The federal solar tax credit has ended. In 2026, your state, utility and city decide which incentives you can get.
Key findings
- No federal credit for home systems placed in service after 2025 (IRS).
- Six states give a tax credit: Arizona, Hawaii, Massachusetts, New Mexico, New York and South Carolina.
- Rebates are local, mostly from utilities such as Austin Energy and Santee Cooper.
- 25 states still credit exports at the full retail rate.
- Some programs are full, such as California’s battery rebate (SGIP).
Find solar incentives in your state
Pick your state to see how your utility pays for the power you send back, the programs we checked on official sources, and the full state guide. You can use it without signing up.
Colour shows how exports are credited for new customers at each state’s main utilities.
Choose a state in the list or on the map. We show the export-credit rule, the programs we checked, and a link to that state’s full guide.
All 52 state guides
- 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
- Puerto Rico
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Washington D.C.
- West Virginia
- Wisconsin
- Wyoming
Export rules come from the EcoGen Solar Database (utility tariffs and state rules, sources retrieved June 2026, with corrections from our September 2026 checks). They describe the main rule in each state. Your utility’s current tariff decides what you actually get. This finder does not decide whether you qualify.
Which solar incentives are available in 2026?
There are six main types. The biggest difference between them is when the money reaches you: on the invoice, at tax time, or slowly over years. That timing matters when you compare quotes and plan cash flow.
| Benefit type | When you benefit | What it changes | How reliable | Main condition |
|---|---|---|---|---|
| Cash rebate | At purchase | Lowers what you pay for the system | Least certain. Fixed budgets, often first come, first served | Often needs approval before install; funds can run out |
| State tax credit | At tax time | Lowers the state income tax you owe | Set in law, but capped. Value depends on your tax bill | You need enough state tax to use it; caps apply |
| Sales tax exemption | At purchase | Removes sales tax on qualifying equipment | Usually stable. Set in state law | Only eligible items; may already be in the quote |
| Property tax exclusion | Over time | Keeps solar out of your property assessment | Usually stable. Set in state or local law | State and local assessor rules |
| Export credits (net metering) | Over time | Credits your bill for power you send to the grid | Can change. New customers often get a lower rate when a tariff is revised | Utility tariff and your enrollment date |
| Production payments | Over time | Pays for the solar power you generate | Limited. Registration closes when a capacity block fills | Registration; the contract decides who is paid |
| Battery programs | At purchase Over time | Rebate on a battery, or payments for sharing it | Varies. Each utility sets its own terms and budget | Approved equipment; utility may use your battery at peak times |
Swipe the table sideways to see all columns.
Before you count on any incentive. No incentive is guaranteed. Eligibility is different for each household and each type of system. Programs can close, run out of money or change their rules, and utilities can change their tariffs. Count an incentive only when the administrator has confirmed it in writing.
Cash rebates
At purchaseA rebate is money from a state program or utility that lowers the system price. Some go to your installer and come off the invoice. Others are paid after inspection. Most have a set budget, so a rebate is only real once it is approved in writing.
Austin Energy offers $4,000 for qualifying home solar projects. You need an Austin Energy home account, a new system of at least 3 kW DC and a participating contractor. You must get a rebate confirmation letter before installation. This is one city utility, not a Texas-wide program.
Source: Austin Energy, checked September 28, 2026.
Rebates, grants and loans by state15 states
| State | Program | Benefit | Status | Source |
|---|---|---|---|---|
| California | DAC-SASH (GRID Alternatives) | No-cost or low-cost solar for income-qualified homeowners | Open, limited funding | Official source |
| Delaware | DNREC Green Energy Program solar PV grant (Delmarva customers) | Delmarva residential customers can get a grant of $0.80 per watt, up to $10,000. | Open, limited funding | Official source |
| Florida | OUC battery storage rebate | Bill credit of $150 per kWh of battery capacity, up to $2,000. | Open | Official source |
| Illinois | ComEd Distributed Generation Rebate (Rider DG REBATE) | A one-time rebate of $300 per kW of solar nameplate capacity and $300 per kWh of paired battery capacity for residential customers. | Open | Official source |
| Maryland | Maryland Solar Access Program (FY27, MEA) | Gives income-eligible homeowners a rebate toward a solar PV system. | Open, limited funding | Official source |
| Missouri | Columbia Water & Light solar rebate | Rebate of $500 per kW of solar capacity, multiplied by a peak factor of up to 1.1 based on the array's tilt, direction and shading, so up to $550 per kW. | Open | Official source |
| Montana | DEQ Alternative Energy Revolving Loan Program | Low-interest state loan of up to $40,000 at a fixed 3.5% (4.023% APR) for 2026. | Open, limited funding | Official source |
| Nebraska | Dollar and Energy Saving Loans (DWEE) | Low-interest loans at 5%, 3.5% or less for up to 10 years; a solar loan is limited to $14,000 for the first kW plus $4,000 for each extra kW, up to 15 kW. | Open | Official source |
| Nebraska | OPPD $2,000 solar rebate | One-time rebate of $2,000 for a qualifying solar system. | Open | Official source |
| Oregon | Energy Trust of Oregon solar incentive | A per-home cash incentive of $3,500 for PGE customers or $2,500 for Pacific Power customers. | Open, limited funding | Official source |
| Pennsylvania | PECO $500 home solar rebate | One-time rebate of $500 per home for a new solar installation. | Open | Official source |
| Rhode Island | Renewable Energy Fund (REF) Small Scale Solar grant, RI Commerce | A grant toward the cost of a home solar system, plus a new energy storage adder. | Open, limited funding | Official source |
| South Carolina | Santee Cooper EmpowerSolar Solar Home rebate | Santee Cooper pays $950 per kW, up to $5,700, for a rooftop solar system. | Open | Official source |
| Texas | Austin Energy solar rebate | $4,000 for qualifying home projects | Open | Official source |
| Washington D.C. | Solar for All single-family rooftop solar (DOEE/DCSEU) | Qualifying low-income homeowners receive a net-metered rooftop solar system at no cost. | Waitlist only | Official source |
| Wisconsin | Focus on Energy residential solar rebate | Single-family homes get $600 per kW, up to $2,400. | Open | Official source |
State tax credits
At tax timeA state credit lowers the state income tax you owe. It does not lower the invoice. If your tax bill is small, the rules on refunds and carryforward decide how fast you get the value.
New York gives a credit of 25% of qualified costs, up to $5,000, for eligible equipment at your main home in the state. It is not refundable, but unused credit carries forward for up to five years. Qualifying leases and power purchase agreements (PPAs) can also count.
Source: NY Department of Taxation and Finance, checked September 28, 2026.
Tax credits by state8 states
| State | Program | Benefit | Status | Source |
|---|---|---|---|---|
| Arizona | Arizona Residential Solar Energy Credit (A.R.S. 43-1083) | State income-tax credit of 25% of the solar device cost, up to $1,000. | Open | Official source |
| Colorado | Colorado home battery tax credit (10%) | State income tax credit of 10% of the battery purchase price (equipment, sales tax and freight, not installation labor or permit fees), which you can claim yourself or assign to the seller at purchase in exchange for the full credit value. | Open | Official source |
| Hawaii | Renewable Energy Technologies Income Tax Credit (HRS 235-12.5) | A state income tax credit of 35% of the actual cost of a solar system, capped at $5,000 per system on a single-family home. | Open | Official source |
| Idaho | Idaho residential alternative energy device deduction (Idaho Code 63-3022C) | An income tax deduction of 40% of the solar cost in the first year and 20% a year for the next three years, capped at $5,000 of deduction in any one year. | Open | Official source |
| Massachusetts | Massachusetts residential renewable energy income tax credit (M.G.L. c.62 §6(d)) | Takes 15% of net system cost off state income tax, up to $1,000. | Open | Official source |
| New Mexico | New Solar Market Development Tax Credit (NSMDTC) | State income-tax credit of 10% of equipment, materials and labor costs, up to $6,000 per taxpayer. | Open, limited funding | Official source |
| New York | Solar energy system equipment credit | 25% of qualified costs, up to $5,000 | Open | Official source |
| South Carolina | Solar Energy Tax Credit (S.C. Code 12-6-3587) | State income tax credit of 25% of the cost of buying and installing a solar system. | Open | Official source |
Sales and property tax breaks
At purchaseOver timeA sales tax exemption removes sales tax from qualifying equipment. It applies to eligible items, not always the whole installed price. If your quote already leaves out sales tax, do not subtract it again.
A property tax exclusion keeps the value that solar adds out of your home’s tax assessment. It does not freeze your property tax or exempt the whole home.
Vermont exempts qualifying equipment for renewable systems from its 6% sales tax. If $25,000 of otherwise taxable purchases qualified, you would avoid $1,500 of state sales tax. Florida excludes the value of qualifying home renewable-energy devices when it assesses residential property.
Sources: 32 V.S.A. §9741(46), Florida Statutes §193.624, checked September 28, 2026. The $25,000 figure is an illustration.
Sales and property tax breaks by state32 states
| State | Program | Benefit | Status | Source |
|---|---|---|---|---|
| Arizona | Solar equipment sales-tax (TPT) deduction (A.R.S. 42-5061(M)) and property-tax exclusion (A.R.S. 42-11054) | Solar equipment sales are deducted from the retail sales tax base, and a grid-tied PV system adds no value for property-tax assessment. | Open | Official source |
| California | Property tax exclusion for solar (R&T Code §73) | The value solar adds is not counted when your home is reassessed | Open | Official source |
| Colorado | State sales and use tax exemption (C.R.S. 39-26-724) | No state sales or use tax on solar panels, inverters, racking and wiring | Open | Official source |
| Colorado | Colorado solar property tax exemption | Solar equipment on a home is exempt from property tax, whether you own it or a company owns it. | Open | Official source |
| Connecticut | Sales and use tax exemption for solar electric systems (CGS 12-412(117)(A)) | Solar electric systems, related equipment and installation services are exempt from Connecticut's sales and use tax. | Open | Law text (copy) |
| Connecticut | Property tax exemption for residential renewable systems (CGS 12-81(57)) | A solar system installed for private residential use is exempt from local property tax. | Open | Law text (copy) |
| Florida | Property tax exclusion for renewable devices | Solar’s added value is left out of your home’s assessment | Open | Official source |
| Florida | Sales and use tax exemption for solar energy systems (Fla. Stat. 212.08(7)(hh)) | Solar energy systems and their components, including inverters and batteries, are exempt from Florida sales and use tax. | Open | Official source |
| Iowa | Solar energy equipment sales tax exemption | Panels, inverters, solar roof tiles or shingles, and transmission equipment are exempt from Iowa sales tax. | Open | Official source |
| Iowa | Solar property tax valuation exclusion | Installing solar does not raise the property's taxable value for five full assessment years, and any market value the system adds to a building is never assessed. | Open | Official source |
| Kansas | Renewable energy property tax exemption (K.S.A. 79-201 Eleventh) | Property used mainly to generate electricity from solar is exempt from property tax for 10 taxable years after installation. | Open | Official source |
| Louisiana | Solar energy system property-tax exemption (La. R.S. 47:1706) | Solar equipment on an owner-occupied home is exempt from property tax, and assessors must not count its value. | Open | Official source |
| Maine | Solar equipment property-tax exemption (36 M.R.S. §655(1)(V)) | Qualifying solar equipment is exempt from local property tax. | Open | Official source |
| Maryland | Solar equipment sales and use tax exemption (Tax-General §11-230) | Solar equipment is exempt from Maryland's sales and use tax. | Open | Official source |
| Maryland | Solar energy property tax exemption (Tax-Property §7-242) | Solar energy equipment is not subject to real property tax. | Open | Official source |
| Massachusetts | Solar equipment sales tax exemption (M.G.L. c.64H §6(dd)) | Solar equipment for your principal residence is exempt from state sales tax. | Open | Official source |
| Michigan | Property tax: residential alternative energy system treated as normal maintenance (MCL 211.27(2), PA 116-118 of 2019) | Installing a qualifying home solar system does not raise the home's assessed true cash value until the property is sold. | Open | Official source |
| Minnesota | Sales tax exemption for solar energy systems (Minn. Stat. 297A.67, subd. 29) | Solar energy systems are exempt from Minnesota sales tax. | Open | Official source |
| Minnesota | Minnesota solar property tax exemption | The solar energy generating system is exempt from property tax as personal property, and the land under a home system is classified without regard to the system. | Open | Official source |
| Missouri | Missouri solar sales tax exemption (installer purchases) | Your installer buys the panels, inverters, racking and other system components free of 100% of Missouri state and local sales and use tax, so that tax is not built into your price. | Open | Official source |
| Montana | Nonfossil energy property tax exemption (MCA 15-6-224) | Up to $20,000 of a home solar system's appraised value is exempt from property tax. | Open | Official source |
| Nevada | Nevada solar property tax exemption | Exempts 100% of a qualified solar system from property tax, so the panels do not add to the home's taxable value. | Open | Official source |
| New Hampshire | Local solar property tax exemption (RSA 72:62) | Towns that adopt it exempt solar from property tax assessment. | Open | Official source |
| New Jersey | Sales tax exemption for solar energy systems (N.J.S.A. 54:32B-8.33) | Solar equipment, including storage devices for solar power, is exempt from NJ sales and use tax. | Open | Law text (copy) |
| New Jersey | Property tax exemption for renewable energy systems (N.J.S.A. 54:4-3.113b) | The value a certified solar system adds to a home is excluded from its assessed value each year. | Open | Law text (copy) |
| New Mexico | Gross receipts tax deduction for solar energy systems (NMSA 7-9-112) | Receipts from selling and installing a solar system, including its storage components, can be deducted from gross receipts, so no gross receipts tax is charged on them. | Open | Official source |
| New Mexico | Solar excluded from residential valuation increase (NMSA 7-36-21.2) | Installing solar does not count as a physical improvement that can raise a home's capped property tax valuation. | Open | Law text (copy) |
| New York | Residential solar sales tax exemption (Tax Law 1115(ee)) | Buying and installing residential solar equipment is exempt from the 4% state sales tax and the 3/8% MCTD tax, and from local sales tax where the locality has adopted the exemption. | Open | Official source |
| New York | RPTL 487 property tax exemption | The increase in property value from a solar system (or energy storage) is exempt from property tax for 15 years. | Open | Official source |
| North Carolina | Property tax exclusion for solar (G.S. 105-275(45)) | 80% of the solar system’s appraised value is excluded from property tax | Open | Official source |
| North Dakota | Solar, wind or geothermal device property tax exemption (NDCC 57-02-08(27)) | Solar equipment on a building is exempt from property tax for five years after installation. | Open | Official source |
| Ohio | Ohio property-tax exemption for small energy facilities (ORC 5709.53) | Solar panels and related fixtures on a system of 250 kW or less are exempt from property tax. | Open | Official source |
| Puerto Rico | Puerto Rico solar equipment property tax exemption | Exempts 100% of qualifying solar and renewable energy equipment from Puerto Rico property tax on real and personal property, so the equipment adds no taxable value. | Open | Official source |
| Rhode Island | Sales tax exemption for renewable energy equipment (R.I. Gen. Laws 44-18-30(57)) | Solar panels, inverters and mounting racks are exempt from state sales tax. | Open | Official source |
| South Dakota | Renewable energy property tax exemption (SDCL 10-4-44) | Part of the assessed value added by a solar system is exempt from real property tax. | Open | Official source |
| Tennessee | Tennessee sales tax exemption for certified solar | Removes 100% of Tennessee sales and use tax on the machinery and equipment that produce or store the electricity, through tax-free purchases with an exemption certificate or a credit or refund of tax already paid. | Open | Official source |
| Texas | Texas property tax exemption for solar devices (Tax Code 11.27) | Value that solar adds to a home is exempt from property tax. | Open | Official source |
| Vermont | Sales tax exemption for renewable systems | No 6% state sales tax on qualifying equipment | Open | Official source |
| Vermont | Vermont property tax exemption for small solar (32 V.S.A. 3802(17)) | Net-metered solar systems under 50 kW are exempt from property tax, but the land is not. | Open | Official source |
| Virginia | Property tax exemption for solar up to 25 kW (Va. Code § 58.1-3661) | A solar facility of 25 kW DC or less installed under § 15.2-2288.7 A or B is fully exempt from state and local property tax. | Open | Official source |
| Washington | Sales and use tax exemption for solar systems up to 100 kW (RCW 82.08.962 / 82.12.962) | Solar equipment and installation labor are exempt from 100% of state and local sales tax. | Open | Official source |
| Wisconsin | Sales and use tax exemption (Wis. Stat. 77.54(56)) | Solar products that produce at least 200 watts are exempt from sales and use tax. | Open | Official source |
| Wisconsin | Property tax exemption (Wis. Stat. 70.111(18)) | Solar energy systems are exempt from general property tax. | Open | Official source |
Export credits (net metering)
Over timeWhen your panels make more power than your home uses, the extra goes to the grid. Your utility credits you for it. Under full retail net metering, one kilowatt-hour (kWh) sent out offsets one kWh bought. Many utilities now pay less than that, through net billing or a newer successor tariff. Fixed monthly charges usually stay on your bill.
New ComEd home customers from January 1, 2025 get credits against the supply part of the bill only. Delivery and meter charges remain. Before you estimate savings, check your utility’s credit rate and what happens to unused credits.
Source: ComEd net metering FAQ (PDF), pages 1–2, checked September 28, 2026.
Export rules by state52
Full retail net metering (25): Alaska, Colorado, Delaware, Florida, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, Virginia, Washington, Washington D.C., Wyoming
Successor tariff (9): California, Connecticut, Hawaii, Illinois, Iowa, Nevada, New Hampshire, South Carolina, Vermont
Net billing (11): Arizona, Arkansas, Georgia, Idaho, Indiana, Kentucky, Louisiana, Michigan, Mississippi, Utah, West Virginia
Varies by utility or retailer (4): North Carolina, North Dakota, Texas, Wisconsin
No net metering (3): Alabama, South Dakota, Tennessee
Rule for new customers at each state’s main utilities. Older customers, co-ops and city utilities can differ.
Production payments and SRECs
Over timeSome states pay for the solar power you produce. Often this works through solar renewable energy certificates (SRECs): one certificate for every 1,000 kWh. Your contract decides whether you, your installer or a leasing company receives them.
New Jersey (ADI program): $77 per certificate for home registrations received on or after July 27, 2026, for 15 years. A system making 8,000 kWh in a year would earn about 8 × $77 = $616 that year, if you keep the certificates. Registration closes when capacity fills or on June 1, 2027.
Massachusetts (SMART 3.0): $0.03 per kWh for eligible home systems up to 25 kW AC, or $0.06 for qualifying low-income systems, for 20 years. It is for Eversource, National Grid and Unitil customers.
Sources: NJ Clean Energy Program, Mass. DOER, checked September 28, 2026. The 8,000 kWh figure is an illustration, not a forecast.
Production payments and SRECs by state8 states
| State | Program | Benefit | Status | Source |
|---|---|---|---|---|
| Illinois | Illinois Shines (Adjustable Block Program), Small DG | Your utility buys 15 years of the system’s renewable energy credits: $80.77 per REC in ComEd territory or $70.37 in Ameren territory for systems up to 10 kW (2026-27), plus $20 per REC for customer-owned systems. | Open | Official source |
| Massachusetts | SMART 3.0 | $0.03 per kWh ($0.06 for qualifying low-income systems), for 20 years | Open | Official source |
| Minnesota | Xcel Energy Solar*Rewards production incentive (Minn. Stat. 116C.7792) | Xcel customers with a qualifying system receive a per-kWh production incentive paid for 10 years. | Open, limited funding | Official source |
| New Jersey | ADI program (SREC-IIs) | $77 per MWh for home registrations from July 27, 2026, for 15 years | Open | Official source |
| Pennsylvania | Pennsylvania AEPS solar alternative energy credits (SRECs) | Each 1,000 kWh your system produces earns one solar credit you can sell; the PUC reports a 2024/2025 weighted average of $33.20. | Open | Official source |
| Rhode Island | Renewable Energy Growth (RE Growth) Program, Small-Scale Solar | Rhode Island Energy pays a fixed 31.55 or 28.65 cents per kWh of solar output for 15 or 20 years, depending on system size and term. | Open, limited funding | Official source |
| Tennessee | TVA Dispersed Power Production (through local power companies) | Lets a homeowner sell excess solar power to TVA through the local power company. | Open | Official source |
| Washington D.C. | DC solar renewable energy certificates (SRECs) | Owners of registered DC solar systems can sell SRECs to electricity suppliers, whose penalty for falling short on solar is $0.44/kWh ($440/MWh) in 2026. | Open | Official source |
Battery programs
At purchaseOver timeBattery help comes in two forms. An upfront rebate lowers the battery price. A participation program pays you over time for letting the utility draw on your battery during peak demand. Ask how often the utility can use it, how much charge you keep for outages, and which batteries are on the approved list.
California (SGIP): the equity budget pays $1.10 per Wh of battery storage, plus $3.10 per W of paired solar, for income-qualified homeowners. All of its money is reserved, so new applications join a waitlist. The other SGIP budgets are closed.
North Carolina (Duke Energy PowerPair): one-time incentives of up to $9,000 for solar plus a battery, installed by a Duke Trade Ally. Capacity is capped, enrollment is first come, first served, and you must apply within 90 days after the system starts working.
Sources: SGIP administrator (Center for Sustainable Energy), Duke Energy, checked September 29, 2026.
Battery programs by state14 states
State | Program | Benefit | Status | Source |
|---|---|---|---|---|
APS Storage Rewards (battery pilot) | APS residential customers earn $110 per average kW their battery supplies during conservation events in the season. | Open | ||
SGIP battery rebate, Residential Solar and Storage Equity budget | $1.10 per Wh of battery storage, plus $3.10 per W of solar paired with it | Waitlist only | ||
Energy Storage Solutions (home battery incentive) | From April 1, 2026, new residential participants get an enrollment incentive of $30/kWh ($130/kWh on grid-edge circuits) plus a performance payment of $300 to $550 per kW-year for 10 years. | Open | ||
Hawaiian Electric Bring Your Own Device Plus (BYOD Plus) | An upfront payment of $400 per kW of committed battery capacity, plus an extra $400 per kW for low-to-moderate income households and a monthly export credit. | Open | ||
Entergy Louisiana home battery rewards | Pays $125 per kW of average battery output during peak events each year, up to $600 a year, plus a one-time $75 per kWh of capacity, up to $1,000, for a new battery enrolled within one year of installation. | Open | ||
Efficiency Maine Small Battery Program | Your battery maker pays you each year for power your battery shares during peak events. | Open | ||
Eversource NH home battery incentive | One-time incentive of $230 per kWh of battery capacity, up to $3,000, paid by check after the battery is accepted into demand response, with no yearly performance payments. | Open | ||
Duke Energy PowerPair (solar + battery) | One-time incentives up to $9,000, based on the equipment installed | Open, limited funding | ||
Energy Trust of Oregon battery storage incentive | PGE customers get $400 per kWh up to $5,000. Pacific Power customers get $240 per kWh up to $3,000 from October 1, 2026. | Open, limited funding | ||
PGE Smart Battery pilot | Bill credits of $1.70 per kWh your battery provides during each PGE peak event. | Open | ||
PECO Flex & Save battery program | Pays $80 per kW of average battery output during events in each summer and winter season. | Open, limited funding | ||
Customer Battery Energy Sharing (CBES), LUMA | Your aggregator pays you for energy your battery sends to the grid during CBES events. | Open | ||
Austin Energy Power Partner battery program | Pays $75 per kW of average battery output during up to 40 events a year, about $324 a year for a Tesla Powerwall in Austin Energy's example, plus a one-time $500 rebate for each battery that got Permission to Operate on or after February 18, 2025. | Open | ||
Rocky Mountain Power Wattsmart Battery program | Rocky Mountain Power pays $1,000 upfront for a battery under 10 kW or $2,000 for 10 kW or larger, then yearly bill credits. | Open | ||
PSE Flex Batteries battery payments | One-time payment of $75 per kWh of battery capacity, up to $1,000 per battery, plus $0.50 per kWh the battery discharges in Flex events, up to $500 per battery a year, and income-qualified or grid-reliability customers can also get up to $10,000 or $5,000 off the upfront cost. | Open |
Who can qualify for solar incentives?
Each program has its own rules. Five things decide most of them:
- Who owns the systemBuying with cash or a loan usually gives you the incentives. With a lease or PPA, the contract decides.
- Which utility serves youRebates and export credits often depend on your utility, not only your state. A ZIP code alone may not tell you which one.
- Your household and taxesSome programs are for income-qualified households. Tax credits only help if you owe enough tax, or if unused credit carries forward.
- Equipment and installerMany programs require approved equipment, a minimum system size or a participating installer.
- TimingSome programs need approval before you sign or install. Others close when funding or capacity runs out.
If you buy the system
You pay for it with cash or a loan, and you own it. You are usually the one who claims tax credits, rebates and production payments. Check any rules on the loan itself.
If you lease or sign a PPA
A company owns the panels. It may receive some incentives and reflect them in your rate. Ask which incentives the company keeps and which, if any, pass to you.
If you rent or have a lower income
Some states and utilities run income-qualified programs or community solar. The rules are local. Check your state guide or your state energy office, and read the conditions of any “free solar” offer.
When incentives are unlikely to help you much
Be careful with any quote that assumes these incentives in the situations below.
- You lease or sign a PPA. The company that owns the panels usually gets the tax credits and certificates. You get only what your contract passes on to you.
- You owe little state income tax. A non-refundable state credit only pays as fast as your tax bill can absorb it. Unused credit can expire when its carryforward period ends.
- You rent your home. The owner of the building usually controls the roof and the incentives. Community solar may be the only option.
- Your state has no net metering and few programs. Tennessee, South Dakota and Alabama have no statewide net metering. There, savings come mostly from power you use yourself.
- The program is closed, full or on a waitlist. Do not count it until you have a reservation or approval in writing.
- You signed or installed before approval. Some rebates, such as Austin Energy’s, need approval before installation and cannot be claimed after.
How much can incentives reduce your solar cost?
It depends on your programs, so there is no honest national number. What we can show is how the money arrives. Here is one example using New York’s real tax-credit rule.
No rebate is assumed here. A confirmed rebate would lower this amount. No federal credit applies to a 2026 system.
25% of $25,000 is $6,250, so the $5,000 cap applies. If your state tax is lower, the rest carries forward for up to five years.
Export credits lower your bills for years. They depend on your utility, so they are not in the total.
The math: min($25,000 × 25%, $5,000) = $5,000. This assumes an owner-bought system with $25,000 of qualifying costs. It leaves out financing and other programs. It does not apply to lease or PPA payments.
Check your quote for these two errors. A 2026 quote that subtracts a 30% federal credit is out of date. A quote that subtracts a sales tax exemption when the price already excludes sales tax counts the same saving twice.
Ask local installers which programs fit your home
Installers can check which programs your utility runs today and show which ones their price includes.
We ask about your home first, then your contact details. EcoGen may share your request with installer partners and quote services, who may contact you. We may be paid for this. How we make money
- Free to requestYou are never obliged to sign.
- Ask about incentivesAsk each installer which programs the price includes, and who applies.
- Not an eligibility checkOnly the program administrator can confirm you qualify.
How to apply without missing a deadline
Most lost incentives are lost on timing. Do these four steps in order.
List the programs that fit you
Start with your state guide. Then check your utility’s website and your city or county.
- Who
- You
- Keep
- Program names, links and the date you checked
Get approval before you sign or install
If a program needs a reservation or pre-approval, get it in writing first. Check that your equipment and installer are on its list. Approval can take weeks, so start early.
- Who
- Usually your installer, with your signature
- Keep
- The approval or reservation letter
Agree in the contract who files what
Write down who applies for each rebate or certificate, and who receives the money.
- Who
- You and your installer
- Keep
- The signed contract with incentives listed
Keep proof and track payment
Save invoices, the interconnection approval and the date the system started working. You may need them for tax credits. Payment can come months after installation, so do not plan on a date until you have it in writing.
- Who
- You
- Keep
- Invoices, permission-to-operate letter, tax forms
What happened to the federal solar tax credit?
The federal Residential Clean Energy Credit gave 30% of qualifying costs for home solar installed from 2022 through 2025. It is not available for property placed in service after December 31, 2025. New home systems in 2026 do not get it.
For the full rules, deadlines and carryforward, see our federal solar tax credit guide. This ended the homeowner credit only. Companies that own leased systems may have business tax rules of their own, so ask a lease or PPA provider how that affects your rate.
If your system was installed by December 31, 2025
- You may still claim the credit for that year, subject to the IRS rules.
- Unused credit can carry forward to later tax years.
- The home could be one you owned or rented, according to the IRS.
- A qualifying battery of at least 3 kWh could count even without new solar (2023–2025).
- Some utility payments and rebates can lower the costs that count toward the credit.
Example: $25,000 of qualifying costs gave a $7,500 credit. If you owed only $5,000 of tax that year, $2,500 could carry forward. Check with a tax professional for your own return.
Sources: IRS Residential Clean Energy Credit, Form 5695 instructions.
Solar incentive FAQs
Can I still get the 30% federal solar tax credit in 2026?
Not for a new home system. The federal credit does not apply to property placed in service after December 31, 2025. If your system was installed by that date, you may still claim it for that year, and unused credit can carry forward to later returns (IRS).
Which solar incentives are available in my state and utility area?
Use the state finder at the top of this page, then open your state guide. Many rebates and export credits depend on your utility, so check your utility’s website too. Only the program administrator can confirm you qualify. You do not need to sign up to read any of this.
Can I combine a rebate with a state tax credit?
Often, but not always. Each program sets its own rules, and a rebate can lower the cost a tax credit is based on. Check both programs’ rules before you add the amounts together.
Do incentives reduce my upfront payment or pay me later?
It depends on the type. Rebates and sales tax exemptions lower what you pay at purchase. Tax credits help when you file your taxes. Export credits and production payments add up over years.
Do I need to apply before signing a contract or installing panels?
For some programs, yes. Some rebates need a reservation or confirmation letter before installation, and some need approved equipment or a participating installer. There is no single national deadline, so check each program first.
Who receives incentives if I use a solar loan, lease or PPA?
With a loan, you own the system and usually claim the incentives. With a lease or power purchase agreement (PPA), a company owns the panels, and the contract decides who receives each incentive. Some state programs, such as New York’s credit, can also cover qualifying leases and PPAs.
Are there solar programs for low-income households or renters?
Some states and utilities run income-qualified programs or community solar that renters can join. The rules and funding are local. Check your state guide and your state energy office, and read the conditions of any “free solar” offer.
Are batteries eligible for separate rebates or utility payments?
In some areas. A battery rebate lowers the price you pay. A participation program pays you over time for letting the utility use your battery at peak times. Check the approved equipment list and how often the utility can use your battery.
What happens if I cannot use my entire tax credit?
It depends on the credit. Unused federal credit from a qualifying 2025 or earlier system can carry forward. State credits have their own rules: New York’s, for example, carries forward for up to five years. Some state credits are lost if you cannot use them.
What if a rebate program closes or runs out of funding?
A rebate is only certain once it is reserved or approved in writing. If a program is closed or on a waitlist, a quote should not subtract that rebate. Ask your installer to show the price both with and without it.
Get quotes that show their incentive assumptions
Enter your ZIP code. Then ask each installer to list every program in the price and its current status.
EcoGen may share your request with installer partners and quote services, who may contact you. How we make money
- Home questions firstName, email and phone come last.
- Compare more than priceCheck which incentives each quote assumes.
Next steps for your solar decision
How we checked this guide
- Each program example links to its official administrator.
- Every program shows the date we checked it.
- We may be paid when you request installer quotes.
- Payment does not decide which programs we list.
Sources and references (13)
- IRS, Residential Clean Energy Credit: irs.gov
- IRS, Instructions for Form 5695: irs.gov
- NY Department of Taxation and Finance, Solar energy system equipment credit: tax.ny.gov
- ComEd, Net Metering FAQ (2026): comed.com
- NJ Clean Energy Program, ADI program: cleanenergy.nj.gov
- Massachusetts DOER, SMART 3.0 program details: mass.gov
- Vermont Statutes, 32 V.S.A. §9741(46): legislature.vermont.gov
- Vermont Department of Taxes, 6% sales tax ruling: tax.vermont.gov
- Florida Statutes §193.624: leg.state.fl.us
- Austin Energy, Solar for your home: austinenergy.com
- SGIP budget status, Center for Sustainable Energy: sgipsd.org
- Duke Energy, PowerPair: duke-energy.com
- EcoGen Solar Database, state export-credit rules (sources retrieved June 2026): ecogenamerica.com
