Call Us With Your Solar Questions: (845) 262-4480
Solar State Incentives Incentives
The Local Solar Energy Foundation takes great pride in offering essential educational resources designed to assist homeowners, such as yourself, in making informed decisions about transitioning to solar energy. Our team of solar experts is ready and eager to address any inquiries you may have, ensuring a seamless and confident transition to solar power for your home.
Welcome to our guide on solar incentives in the United States! We're excited to share valuable info for eco-friendly homeowners and businesses interested in using solar power and saving money.
In this guide, we explain the solar incentives each state offers. It's a one-stop resource to understand the financial benefits of going solar in your area. Solar incentives can be confusing, but our state-by-state guide gives you the knowledge to make smart choices. Come with us to discover the solar potential in your state for a greener future!
List of States with Their Solar Incentives
Arizona
Residential Arizona solar tax credit - The Residential Arizona Solar Tax Credit reimburses you 25 percent of the cost of your solar panels, up to $1,000, right off of your personal income tax in the year you install the system.
Federal Solar Tax Credit - Allows eligible homeowners to reduce the amount of tax they owe by up to 30% of their solar panel installation cost from their federal income taxes. It applies to both solar panels and battery storage systems.
Energy Equipment Property Tax Exemption - Solar panels and other solar technologies are eligible for a property tax exemption. If the solar panel system increases the home value, the homeowner may be exempt from paying taxes on that increased value. Extends to various solar technologies, including passive solar technology, solar water heaters, solar space heaters, solar thermal electric, solar thermal process heaters, solar pool heaters, and other solar-powered appliances.
California
Disadvantaged Communities – Single-Family Solar Homes (DAC-SASH): Offers up to $3 per watt in financial assistance for qualifying low-income residents.
Self-Generation Incentive Program (SGIP): Provides up to $200 per kWh for solar battery installations.
Equity Resiliency Program: Includes rebates of $1,000 per kWh for energy storage systems, targeting low-income families in high-risk fire areas or those who have experienced multiple Public Safety Power Shutoffs.
Active Solar Energy System Property Tax Exemption: Eliminates property tax for solar system installations.
Local City and Utility Company Rebates: Additional rebates and incentives offered at the city and utility level.
Federal Solar Tax Credit: A federal tax credit for up to 30% of installation costs.
Colorado
Federal Solar Investment Tax Credit (ITC): Allows for a 30% tax credit on the total cost of solar equipment, including installation.
Net Metering: Homeowners can sell excess energy produced by their solar panels back to the grid in exchange for credits on future energy bills.
Cash Rebates: Programs like EnergySmart Colorado and Holy Cross Energy offer rebates ranging from $400 to $3,000 for solar installation.
Colorado Solar Property Tax Exemption: This includes exemptions from sales tax on solar system purchases and property tax on the increased home value due to solar installation.
Connecticut
Sales and Use Tax Exemption: This saves homeowners 6.35% on the cost of solar PV system installations.
Property Tax Exemption for Renewable Energy Systems: Homeowners are exempt from paying additional property taxes on the increased value of their home due to solar installations.
Federal Solar Tax Credit: Homeowners can claim a 30% tax credit on the cost of their solar panel system.
Delaware
Federal Investment Tax Credit (ITC): 30% tax credit on the total solar system cost if installed before the end of 2032.
Net Energy Metering: Credit at full retail rate for surplus electricity generated.
Solar Rebates-
Delmarva Power: Up to $6,000.
DEMEC: Up to $3,500.
Delaware Electric Cooperative: Up to $2,500.
Solar Renewable Energy Credits (SRECs): Approximately $32 per SREC, potentially adding up to $250 annually over 20 years.
Florida
Federal Solar Tax Credit: Up to 30% credit on the cost of solar installation, applicable to federal income taxes.
Property Tax Exemption: Exemption from property tax for the added value due to solar installations.
Sales Tax Exemption: No sales tax on solar energy systems, saving 6% on installation costs.
Net Metering: Compensation for excess energy generated, either as bill credits or cash.
Local and Provider Incentives: Various local rebates and solar provider-specific financing options or discounts.
Hawaii
Renewable Energy Technologies Income Tax Credit: 35% of installation costs up to $5,000.
Real Property Tax Exemption: No tax on increased property value due to solar installations for 25 years in Honolulu.
Hawaiian Electric Battery Bonus Program: $850 per kilowatt upfront, plus $5 per kilowatt per month for 10 years for adding energy storage.
Green Energy Money Saver (GEMS) Program: Low-interest solar loans at 5.5% for up to 20 years.
Idaho
Federal Solar Investment Tax Credit (ITC): Offers a 30% tax credit on the installation cost.
Residential Alternative Energy Tax Deduction: Provides a tax deduction of 40% of the system cost in the first year and 20% for the next three years.
Idaho Net Metering: Allows homeowners to earn credits by sending excess solar energy back to the grid.
Low-Interest State Energy Loans: Offers low-interest loans for solar installations with a 4% cap on interest rates and a five-year repayment period.
Illinois
Solar Renewable Energy Certificates (SRECs): Earn credits for the electricity your system produces.
Property Tax Exemption: No increased property taxes due to solar installation.
Net-Metering: Get paid for excess energy your system sends back to the grid.
Federal Solar Tax Credit: Claim 30% of your solar system cost on federal taxes.
Maryland
Federal Investment Tax Credit: 30% tax credit on the cost of solar panel installation.
SREC Program: Earnings from generated solar energy sold in the SREC marketplace.
Residential Clean Energy Rebate: Up to $1,000 rebate for solar panel installation.
Sales Tax Exemption: No state sales tax on solar panel systems.
Property Tax Exemption: No increase in property taxes due to solar panel installation.
Massachusetts
Sales and Property Tax Exemptions: Eliminates state sales tax and offers a 20-year property tax exemption for solar installations.
State and Federal Solar Tax Credits: Includes a 30% federal tax credit and up to a $1,000 state tax credit.
Solar Massachusetts Renewable Target (SMART) Program: Provides monthly compensation for solar generation.
Municipal Solar Rebates: Offers substantial rebates from several municipal utilities.
Net Metering Policies: Allows homeowners to earn credit for excess electricity generated, offsetting their electricity costs.
New Jersey
Successor Solar Incentive (SuSI) Program: Pays $90 per SREC-II for solar-generated electricity over 15 years.
Solar Sales Tax Exemption: Waives state sales tax on solar energy equipment purchases.
Property Tax Exemption: Prevents increase in property taxes due to solar system installation.
Federal Solar Tax Credit: Offers a 30% tax credit for solar installations until 2032, then gradually decreases.
Net Metering: Credits homeowners for excess solar energy returned to the grid.
New Mexico
Federal Solar Tax Credit: Covers 30% of the cost of solar installations.
New Mexico State Tax Credit: Offers up to $6,000 or 10% of the solar system cost.
Net Metering: Credits homeowners for excess solar energy generated.
Property Tax Exemption: No additional property taxes on the value added by solar systems.
Sales Tax Exemption: Exempts solar systems from gross receipts tax.
Solar Easement: Protects homeowners' rights to sunlight for their solar panels.
North Carolina
Duke Energy Solar Panel Rebates: Offers up to $0.40/Watt for residential systems.
Low-Interest Solar Loans: Enabled by state legislation, with terms up to 20 years and interest rates capped at 8%.
Federal Solar Tax Credit: Reduces solar system costs by 30% for those who buy their system outright.
State Property Tax Exemption: Excludes the added value of solar systems from property tax assessments.
Building Permit Rebates in Asheville: Rebates on building permits for solar installations.
Net Metering: Credits homeowners for surplus electricity generated by their solar systems.
Ohio
Solar Renewable Energy Credits (SRECs): Earn credits for solar electricity generation, which can be sold for cash.
Qualified Energy Project Tax Exemption: Exemption for certified solar energy projects from certain taxes.
Energy Conservation for Ohioans (ECO-Link) Program: Offers interest rate reductions on loans for solar installations.
Ohio Property-Assessed Clean Energy (PACE) Financing: Provides fixed-rate loans covering 100% of solar project costs.
Local Tax Abatements: In cities like Cleveland and Cincinnati, property tax exemptions for solar improvements.
Federal Solar Investment Tax Credit (ITC): Deducts 30% of solar installation costs from federal taxes.
Ohio Net Metering: Credits homeowners for excess electricity generated by their solar systems.
Pennsylvania
Pennsylvania Sunshine Program: Offers rebates for solar installations, up to $5,000 for households.
Solar Renewable Energy Certificates (SRECs): Homeowners can earn and sell SRECs for generated solar electricity.
Solarize Philly: Provides discounted solar installation rates and grants for low- and moderate-income households in Philadelphia.
Philadelphia Solar Rebate Program: Offers a one-time incentive for solar installations, with savings of $0.20 per watt for residential projects.
Federal Solar Tax Credit: Allows a tax deduction of 26% to 30% of solar installation costs.
Pennsylvania Net Metering: Credits homeowners for surplus solar energy fed back into the grid.
Puerto Rico
Puerto Rico Energy Resilience Fund: Offers up to $450 million for residential rooftop solar and battery storage installations, targeting very low-income households.
Solar Ambassador Prize: Provides $3.5 million in funding for local organizations to assist households in enrolling in
residential solar and battery storage programs.
Grid Resilience State and Tribal Formula Grants: Over $7.4 million allocated to modernize Puerto Rico's electric grid and enhance reliability.
Inclusive Energy Innovation Prize: Supports community-led renewable energy projects, like the Cooperativa Hidroeléctrica de la Montaña's initiative for microgrid deployment using rooftop solar and storage systems.
South Carolina
Federal Solar Investment Tax Credit: 30% reduction on taxable income for solar installations.
State Tax Credit: 25% credit on solar installation costs, up to $3,500 or 50% of state tax liability.
Net Metering: Credit for surplus energy produced by solar systems of 20 kW or less.
Texas
Federal Solar Investment Tax Credit (ITC): Offers a 30% tax credit on solar equipment costs.
Local Net Metering: Credits from utility companies for unused electricity generated by solar panels.
Texas Solar Property Tax Exemption: Prevents increase in property taxes due to solar installations.
Local Incentives: Rebates and additional benefits from local governments and utility companies.
Solar Buyback Programs: Compensation for excess power exported to the grid by solar systems.
Utah
Renewable Energy Systems Tax Credit (RESTC): 25% of solar system costs or $400, one-time incentive.
Rocky Mountain Power Wattsmart Battery Program: Upfront rebate of $400 per kilowatt of battery capacity.
Annual credit of $15 per kilowatt starting from the second year.
Virginia
Taxpayers can deduct 20% of the amount of sales tax paid on solar equipment from their taxable personal income.
West Virginia
Claim up to 30% of your total solar costs for systems installed from the beginning of 2022 through 2032. If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 30% = $6,000.
Read Our Latest Blogs
Delivering unbiased information helping homeowners and businesses
10 Ways Photovoltaic Solar Energy Stands Out from Alternatives
In an era where sustainable and renewable energy sources are gaining prominence, photovoltaic solar energy has emerged as a standout solution. Harnessing the power of the sun, solar energy has become increasingly popular due to its numerous benefits over alternative energy sources. Let’s explore 10 ways in which photovoltaic solar energy sets itself apart from other alternatives, highlighting why it is a smart choice for a cleaner, greener future.
Abundant and Renewable: Unlike fossil fuels, which are finite and depletable, the sun's energy is abundant and renewable. With nearly limitless power potential, photovoltaic solar energy provides a sustainable and long-term solution to our energy needs, ensuring a reliable source of electricity for generations to come.
Environmentally Friendly: Solar energy is a clean and environmentally friendly energy source. It produces no greenhouse gas emissions, contributing to a significant reduction in air pollution and mitigating climate change. By choosing solar energy, we can reduce our carbon footprint and work towards a greener and healthier planet.
Download Our Free Guide Or Speak with One of Our Solar Experts Now, Call (845) 262-4480
Energy Independence: One of the key advantages of photovoltaic solar energy is its potential to offer energy independence. By installing solar panels on homes or businesses, individuals can generate their own electricity and reduce their reliance on traditional energy sources. This independence provides stability, especially during power outages or emergencies.
Cost-Effective: Over the years, the cost of solar panels has significantly decreased, making photovoltaic solar energy increasingly affordable. Additionally, once installed, solar energy systems have minimal maintenance costs. With numerous financing options and potential savings on electricity bills, solar energy can result in significant long-term cost savings.
Scalability and Modularity: Photovoltaic solar energy systems are highly scalable and modular. They can be installed in various sizes and configurations, ranging from small residential setups to large-scale utility plants. This flexibility makes solar energy suitable for a wide range of applications, accommodating diverse energy needs in both urban and rural areas.
Silent and Non-Intrusive: Solar panels operate silently, without producing any noise pollution. Unlike certain alternative energy sources such as wind turbines or fossil fuel generators, solar energy systems have minimal impact on the surrounding environment and human settlements. This characteristic makes them an ideal choice for residential and commercial installations.
Decentralized Power Generation: Solar energy promotes decentralized power generation, shifting away from centralized energy production. By generating electricity at the point of consumption, solar energy reduces transmission and distribution losses associated with long-distance power delivery. This decentralized approach enhances grid resiliency and helps avoid energy losses during transmission.
Download Our Free Guide Or Speak with One of Our Solar Experts Now, Call (845) 262-4480
Long Lifespan and Durability: Solar panels have a long lifespan, typically ranging from 25 to 30 years or more. With minimal degradation over time, photovoltaic solar energy systems offer reliable and durable power generation. Additionally, advancements in solar technology continue to improve the efficiency and longevity of solar panels, ensuring a high return on investment.
Job Creation and Economic Benefits: The solar energy sector has the potential to create numerous job opportunities (growing from 250,000 to 750,000 workers by the end of the decade). From manufacturing and installation to maintenance and research, the solar industry supports a range of employment prospects. Moreover, investing in solar energy stimulates local economies, reduces dependence on foreign energy sources, and promotes sustainable economic growth.
Technological Advancements and Innovation: The field of photovoltaic solar energy is rapidly evolving, driven by continuous technological advancements and innovation. Researchers and engineers are constantly working on improving solar panel efficiency, storage solutions, and integration with other renewable energy sources. This ongoing progress ensures that solar energy will continue to be at the forefront of the global energy transition.
Conclusion: Photovoltaic solar energy stands out from alternatives due to its abundance, environmental friendliness, cost-effectiveness, scalability, and many other advantages. By harnessing the power of the sun, we can reduce our carbon footprint, achieve energy independence, and create a sustainable future. As solar technology continues to evolve, its potential to revolutionize the energy sector becomes even more promising. Embracing photovoltaic solar energy is a wise choice that paves the way for a cleaner, greener, and more prosperous world.
