Solar Incentives, Tax Credits & Rebates in the USA
Federal and state governments want you to go solar. Between the 30% federal tax credit, state rebates, and net metering — your solar system pays for itself faster than you think.
Federal Solar Investment Tax Credit (ITC)
The most powerful solar incentive available. The federal ITC lets you deduct 30% of your total solar installation cost directly from your federal income taxes.
Example Savings:
Key Details:
- Credit amount: 30% of total installation cost
- Valid through: December 31, 2032 (reduces to 26% in 2033, 22% in 2034)
- Applies to: Panels, inverters, batteries (when paired with solar), labor, permits
- Carry forward: Unused credit rolls to future tax years
- Who qualifies: Homeowners, businesses, tax-paying entities
Net Metering
Net metering lets you send excess solar energy back to the grid and receive bill credits in return. When your panels produce more than you use (sunny days, when you're at work), that energy flows to your neighbors — and your utility credits your bill.
Solar panels produce energy
Your home uses what it needs
Excess goes to the grid = Bill credits
State Solar Incentives & Rebates
In addition to the 30% federal credit, many states offer their own incentives. Here are the top states for solar savings:
| State | State Tax Credit | Net Metering | Property Tax Exemption | Sales Tax Exemption | Notable Programs |
|---|---|---|---|---|---|
| California | N/A (use fed) | Yes (NEM 3.0) | Yes (100%) | Yes | SGIP Battery Rebate |
| Texas | N/A | Yes (varies) | Yes (100%) | Yes (equipment) | Oncor, AEP rebates |
| Florida | N/A | Yes | Yes (80%) | Yes | FPL, Duke rebates |
| Arizona | 25% (up to $1,000) | Yes | Yes | Yes | APS, SRP programs |
| New York | 25% (up to $5,000) | Yes | Yes | Yes | NY-Sun Incentive |
| Colorado | N/A | Yes | Yes | Yes | Xcel Energy rebates |
| Nevada | N/A | Yes | Yes | Yes | NV Energy programs |
| New Jersey | N/A | Yes | Yes | Yes | SREC-II program |
| Massachusetts | 15% (up to $1,000) | Yes | Yes | Yes | SMART program |
| North Carolina | N/A | Yes | Yes | Yes | Duke Energy rebates |
* Incentives change frequently. Contact us for the latest programs in your specific state and utility district.
Additional Solar Financial Benefits
Home Value Increase
Studies show solar panels increase home value by 3–4% on average. A $400,000 home could see $12,000–$16,000 in added value — and most states exempt this from property taxes.
SREC Programs
Solar Renewable Energy Certificates (SRECs) allow you to sell solar energy credits to utilities in states like NJ, OH, MA, MD, and DC. Earn $40–$300 per SREC per year.
Utility Cash Rebates
Many utility companies offer upfront cash rebates for solar installation — typically $300–$1,000 per kW. Check with your local utility for current availability.
Low-Interest Financing
PACE financing, solar loans, and green energy loans offer rates as low as 2.99%. Combine with the ITC and you may save money from day one with $0 down.
Calculate Your Total Incentive Savings
Our solar experts will calculate the exact incentives available in your state and show you your true net cost after all credits and rebates.