont - Virginia - Washington - West Virginia - Wisconsin - Wyoming
Alabama
The “Heart of Dixie” unfortunately doesn’t have many favorable programs and incentives for solar owners. Here's what they currently offer:
State Incentives
- Even though the installation of a solar system will increase your home’s value, your property taxes will not increase for a period of time (10 or 20 years depending on your local jurisdiction).
- People interested in claiming the exemption must apply locally and go through the review process outlined by the Alabama Department of Revenue.
Net Metering
- The state allows Alabama Power to credit solar owners with tiny portions of the value their solar energy provides. (Alabama Power also charges you several dollars every month for each kilowatt of installed solar you have on your roof.)
Alaska
A state dubbed "The Land of the Midnight Sun" certainly sounds like an interesting candidate for solar energy, but since so many Alaskans live in remote regions, living off the grid is actually a necessity for some. Here are the few solar incentives available for Alaskans who have the 4th highest electricity rates in the country. (Project Solar does not currently install in Alaska.)
State Incentives
- The property tax exemption allows homeowners to remove the added value of a solar panel system from the valuation of their home for tax purposes.
Net Metering
- Alaska credits customers monthly at the non-firm power rate, currently $0.05843/kWh (less than 25% of the current average cost per kWh).
Arizona
For many, the word "Arizona" is synonymous with "sunburn." The Grand Canyon state has some grand sunshine and several solid state solar incentives that will help ratchet down what you’ll need to pay for solar.
State Incentives
- This credit is equal to 25% of your solar system's cost, but the maximum credit in a taxable year cannot exceed $1,000.
- If the credit exceeds what the taxpayer owes in a year, then the taxpayer may carry the credit forward for up to five years.
- You will not need to pay any sales tax on the purchase of your system.
- This property tax exemption allows homeowners to remove the added value of a solar panel system from the valuation of their home for tax purposes.
Utility Company Incentives
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The state's net metering has been largely phased out due to the Arizona Corporation Commission. Now, utilities usually offer time-of-use plans.
- This means that electricity is more expensive during “peak” hours (rates typically double or triple during peak hours).
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Arizona Public Service (APS)
- Customers usually pay for the utility’s “Saver Choice” plan which incurs a grid access charge based on the amount of solar energy generated.
- The current charge is $0.93 per kW (DC), meaning you are charged for sending solar back to the power grid.
- For a 5 kW system, that charge would equal $4.65/month or $55.80/year.
- Customers can choose between 3 different time-of-use net metering plans
- APS Solar Partner Program offers participants a $30 monthly bill credit for 20 years so that APS can study using advanced technology to measure the impact of solar on the grid and learn how to best integrate rooftop solar production. (unused credit can roll over to other months) similar to a lease
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Salt River Project (SRP) offers energy storage rebate.
- Home battery installers who agree to participate in SRP's battery research study can receive $300/kWh of battery storage (up to $3,600).
- SRP offers a $250 rebate with the purchase and installation of one of their approved Demand Management Systems when installed by one of SRP's Preferred Solar Installers.
- On- and off-peak hours and per-kWh charge is based on the SRP Time-of-Use Price Plan. Maximize savings by shifting energy usage to lower-priced off-peak hours. SRP provides a credit for excess generation delivered back to the electric grid.
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Tucson Electric Power Company (TEP)
- TEP doesn't offer any financial incentives because they don't see them as necessary with current low solar prices. They reason that this helps keep the utility's rates down.
- The Arizona Corporation Commission (ACC) established the Resource Comparison Proxy (RCP) in September 2018 to compensate residential and small commercial customers for excess power produced by private rooftop solar systems. The current RCP of $0.0868 per kWh, effective since October 1, 2019, will continue through September 30, 2021.
Arkansas
Residents of the Natural State can definitely benefit by going green and switching to solar energy. There are no state tax credits in Arkansas, but the state has net metering, and some utility companies offer rebates for going solar.
State Incentives
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Arkansas does not have a state tax credit.
- The state has not developed a renewable portfolio standard (RPS).
Utility Company Incentives
- Entergy Arkansas offers Renewable Energy Credits (RECs)
Net metering
- Systems can be as large as 25 kW (about 80 panels).
- The entire price of any kWh you export to the grid becomes a credit on the next month’s bill (you save the full value of each kWh of energy produced).
California
The Golden State is commonly recognized as the best state in the United States for solar. The state has earned its title with its bright, consistent rays as well as its plentitude of state incentives.
State Incentives
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This is a rebate for buying and installing a solar battery along with a rooftop system (varies by utility and storage capacity).
- PG&E, SCE, SoCalGas, and SDG&E customers may qualify.
- This rebate can be as high as $200 per kWh of battery storage.
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The property tax exemption allows homeowners to remove the added value of a solar panel system from the valuation of their home for tax purposes until the end of 2024.
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Qualified low-income households can receive a cash incentive for every kilowatt of power installed (up to $3,000/kW).
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Customers must have PG&E, SCE, or SDG&E as their utility company, and the household must be at 80% of the Area Median Income (AMI) or less based on the most recent available income tax return.
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San Francisco’s GoSolarSF program offers residents cash incentives ranging from $100-$2,000 per kW (up to 4 kW). This incentive can vary based on a system’s size, location, and applicant income.
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SMUD solar rebate program offers a solar incentive of $300 to Sacramento residents.
Net Metering
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In California, a new version of statewide net metering is being decided upon. Currently, customers receive kWh credits for excess generation, but they're required to use a time-of-use (TOU) billing rate plan.
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The new plan could possibly decrease the credit given to solar owners and create a “buy-all, sell-all” scenario where new installations would feed directly into the grid and customers would be paid a fixed sub-retail price for their energy usage.
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With PG&E, SCE, SDG&E, and other utility companies’ net metering programs, you can earn credits on your bill for the excess solar energy you produce.
Colorado
With a bright golden sun on its flag, it doesn’t come as a surprise that Colorado is a good state for solar. Its abundant sunshine and state incentives make solar panels a doable and appealing option.
State Incentives
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Sales and Use Tax Exemption for Renewable Energy Equipment
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You will not need to pay sales tax on the purchase of your system.
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Property Tax Exemption for Residential Renewable Energy Equipment
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The property tax exemption allows homeowners to remove the added value of a solar panel system from the valuation of their home for tax purposes.
Utility Company Incentives
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EnergySmart Colorado
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The company offers rebates ranging from $400 to $3,000 for installations in Eagle Valley, Roaring Fork Valley, and Summit County.
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Holy Cross Energy
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The company has a per-kilowatt rebate. Solar owners can receive $750 for a system’s first 6 kW.
Net Metering
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A customer's monthly net excess generation (NEG) is applied as a kilowatt-hour credit to the customer's next bill. Each kWh credit of NEG off-sets 1 kWh of electricity consumption in a future month.
Connecticut
State Incentives
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The property tax exemption allows homeowners to remove the added value of a solar panel system from the valuation of their home for tax purposes.
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Sales and Use Tax Exemption for Solar and Geothermal Systems
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You won’t need to pay sales tax on the purchase of your solar system.
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Connecticut Green Bank Residential Solar Investment Program (RSIP)
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For purchased systems, upfront cost is reduced by $0.426 per installed watts based on system size (max. 10 kW).
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For leased systems, there is compensation of $0.30/kWh produced by the solar power system (max. 20 kW).
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Qualified low-income households can access solar energy through a PPA at a special rate.
Net Metering
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For its CT customers, the company banks excess energy sent to the grid and applies the extra kWh credits to be used in following months.
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In March, Eversource will zero out your kWh balance and send you a monetary credit on your bill. The pricing you'll receive for this credit will be based on the "Rider N" rate, which is lower than retail electricity rates.
- New net metering programs/rates for the state are currently being debated.
Delaware
The First State is not necessarily the first when it comes to solar, but there are some utility deals that could make the switch worth it.
State Incentives
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There are no state tax credits or rebates for going solar.
Utility Company Incentives
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Delmarva Power and Light
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The utility offers Delaware solar customers a cash rebate. The utility pays $0.70/W of solar-generating capacity installed (up to 50 kW with a maximum rebate of $6,000).
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Delaware Electric Cooperative
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The utility offers solar customers $0.50/W of solar power installed (up to 5 kW) and $0.20/W for any additional solar capacity.
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Delaware Municipal Electrical Corporation (DEMEC)
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The DEMEC's Green Energy Program offers qualifying customers a cash rebate for a portion of their solar installation costs (value depends on location).
Net Metering
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Excess energy generation is credited to the customer's next bill at the retail rate, and those credits can roll over to future periods. You can sell those credits back at the retail rate.
Florida
The Sunshine State’s tax exemptions help carry the cost of solar panels. Read below to understand how they break down.
State Incentives
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This property tax exemption allows homeowners to remove the added value of a solar panel system from the valuation of their home for tax purposes.
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You won’t need to pay sales tax on the purchase of your residential solar system.
Net Metering
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The state's strong renewable portfolio standard (RPS) requires utilities to offer net metering that pays solar users the full retail rate for their excess energy generation.
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As a net metering cap, FPL requires that systems not be sized to produce energy exceeding 115% of the household’s monthly kWh usage.
Georgia
Unfortunately, with a lack of state incentives and confusing net metering policies, the state of solar in Georgia isn’t peachy.
State Incentives
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There are currently no state solar rebates available.
Net Metering
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There are little to no state rules for net metering.
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The Public Utilities Commission (PUC) recently required Georgia Power (the state’s biggest utility) to offer net metering at retail rates for a total of 5 MW of installed systems.
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Most municipal utilities levy fixed fees of $10-$20 per month on solar owners and credit excess electricity around wholesale prices (rather than retail).
Hawaii
Since the Aloha State has the second highest electricity prices in the nation, switching to solar energy is an attractive option for homeowners. (Project Solar does not currently install in Hawaii.)
State Incentives
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The state offers a 35% solar tax credit (capped at $2,250).
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Eligible renters and low to moderate income homeowners in Hawaii can get special on-bill financing for their system.
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In Honolulu, this property tax exemption allows homeowners to remove the added value of a solar panel system from the valuation of their home for 25 years following the installation.
Net Metering
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Hawaii no longer offers net metering for solar owners.
Idaho
Idaho’s state motto is “Esto perpetua,” which is Latin for “let it be perpetual.” Although those who selected this phrase probably weren’t thinking of renewable energy resources, it certainly fits. Idaho has some great sunshine and great state incentives to help fulfill energy needs and perpetuate Idahoan life.
State Incentives
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This deducts 40% of your solar system's cost from your personal taxable income, and for 3 years following your installation, 20% of your system’s cost can also be deducted yearly.
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This deduction maxes out at $5,000 per year and $20,000 total.
Net Metering
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Customers receive compensation for their excess exported energy with a cumulative kWh credit on their bill. All unused credits expire at the end of the annualized billing period.
Illinois
The Prairie State has some statewide/utility incentives that help contribute to the savings you can enjoy from the federal solar tax credit.
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The property tax exemption allows homeowners to remove the added value of a solar panel system from the valuation of their home for tax purposes.
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Qualified low-income households can get funding to install solar panels in the state.
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To qualify, the household's total income must be 80% of the Area Median Income (AMI) or less based on the most recent tax return. Here is the income-qualification chart.
Utility Company Incentives
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Commonwealth Edison
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The utility offers customers Renewable Energy Credits (RECs) and Solar Renewable Energy Credits (SRECs).
Net Metering
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Here is Illinois’ net metering fact sheet.
Indiana
While Indiana is known for its race cars, the state has also been quick to diminish their net metering credits, but there are several state tax exemptions that help pay you back for your solar installation.
State Incentives
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Solar Easement Laws
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Parties can voluntarily enter into solar easement contracts which are enforceable by law. These contracts are created on behalf of a landowner for the purpose of assuring sufficient access to direct sunlight for their solar energy systems.
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Renewable Energy Property Tax Exemption
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The property tax exemption allows homeowners to remove the added value of a solar panel system from the valuation of their home for tax purposes.
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Indiana Sales Tax Exemption
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You won’t need to pay sales tax on your solar modules, racking, and inverters because they are directly involved in the production of electricity.
Net Metering
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The Indiana Utility Regulatory Commission (IURC) recently delivered a final order that reduces the credit received by solar owners served by CenterPoint Energy unit Vectren South and also changed the period for earning credits so that more customer-owned solar generation is credited at a lower rate.
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Vectren South’s proposal cuts the net metering rate of $0.143/kWh for residential solar to about $0.031/kWh.
Read here to learn more about the state’s net metering situation as of May 2021.
Iowa
The Hawkeye State offers several significant state solar incentives that you don’t want to miss.
State Incentives
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Residential Solar Tax Credit
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You get 15% of the system cost back on your Iowa state income tax (capped at $5,000).
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Renewable Energy Tax Exemption
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The property tax exemption allows homeowners to remove the added value of a solar panel system from the valuation of their home for tax purposes for 5 years following installation.
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State Sales Tax Exemption
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You won’t need to pay sales tax on the purchase of your solar system.
Net Metering
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A solar system’s net excess generation (NEG) is credited to a customer’s next bill at retail rate, and those credits are cashed out annually at the avoided cost rate.
Kansas
The Sunflower State has some bright sunshine along with its bright flowers, but besides a property tax exemption, the state isn’t super solar friendly with its unfavorable net metering programs.
State Incentives
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Residential Property Tax Exemption
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The property tax exemption allows homeowners to remove the added value of a solar panel system from the valuation of their home for tax purposes.
Net Metering
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Utilities in Kansas pay solar owners sub-retail rates for excess electricity exported to the grid.
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Evergy continues to collect demand charges from solar owners even after the Kansas Supreme Court ruled this practice illegal.
Kentucky
The Bluegrass State already has low utility fees, but solar panels could help you save even more money while switching to a greener energy source.
State Incentives
Net Metering
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Solar system owners are no longer guaranteed to receive the full retail rate for excess energy generation because of new state legislation recently passed.
Louisiana
Solar system users in the Bayou State are at somewhat of a disadvantage with the state’s discouraging net metering policies and a lack of statewide incentives.
State Incentives
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The Louisiana Department of Natural Resources offers low-interest loans to homeowners who want to go solar.
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Although there used to be a 50% state tax credit, it ended in 2016, and there are currently no other state incentives.
Net Metering
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Since January 2020, utilities pay solar owners in Louisiana a 12-month calculation of wholesale rates for the power they generate and export to the grid immediately, and then they have to buy power from the utility at a retail rate.
Maine
The Pine Tree State hasn’t made solar system installation a huge priority, but there are some net metering policies that can be helpful for solar users.
State Incentives
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PACE loans
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Property-Assessed Clean Energy (PACE) Loans don’t require any money down and repay with an annual assessment on your property taxes (loan maximum of $15,000 for 15 years at a 4.99% interest rate).
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Community Solar
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State laws encourage citizens to buy into larger, shared installations.
Net Metering
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Excess energy credits disappear after each 12-month billing cycle.
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Although the program was temporarily done away with, Maine has re-established their 1-to-1 net metering credits.
Maryland
The Free State has some awesome programs that will help lower the price of your solar system.
State Incentives
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Residential Clean Energy Grant program
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If you install a solar energy system, Maryland will pay you $1,000.
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Solar Renewable Energy Certificates (SREC)
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You receive one Maryland SREC for each megawatt-hour (MWh) of clean electricity your panels produce, and then you can sell it in the SREC market.
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Property Tax Exemption for Solar and Wind Energy Systems
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This property tax exemption allows homeowners to remove the added value of a solar panel system from the valuation of their home for tax purposes.
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Sales and Use Tax Exemption for Renewable Energy Equipment
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This causes the purchase of a new solar energy system to be tax-free.
Net Metering
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The state requires utility companies to offer net metering.
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The state also offers virtual net metering for community/shared solar projects.
Massachusetts
The Bay State’s electricity rates are 25% higher than the country’s average, so solar-generated electricity is an appealing possibility for its residents.
State Incentives
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If you purchase a new system, the state will give you a 15% credit of the final cost of your installation against your personal income taxes (max. $1,000).
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Excess credit can be carried over to your personal income taxes up to three years.
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Eligible homeowners can receive payments from their utility company for every kWh of solar they produce for ten years (known as SRECs in other states).
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This property tax exemption allows homeowners to remove the added value of a solar panel system from the valuation of their home for tax purposes.
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This exemption will cover 100% of the sales tax on your new home solar project, which can save you about 6.25% right off the bat.
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Eligible low-income homeowners can receive a low-interest loan provided by the Massachusetts Department of Energy Resources (DOER), and the Massachusetts Clean Energy Center (MassCEC).
Net Metering
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The state currently requires all regulated utility companies to offer net metering.
- Here is the net metering guide for Eversource, National Grid, and Unitil customers.
Michigan
The Great Lake State doesn’t have much when it comes to state incentives or tax credits/rebates, but there are established net metering policies.
State Incentives
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This is more of a financing option rather than an incentive, but it is a loan with APRs offered as low as 4.99% depending on your credit score.
Net Metering
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Utilities and cooperatives with rates regulated by the Michigan Public Service Commission are required (by law) to make this net metering program available to their customers.
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In this program, billing is based on net usage, and customers receive credit for the full retail rate for all excess kWh. These credits can carry forward indefinitely.
Minnesota
The Land of 10,000 Lakes may not be the first place you think of when it comes to solar energy, but the state’s net metering program and incentives from local utility companies can help make the switch a profitable one.
State Incentives
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You won’t need to pay sales tax on the purchase of your solar system.
Utility Company Incentives
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This program is powered by the Minnesota Renewable Development Fund and is a performance-based incentive that offers solar owners (in Xcel’s service area) a yearly payment based on the energy production of their system. Xcel pays $0.08/kWh of solar production annually for up to 10 years.
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This is a lottery-based rebate that will cover 60% of the price of a MN solar installation.
Net Metering
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According to the state’s net metering page, in Minnesota, the amount a customer is paid for excess electricity generation is found in their utility’s tariff (often called the compensation rate). The compensation rate depends on several factors:
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The size of the customer’s system
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The specific costs and retail rates of their utility (updated annually)
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Whether the customer is served by a cooperative, municipal, or public utility
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Both net metering and net billing are offered. See this chart to understand their differences.
Mississippi
The Magnolia State does not have much to offer solar owners, but a few local utility companies offer some incentives.
State Incentives
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There are no state income tax rebates, exemptions, or credits, and Mississippi has not established a Renewable Energy Portfolio Standard yet.
Utility Company Incentives
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The Green Power Providers (GPP) program is offered by Tennessee Valley Authority (TVA), and participants are paid for every kWh generated by their solar system.
Net Metering
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For Mississippi Power customers, the rate paid for excess energy generation by a net metered customer is 2.5 cents/kWh above the company's avoided-cost rate.
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For residential net metered customers that qualify as low-income customers, an additional 2 cents/kWh will be added to the avoided-cost value in addition to the 2.5 cents/kWh.
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These rates are established by Mississippi Public Service Commission rules, and the energy credit value is carried forward indefinitely.
Missouri
St. Louis is known as “The Gateway of the West,” and the state of Missouri is a great gateway to getting solar panels on your roof. Here are some incentives offered by the state and primary utility companies.
State Incentives
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This property tax exemption allows homeowners to remove the added value of a solar panel system from the valuation of their home for tax purposes.
Utility Company Incentives
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Columbia Water & Light gives customers a rebate of up to $625/kW of solar power generation capacity (up to 10 kW).
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Kansas City Power & Light’s solar rebate gives customers a payment of up to $1 per watt of solar power installed.
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Through Empire District Electric’s solar rebate, you can receive up to $2 per watt.
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Ameren Missouri’s Solar PV Rebate Program offers customers $0.25 per watt upfront for installing solar panels (which can come out to an extra $2,000 in savings).
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Unfortunately, this offer will expire Dec. 31, 2023.
Net Metering
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Rates vary from company to company, but if you pay $.12/kWh for electricity from the utility company, they will typically only pay you back $.03/kWh for the excess you send back to the grid.
Montana
A state that has been dubbed "Big Sky Country" sounds like a perfect match for solar panels, and there are several incentives in place that encourage this pairing.
State Incentives
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Solar installers are offered a $500 state income tax credit per taxpayer with a $1,000 limit per household.
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Unused credit can roll over for 4 years.
Net Metering
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Rules are in place so that net metering in the state will be preserved until solar power reaches 5% of the state's total energy generation capacity.
Nebraska
The Cornhusker State's current incentives and net metering policies demonstrate that the state hasn't completely embraced solar energy solutions, but there are a couple of opportunities that you may be able to take advantage of.
State Incentives
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Nebraska allows for a refund of the sales and use taxes paid for a renewable energy system used to produce electricity for sale, but the refund doesn’t apply to the first 1.5% of sales tax charged by a municipality.
Net metering
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All monthly surplus energy production will be applied as a credit to your next bill at whatever the utility decides is fair.
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Net metering is available for all solar power systems up to 25 kW on a first-come first-serve basis (until net-metered systems reach a total of 1% of a utility’s peak electricity demand during the previous year).
Nevada
The Silver State has some of the strongest sunshine in the country, but it doesn't have a plethora of statewide incentives, but there are some deals offered by utility companies.
State Incentives
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These state laws protect your right to install and generate electricity with solar panels. In Nevada, no contract or other legal documents (like HOA bylaws) can keep homeowners from installing solar.
Net Metering
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NV Energy
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The company offers an upfront storage incentive of up to $3,000 depending on the size of the battery and TOU (time-of-use) rate.
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This company’s customers can receive credits worth 95% of the retail rate of electricity for their excess solar production.
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For every 80 megawatts installed, credit values for new customers will decline by 7% with a minimum credit value of 75% of the retail rate.
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Valley Electric Association
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VEA will give you credit for your solar electricity at the same rate you would pay the utility.
New Jersey
The Garden State’s tax exemptions and strong net metering programs make it a viable location for solar.
State Incentives
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Solar Sales Tax Exemption
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Solar owners are 100% exempt from any sales tax, which means that you ultimately spend 7% less on your solar equipment.
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This property tax exemption allows homeowners to remove the added value of a solar panel system from the valuation of their home for tax purposes.
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To claim the exemption, solar owners must apply for a certificate from their local assessor, and the exemption will take effect a year after a certification is granted.
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Transitional Renewable Energy Certificates (TRECs)
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One TREC is granted for every MWh of solar power generated by a solar system. These TRECs can be sold on a market to utilities to help them meet the New Jersey Renewable Portfolio Standard (RPS).
Net Metering
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Customers can receive a month-to-month credit for excess energy at the full retail rate and can also be compensated for remaining excess at the avoided-cost of wholesale power at the end of an annualized period.
New Hampshire
The Granite State offers some strong incentives to its residents to encourage solar system installation.
State Incentives
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Small PV Systems Program
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If your solar system is 10 kW or less, you can qualify for this incentive program which pays $0.20 per watt up to $1,000 or half the cost of the system (whichever comes first).
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Local Property Tax Exemption
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This property tax exemption allows homeowners to remove the added value of a solar panel system from the valuation of their home for tax purposes.
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New Hampshire Low-Income Energy Assistance Program (LIHEAP)
Net Metering
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If you are a customer of Eversource, Liberty Utilities, New Hampshire Electric Cooperative or Unitil, you can take advantage of net metering.
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Here is the state’s net metering tariff structure.
New Mexico
The Land of Enchantment is a sunny state that is super solar-friendly with its many statewide incentives.
State Incentives
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The state government can give you a tax credit if you get your home certified sustainable by the U.S. Green Building Council.
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The credit’s value is determined by your certification level, but to give you a point of reference, some earn as much as $6.50 per square foot for having a sustainable solar home.
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This credit can reduce your state tax payments by 10% off your total solar energy expenses (up to $6,000).
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This property tax exemption allows homeowners to remove the added value of a solar panel system from the valuation of their home for tax purposes.
Utility Company Incentives
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The company will pay you $0.02 per kilowatt-hour of electricity generated by your solar panels as a part of their renewable energy certificate purchase program.
Net Metering
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With net-metered systems (10 kW or less), it’s the utility’s choice how to compensate customers for net excess generation (NEG).
New York
Electricity rates in the Empire State are 48% higher than the national average, so it’s not surprising that you’re looking into other energy source options.
State Incentives
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Tax credit of 25% the total PV installation cost (limited to $5,000 state tax reduction)
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Unused credit can carry over for 5 years after installation
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Homeowners can receive up to $1,000 for every kW of solar installed
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Incentive rate will depend on your region (Long Island, Con Edison territory[NYC and Westchester County], and Upstate New York)
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Home Solar Project Sales Tax Exemption
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You won’t need to pay sales tax on the purchase of your residential solar system.
Net Metering
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The New York Public Service Commission (NYPSC) recently approved changes to the state’s net metering program which will be implemented in 2022 and include an additional charge for solar customers.>
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The new program, Value of Distributed Energy Resources (VDER), will not pay solar owners to receive the full retail rate of electricity (like they do with net metering). Instead, they would receive a Value Stack Tariff rate.
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This tariff rate varies since it depends on factors like what time and where the electricity was produced.
North Carolina
North Carolina has some appealing solar incentives, especially from its primary utility companies.
State Incentives
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The state has some revolving loan options that have an interest rate cap at 8%, can’t last longer than 20 years, and can be easily renewed.
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State Property Tax Exemption
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This property tax exemption allows homeowners to remove the added value of a solar panel system from the valuation of their home for tax purposes.
Utility Company Incentives
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Duke Energy
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The company offers $.60/watt rebate for systems up to 10 kW (an average 6 kW system would be eligible for a rebate of $3,600). However, Duke has run out of funds though in the first half of 2021, and there is now a waitlist for the rebate.
Net Metering
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The North Carolina Utilities Commission (NCUC) established net metering rules for the state’s three investor-owned utilities—Duke Energy, Progress Energy and Dominion North Carolina Power
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Excess generation credits can rollover from month to month (at the full retail rate), but annually on June 1st, unused credit is forfeited.
North Dakota
The Roughrider State’s solar programs are currently kind of rough, but there is a tax exemption offered and some structure in their net metering policies.
State Incentives
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Property Tax Exemption
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This property tax exemption allows homeowners to remove the added value of a solar panel system from the valuation of their home for tax purposes for 5 years following installation.
Net Metering
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The state requires investor-owned utilities (IOU) to offer net metering to all customers, but municipal utilities are exempt from the net metering regulation.
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IOUs are required to pay customers for all surplus energy at the utility’s avoided-cost rate—the wholesale rather than the retail rate.
Ohio
While the Buckeye State has a couple of statewide incentives, it has struggled to promote and regulate strong net metering programs.
State Incentives
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For each megawatt hour (MWh) of electricity your solar panels produce, you will receive one SREC, and these certificates can be sold.
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If you apply to the Energy Conservation for Ohioans (ECO-Link) Program, you can receive up to a 3% interest rate reduction on your bank loans for up to seven years.
Net Metering
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Across the state, utility companies have inconsistent net metering rules.
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Electric cooperatives and municipal companies are not required to provide it, only investor-owned utilities are.
Oklahoma
The Sooner State’s current legislation doesn’t do much to support solar system installers.
State Incentives
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There are no statewide tax incentives, rebates, sales tax exemptions, or property tax exemptions in Oklahoma.
Net Metering
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The state requires investor-owned utilities and electric cooperatives to offer net metering to all customers.
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Utility companies are not actually required to purchase your excess electricity generation.
Oregon
The Beaver State is working hard to make solar more accessible to residents with a couple of state and utility programs.
State Incentives
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In 2020, a new statewide solar rebate program became available, but it had a budget of only $2 million for the year, so it was closed to new applications in April of 2020.
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The program granted applicants $200/kW (up to 40% of a solar system's total costs or $5,000, whichever was less).
Utility Company Incentives
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The Energy Trust of Oregon provides to PGE and Pacific Power customers ($300/kW) up to a max of $2,400 (rebate program was closed to new applications in April of 2020).
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With Portland General Electric (PGE) or Pacific Power, you can benefit from Oregon’s solar electric incentive program, which pays you a rebate of $0.20/W to $0.25/W if you own your system.
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For example, with an average 6-kilowatt (kW) solar panel system, you could receive an additional $1,500.
Net Metering
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Oregon state law requires all utilities to offer net metering (some requirements differ between the state’s primary IOUs, its municipal utilities, electric cooperatives, and people’s utility districts.
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Oregon is also the only state that takes excess generation credits leftover at the end of a 12-month period and uses them to fund its low-income utility programs.
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Oregon’s net metering rules do not apply to customers of Idaho Power.
Pennsylvania
The aptly named “Coal State” is the fourth highest producer of CO2 emissions in the country, which has helped push the state to become more earth-friendly through incentivizing solar installations.
State Incentives
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Solar owners can receive SRECs based on their system production, and they can later sell the certificates
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Prices for these credits can be found on the SRECTrade website.
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Philadelphia residents may qualify for a $200 rebate for every kilowatt of solar power installed ($100,000 cap).
Net Metering
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The state requires investor-owned utilities to offer customers net metering.
- Customers are paid retail rates for their excess energy generation.
Rhode Island
Little Rhody offers several substantial solar incentives to its residents.
State Incentives
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Small-scale Solar Grants
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Solar owners can receive $0.85 per watt via the installation company ($7,000 cap).
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For example, if you install a 5 kW system on your roof, you could receive a $4,250 cash rebate.
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Residential Solar Energy Property Tax Exemption
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With the value solar adds to your home, your property taxes will not increase because of this exemption.
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Renewable Energy Products Sales and Use Tax Exemption
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You will not need to pay any tax on your solar system.
Net Metering
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Rhode Island customers receive credit for their system’s excess generation at the utility company’s avoided cost rate, up to 125% of the customer’s own consumption during a billing period.
South Carolina
The Palmetto State offers a hefty tax credit that is comparable to the federal government’s. Combined, these credits can make solar a steal.
State Incentives
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Residents can claim 25% of their solar costs as a tax credit which can be carried over for up to 10 years.
Utility Company Incentives
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Duke customers can get a rebate of $1.00 per watt of solar power they install on their home or business.
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For a 6 kW system, you would receive an extra $6,000 to help cover the costs of your solar system.
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Santee Cooper customers are eligible for a rebate of $1.30 per watt of installed solar (up to $5,200).
Net Metering
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Net metering credits are allocated monthly at a rate of $0.10 to $0.11/kWh. Unused credits are paid out annually in March, and you can view SC’s current electricity rates on Duke Energy's website.
South Dakota
The Mount Rushmore State offers a tax exemption, but its net metering policies (or lack thereof) can be a bit off-putting to potential solar buyers.
State Incentives
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All solar power systems less than 5 MW (most systems) are assessed in the same manner as a conventional energy system (even though a solar power system has a much higher value because of long-term electricity savings).
Net Metering
Tennessee
The Volunteer State unfortunately has not volunteered to help out solar installers except through its sales tax exemption.
State Incentives
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There is no state renewable portfolio standard (RPS), which often pushes local utilities to create rebates for customers.
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When you install a solar power system in Tennessee, the cost of that system is exempt from all sales tax, which saves you 6.25-8.25 % off your starting solar cost.
Net Metering
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There is no statewide program for net metering, but with Tennessee Valley Authority's (TVA) new Dispersed Power Program, solar users can only sell their electricity to their utility at the avoided cost rate (sub-retail rate).
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With this in mind, in Tennessee, you’ll want to size your system well and possibly explore on-site energy storage so you aren't selling your energy at a discount and having to pay the retail rate when you need to pull from the grid.
Texas
They say everything’s bigger in Texas, but the state doesn’t offer huge solar incentives for residents. However, there are several rebate programs depending on your utility company. Here are some of the deals with the biggest utility companies in Texas.
State Incentives
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Texas has a solar rights law that prevents HOAs from banning solar energy systems on their properties.
Utility Company Incentives
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As an Austin Energy customer, you can get a rebate of $2,500. Austin Energy’s Value of Solar Tariff also pays customers $0.097 for every kilowatt-hour (kWh) that solar panels generate.
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If you’re a CPS Energy customer, you can receive up to $1.20/W of solar panels that you install on your roof. The value of this incentive will continue to drop as the number of solar users increases.
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Guadalupe Valley Electric Cooperative and the City of Sunset Valley all also offer rebates for homeowners in their areas.
Net Metering
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There is not a state-wide net metering policy, but many utilities in the state (including El Paso Electric, the City of Brenham, CPS Energy, and Green Mountain Energy) have policies that credit solar system owners for the electricity that their panels produce.
Utah
The Beehive State is busily getting solar panels installed. There are many incentives (for system and storage installation) offered by the state that you don’t want to miss out on.
State Incentives
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Every year, this tax credit maximum will decrease by $400 each year until its expiration in 2024.
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Utah exempts the purchase or lease of solar equipment from the state sales tax.
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An easement is a paid agreement with your neighbors that they will not obstruct rays from hitting your roof.
Net Metering
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RMP doesn’t offer the full retail rate for their net metering credits in Utah. As of 2021, customers receive a credit rate of about $0.06 per kilowatt-hour (kWh), or roughly half of the retail rate.
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The company does not offer solar rebates.
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PacifiCorp
Vermont
The Green Mountain State is helping residents go green with a couple tax exemptions and a net metering program.
State Incentives
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The Renewable Energy Systems Sales Tax Exemption
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You won’t need to pay sales tax on the purchase of your solar system.
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This exemption allows homeowners to remove the added value of a solar panel system from the valuation of their home for tax purposes.
Net Metering
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Net excess generation (NEG) is credited to the customer's next bill at the blended residential rate; excess credits not used within 12 months of generation granted to utility.
Virginia
Virginia is for lovers and for lovers of solar energy. Here are statewide utility-based incentives that are in place to make solar panels a more financially plausible option.
State Incentives
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This property tax exemption allows homeowners to remove the added value of a solar panel system from the valuation of their home for tax purposes. (Not all localities allow this exemption, so be sure to verify before you count on it.)
Net Metering
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Net metering applies to all residential solar systems up to 20 kW.
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All the solar energy you create and aren’t able to use in your home is applied as a credit to your next bill at the utility’s avoided cost rate.
Washington
When it comes to solar irradiance, Washington isn’t the brightest, but there are a couple of incentives that can help pay you back for the installation of your system.
State Incentives
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The law allows parties to enter into solar easement contracts (if they wish) for the purpose of ensuring adequate exposure of a solar-energy system.
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This act removes residential solar systems’ sales tax.
Utility Company Incentives
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Puget Sound Energy has a production incentive program.
Net Metering
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Washington’s updated solar net metering statute decreed that an electric utility must offer to continue to make net metering available to eligible customer-generators on a first-come, first-serve basis for the next 8 years.
West Virginia
Historically, West Virginia has been known for its coal-powered electricity, but it has recently made some substantial efforts to incorporate cleaner energy with their solid net metering program.
State Incentives
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There are currently no statewide solar rebates or credits.
Net Metering
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West Virginia requires all utilities to offer net metering. All monthly surplus energy production is applied to your next bill, and unused credits can roll over indefinitely.
Wisconsin
America’s Dairyland has some rich tax exemptions, but net metering programs can significantly vary based on your utility company.
State Incentives
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Solar owners do not need to pay property or sales tax on their systems.
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Eligible future solar owners can receive $500 to offset the cost of installing a system.
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Solar Access Rights
Net Metering
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Most of Wisconsin's utilities offer net metering.
You can look up your provider here to find information about tariffs/net metering.
Wyoming
The Cowboy State has some great sunshine, but as far as solar incentives go, the state is still figuring some things out.
State Incentives
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Wyoming has no Renewable Portfolio Standard (RPS) and few legislated programs to promote renewable energy adoption.
Net Metering
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Net excess generation (NEG) is treated as a kilowatt-hour credit on the customer's following bill. Each January, a utility will purchase any unused credits from solar owners at the utility's avoided-cost rate.
- The state is currently deciding whether to overhaul its net metering system or not.