The U.S. offers excellent solar incentives at both federal and state levels, including tax credits, rebates, and net metering programs. Here's everything you need to know to maximize your savings when going solar.
☀️ Federal Solar Incentives (Nationwide)
1. Solar Investment Tax Credit (ITC)
l 30% tax credit for residential and commercial solar systems (2022-2032)
l Drops to 26% in 2033 and 22% in 2034
l Applies to solar panels and battery storage
2. USDA Rural Energy for America Program (REAP)
l Covers up to 50% of costs (max $1 million) for rural farms/businesses
l Combines with the federal ITC for maximum savings
3. Commercial Solar Tax Benefits
l Bonus 10% credit for using U.S.-made equipment
l Accelerated depreciation (MACRS) for businesses
�� State-by-State Solar Incentives
California
✅ Net Metering (NEM 3.0) - Export credits at ~75% of retail rate
✅ SGIP Battery Incentive - Up to $1,000 per kWh for energy storage
✅ Property Tax Exclusion - Solar systems won't increase property taxes
New York
✅ NY-Sun Incentive - 0.20−0.50 per watt rebate (varies by region)
✅ Megawatt Block Program - Up to $1.75/watt for commercial solar
✅ 4% NYC Property Tax Abatement - Additional local savings
Texas
✅ Net Metering (Varies by Utility) - Some providers offer 1:1 credit
✅ Property Tax Exemption - Solar won't raise your property taxes
✅ Oncor Rebate - $0.50 per watt (select areas)
Florida
✅ Net Metering - Excess solar sold at wholesale rates
✅ Sales Tax Exemption - No sales tax on solar equipment
✅ Property Tax Exemption - Solar excluded from property valuation
Massachusetts
✅ SMART Program - 0.17−0.40 per kWh (10-year payments)
✅ Mass Save 0% Loans - Up to 50,000interest−free financing✅∗∗State Tax Credit∗∗−Additional 151,000)
Arizona
✅ APS/SRP Rebates - 500−1,000 cash back (utility-dependent)
✅ Net Metering - Some utilities offer full retail credit
New Jersey
✅ TREC Solar Credits - 90−220 per MWh generated
✅ Sales Tax Exemption - No sales tax on solar equipment
Colorado
✅ Xcel Energy Rebates - 0.25−0.50 per watt
✅ Net Metering - 1:1 credit for excess generation
Hawaii
✅ Battery Bonus Program - $850 per kWh for energy storage
✅ Net Metering - Retail rate credits for excess solar
Illinois
✅ Solar for All - Free solar for low-income households
✅ Adjustable Block Program - 0.03−0.10 per kWh (15 years)
💡Key Takeaways
✔ The 30% federal tax credit is the most valuable nationwide incentive
✔ California, New York, and Massachusetts offer the best state-level programs
✔ Texas and Florida have strong policies despite no state rebates
✔ Hawaii and California lead in battery storage incentives
💡Next Steps
1️⃣ Check your utility company's net metering policy
2️⃣ Apply for the federal ITC when filing taxes
3️⃣ Research state-specific programs through your energy office
�� Ready to Go Solar?
Which state's incentives surprised you most? Let us know in the comments! ⬇️