Solar Incentives by State: 2026 Complete Guide

The 30% Federal Solar Tax Credit is available nationwide, but state-level incentives can stack on top — reducing your net cost by an additional 10–25%. Here's what's available.

States With Tax Credits

Arizona

• State tax credit: 25% of system cost, up to $1,000
• Property tax exemption: Yes
• Net metering: Available (net billing for some utilities)

New York

• State tax credit: 25% of system cost, up to $5,000
• NY-Sun incentive: Varies by region and system size
• Property tax exemption: Yes
• Net metering: Yes

New Mexico

• State tax credit: 10% of system cost, up to $6,000
• Property tax exemption: Yes
• Net metering: Yes

Iowa

• State tax credit: 50% of the federal credit amount (up to $5,000)
• Property tax exemption: Yes
• Net metering: Yes

Utah

• State tax credit: Up to $1,600 (phasing down)
• Property tax exemption: Yes
• Net metering: Yes

South Carolina

• State tax credit: 25% of system cost, up to $3,500
• Property tax exemption: Yes
• Net metering: Yes

Massachusetts

• SMART program: Performance-based incentive paid per kWh produced
• Property tax exemption: Yes
• Net metering: Yes

States With SREC Markets

Solar Renewable Energy Certificates (SRECs) represent the environmental benefit of your solar production. You earn one SREC for every 1,000 kWh your system produces and can sell them for additional income.

Active SREC markets:

• New Jersey: SREC-II program, ~$70–$100/SREC
• Pennsylvania: ~$5–$10/SREC
• Massachusetts: SMART program (performance-based, not traditional SREC)
• Maryland: ~$5–$15/SREC
• Ohio: ~$5–$10/SREC
• Illinois: Illinois Shines program
• Washington DC: ~$300–$400/SREC (highest in the nation)

States With Cash Rebates

Colorado

• Xcel Energy Solar*Rewards: Performance-based incentive
• Property tax exemption: Yes
• Net metering: Yes (retail rate)

Oregon

• Energy Trust cash incentive: $0.20–$0.40/W
• Property tax exemption: Yes
• Net metering: Yes

Wisconsin

• Focus on Energy rebate: Up to $500–$1,000
• Property tax exemption: Yes
• Net metering: Yes

Maryland

• State grant: Up to $5,000
• SREC market: Active
• Property tax exemption: Yes
• Net metering: Yes

States With Property Tax Exemptions

Most states don't increase your property taxes when you install solar, even though solar increases your home value. States with property tax exemptions include: Arizona, California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Texas, Virginia, and Wisconsin.

States With Sales Tax Exemptions

Some states exempt solar equipment from sales tax:

• Florida: 100% sales tax exemption
• Washington: 100% sales tax exemption (up to $5,000)
• New York: 100% sales tax exemption
• New Jersey: 100% sales tax exemption
• Massachusetts: 100% sales tax exemption

How to Stack Incentives

The best strategy is to claim every incentive you're eligible for:

1. Federal ITC: 30% of system cost
2. State tax credit: Varies by state
3. Utility rebate: Check with your provider
4. SREC income: If your state has a market
5. Property tax exemption: Automatic in qualifying states
6. Sales tax exemption: Automatic at purchase

This can reduce your total net cost by 40–55% or more.

Find Your State's Incentives

Browse our state solar guides for detailed incentive information for your state. Then run our free AI Home Energy Advisor for a personalized analysis that factors in your specific incentives and utility provider.