The United States pays roughly $95 Billion in tax credits for solar cell systems annually. In addition, many state and local governments offer solar incentives to help make your life easier. However, these solar panel incentives within each state differ, and you may find one or two that need incentives.
Which states lead for solar incentives offerings?
1️⃣ Alabama has property tax exemption and net metering.
2️⃣ Texas has the most incentives, as they have over 12 different types of solar incentives.
3️⃣ New York also has several incentive types that you can claim.
🏛️ Types of Solar Incentives by State
Solar incentives differ from state to state. So while you may have many different ones in your state, some state governments might not offer any incentives for that state tax credit you seek.
Alabama has a property tax exemption for a solar system, which helps you with the cost.
This exemption will also help your taxes to remain stable for a few years. And it will increase the value of your home.
Alabama also has net metering, which allows you to use the unused solar renewable energy of your solar system on your next electric bill or use it as credit.
Inflation reduction acts are available in Arizona. Depending on your system’s cost, you can claim up to 30% of your federal tax credit.
Arizona also offers a tax exemption for your solar equipment, which allows you to get a reduction on your solar equipment when you buy it.
Arkansas has net metering and a federal solar investment tax. The federal solar investment tax allows you to get a discount on your next federal tax return.
The net metering in Arkansas is better than in some other states, and the state also ensures the companies uphold their program deals to the residents.
Solar property tax exclusion is valuable in California. Anyone who installs solar panels or other devices for their solar power system to their property will not have to pay property taxes equal to the increase in property value caused by the addition of the system.
They also have net metering programs of three types: Pacific gas and electric, Southern California Edison, and San Diego gas and electric.
⚠️ Update: California has recently updated its policy to Net Metering 3.0, so residents should be aware of the reduction coming into effect.
Colorado has net metering incentives and solar property tax exemptions like many other states.
Cash rebates allow you to get a refund after fully paying for your system. Colorado is one of the states who have better-paying incentives for its residents. And cash rebates are also available for the residents of this state.
Connecticut’s Green Bank Residential Solar Investment Program offers an upfront cost reduction based on your solar energy system size.
Connecticut also has inflation reduction acts and property tax exemptions for renewable energy systems.
If you are a customer of Delmarva Power, you can get a green energy grant which pays you to go solar. They pay you $700 per kilowatt.
Georgia has city and utility rebates which are incentives the municipalities and local utility companies provide to the residents.
Hawaii has the Honolulu solar property tax exemption, an exemption for the increased worth of your home due to solar roof systems.
They also have the green energy money saver program. It’s where the state will cover 35% of the purchased solar system on the tax credits.
Kentucky has several solar incentives, including net metering and property tax.
They also have Cumberland Valley electric, where the customers can access the rebates, which range from $50 to over $1300, for their energy-efficient upgrades to their homes.
Kentucky also has property-assessed clean energy programs in which the government offers the residents financing for their home upgrades.
Montana offers residents residential clean energy credit, a 30% credit to consumers who buy and install solar energy systems from 2022 to 2032.
They also have the Residential Alternative Energy System Tax Credit, a personal tax. It gives $500 for individuals and $1000 for married couples with a green energy source when you install solar.
New Mexico has a solar installation sales tax exemption which allows for a 5.125% solar system sales tax exemption.
They also have a new solar development income tax credit. For example, in New Mexico, you can buy systems for your home and get a 10% credit from the state, which is a max $6000 tax reduction.
New Mexico offers sustainable building tax credits for newly built homes with solar panels.
New York is one of the states with more generous solar incentives than the majority of other states.
They have the inflation reduction act, the NY state solar equipment tax credit, and the NY-sun megawatt block program.
The NY-Sun Megawatt Block Program gives up to $1000 per kilowatt of solar power installed.
New York also has a Home Solar Project State Sales Tax Exemption. This incentive is a 4% solar panel system sales tax exemption. In addition, they also have the Solar Electric Generating System Tax Abatement.
💡 Suggested research: New York Solar Incentives
Rhode Island has a renewable energy fund offering up to $7000 for residents with small-scale solar arrays.
Tennessee has a sales tax exemption in which the cost of the system, when you install it, is exempted from all taxes. You save up to 8% of the system’s total cost this way.
Tennesee also has federal solar investment tax credits. It will give you 30% back on the total cost of your solar system.
Texas has your average federal solar tax credit and net metering. In addition to them, they also have a property tax exemption.
Texas also has energy home solar buyback plans in which the customers get paid for any excess energy the solar system creates. The program is similar to net metering in other states.
American electric power is where you can get a cash incentive if you’re a customer of a specific company. You can get back up to $8500 for the kilowatts of your system.
Solar Energy Devices Franchise Tax Exemption is where the state of Texas allows businesses to deduct the cost of the solar energy device from the business’s taxes.
Other incentives include the Property assessed clean energy and Oncor solar rebate. The Oncor solar rebate is where Oncor customers can access the solar rebate program. It can go up to $8,500 for the kilowatt of solar they have in their homes.
🥇 What Are The Top States For Solar Incentives?
The top states for solar incentives are California, New Mexico, and New York, with other states such as Colorado, Connecticut, and Minnesota also offering strong programs.
It’s important to check with your local government or utility company for the most up-to-date information on solar incentives in your area.
💵 Are There Any Solar Panel Incentives?
Yes, there are solar panel incentives available in many areas. These incentives can come in the form of rebates, tax credits, or other financial incentives that make it more affordable for homeowners and businesses to install solar panels.
Solar incentives vary by location and are subject to change, so it’s a good idea to check with your local government or utility company to see what options are available to you.
🔑 Key Takeaways
Solar incentives are an excellent way to encourage people to go solar and save energy. The state with the most incentives is Texas, where local solar users can benefit from their solar tax incentives. But other states like New York have better solar renewable energy credit incentives.
1️⃣ Solar incentives vary by state, so it’s possible that your state may offer a wide range of incentives while other states may not offer any at all. Check with your local government or utility company to see what incentives are available in your area.
2️⃣ After establishing an active incentive program, be sure to double-check any deadlines so that you don’t get caught out by any rule changes between the application and installation of your solar system.
Visit our solar tax credit hub for any other incentive and rebate questions you may have.