Incentives
Solar incentives in 2026: what's changed, and what's left
The federal residential credit is gone, but state, utility and local programs can still cut thousands off your cost. Here's how to find them.
Federal update
The 30% federal Residential Clean Energy Credit (Section 25D) and the Energy Efficient Home Improvement Credit (Section 25C) ended for systems and equipment installed after December 31, 2025. Some leased solar and power purchase agreements may still benefit from business tax credits claimed by the system owner, subject to federal construction and in-service deadlines. Tax rules change, so confirm with a tax professional before you sign.
Still available
Types of incentives to look for
State tax credits
Some states let you subtract part of your solar cost from your state income tax bill.
Rebates
Cash back from your state, city or utility, paid per watt installed or as a flat amount.
Performance payments
SRECs and similar programs pay you for the clean energy your system produces, sometimes for years.
Net metering or net billing
Your utility credits you for extra power you send to the grid. Credit values vary widely by state.
Property tax exemptions
Many states do not raise your property taxes for the value solar adds to your home.
Sales tax exemptions
Some states waive sales tax on solar equipment, saving several percent off the price.
Battery and grid programs
Utilities increasingly pay battery owners to share stored power during peak demand.
Low-income programs
Income-qualified households may get free or deeply discounted solar or community solar.
Search every program by ZIP code in the DSIRE database, run by NC State University, or ask installers which ones they include in their quotes.
State-by-state
How solar stacks up in every state
Estimates for a 7 kW system at $3.00/W with no incentives, using average residential electricity rates and peak sun hours. Click a column to sort.
| Alabama | 15.5¢ | 4.9 | 10,016 | $1,552 | 11.8 yrs |
|---|---|---|---|---|---|
| Alaska | 25.0¢ | 3.0 | 6,132 | $1,533 | 11.9 yrs |
| Arizona | 15.0¢ | 6.5 | 13,286 | $1,993 | 9.5 yrs |
| Arkansas | 13.0¢ | 4.8 | 9,811 | $1,275 | 14.0 yrs |
| California | 32.0¢ | 5.8 | 11,855 | $3,794 | 5.2 yrs |
| Colorado | 15.5¢ | 5.5 | 11,242 | $1,743 | 10.7 yrs |
| Connecticut | 30.0¢ | 4.3 | 8,789 | $2,637 | 7.4 yrs |
| Delaware | 17.0¢ | 4.5 | 9,198 | $1,564 | 11.7 yrs |
| District of Columbia | 18.0¢ | 4.5 | 9,198 | $1,656 | 11.2 yrs |
| Florida | 15.5¢ | 5.2 | 10,629 | $1,647 | 11.2 yrs |
| Georgia | 15.0¢ | 4.9 | 10,016 | $1,502 | 12.1 yrs |
| Hawaii | 41.0¢ | 5.6 | 11,446 | $4,693 | 4.3 yrs |
| Idaho | 11.5¢ | 5.0 | 10,220 | $1,175 | 15.0 yrs |
| Illinois | 17.0¢ | 4.5 | 9,198 | $1,564 | 11.7 yrs |
| Indiana | 15.5¢ | 4.4 | 8,994 | $1,394 | 13.0 yrs |
| Iowa | 14.0¢ | 4.6 | 9,402 | $1,316 | 13.6 yrs |
| Kansas | 14.5¢ | 5.1 | 10,424 | $1,512 | 12.1 yrs |
| Kentucky | 13.5¢ | 4.5 | 9,198 | $1,242 | 14.3 yrs |
| Louisiana | 13.0¢ | 5.0 | 10,220 | $1,329 | 13.5 yrs |
| Maine | 28.0¢ | 4.2 | 8,585 | $2,404 | 8.0 yrs |
| Maryland | 19.0¢ | 4.5 | 9,198 | $1,748 | 10.6 yrs |
| Massachusetts | 30.0¢ | 4.3 | 8,789 | $2,637 | 7.4 yrs |
| Michigan | 19.5¢ | 4.1 | 8,380 | $1,634 | 11.3 yrs |
| Minnesota | 15.5¢ | 4.5 | 9,198 | $1,426 | 12.7 yrs |
| Mississippi | 14.0¢ | 4.9 | 10,016 | $1,402 | 12.9 yrs |
| Missouri | 13.5¢ | 4.8 | 9,811 | $1,325 | 13.5 yrs |
| Montana | 13.0¢ | 4.6 | 9,402 | $1,222 | 14.5 yrs |
| Nebraska | 12.0¢ | 4.9 | 10,016 | $1,202 | 14.7 yrs |
| Nevada | 15.0¢ | 6.4 | 13,082 | $1,962 | 9.6 yrs |
| New Hampshire | 25.0¢ | 4.2 | 8,585 | $2,146 | 8.9 yrs |
| New Jersey | 20.0¢ | 4.4 | 8,994 | $1,799 | 10.4 yrs |
| New Mexico | 15.0¢ | 6.4 | 13,082 | $1,962 | 9.6 yrs |
| New York | 25.0¢ | 4.1 | 8,380 | $2,095 | 9.1 yrs |
| North Carolina | 14.0¢ | 4.8 | 9,811 | $1,374 | 13.1 yrs |
| North Dakota | 11.5¢ | 4.6 | 9,402 | $1,081 | 16.0 yrs |
| Ohio | 16.5¢ | 4.2 | 8,585 | $1,416 | 12.8 yrs |
| Oklahoma | 13.0¢ | 5.3 | 10,833 | $1,408 | 12.8 yrs |
| Oregon | 14.5¢ | 4.3 | 8,789 | $1,274 | 14.0 yrs |
| Pennsylvania | 18.5¢ | 4.2 | 8,585 | $1,588 | 11.6 yrs |
| Rhode Island | 30.0¢ | 4.3 | 8,789 | $2,637 | 7.4 yrs |
| South Carolina | 15.0¢ | 5.0 | 10,220 | $1,533 | 11.9 yrs |
| South Dakota | 13.0¢ | 4.9 | 10,016 | $1,302 | 13.7 yrs |
| Tennessee | 13.0¢ | 4.7 | 9,607 | $1,249 | 14.2 yrs |
| Texas | 15.5¢ | 5.3 | 10,833 | $1,679 | 11.0 yrs |
| Utah | 12.5¢ | 5.6 | 11,446 | $1,431 | 12.7 yrs |
| Vermont | 22.0¢ | 4.0 | 8,176 | $1,799 | 10.4 yrs |
| Virginia | 15.0¢ | 4.6 | 9,402 | $1,410 | 12.8 yrs |
| Washington | 12.5¢ | 3.8 | 7,767 | $971 | 17.5 yrs |
| West Virginia | 15.0¢ | 4.2 | 8,585 | $1,288 | 13.9 yrs |
| Wisconsin | 18.0¢ | 4.3 | 8,789 | $1,582 | 11.6 yrs |
| Wyoming | 12.5¢ | 5.2 | 10,629 | $1,329 | 13.5 yrs |
Rates are rounded averages and change often. Your utility's actual rate plan and export rules decide your real savings.
Incentive questions
Do incentives apply to leased systems?
Usually the system owner, which is the leasing company, claims ownership-based incentives. Ask how they're passed on to you in a lower monthly price.
Will going solar raise my property taxes?
In many states, no. A large number of states exempt some or all of solar's added value from property tax.
Are there programs for low-income households?
Yes. Several states and utilities run income-qualified solar and community solar programs with free or discounted access.
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