Which states have the best solar incentives?

Hawaii, New York, California, Arizona, Massachusetts, and New Mexico offer the strongest solar incentives combining state tax credits, net metering, and utility rebates.

How long is the payback period for solar?

After applying the 30% federal ITC and state incentives, the average payback period for a residential solar system ranges from 6 to 15 years depending on your state and electricity rates.

☀️ Federal 30% ITC — Available Through 2032

Find Every Solar Incentive in Your State

Q: What is the federal solar tax credit?

The federal Investment Tax Credit (ITC) lets you deduct 30% of your solar installation cost from your federal taxes. It's available through 2032 for US homeowners.

Federal tax credits, state rebates, and utility programs — all in one place.

Find My State Calculate Savings

30% Federal Investment Tax Credit

Available through 2032 for US homeowners

The ITC lets you deduct 30% of your solar installation cost from your federal taxes — dollar for dollar.

30%

of system cost

Learn More

States Covered

$15K+

Avg. Homeowner Savings

30%

Federal ITC Rate

How It Works

🔍

1. Find Your State Incentives

Browse our state pages to see all available federal, state, and utility incentives in your area.

🧮

2. Calculate Your Savings

Use our calculator to estimate your net cost after the 30% federal ITC plus state and utility incentives.

🏗️

3. Get Quotes from Installers

Request quotes from top-rated local installers and compare offers to get the best deal.

Top States by Solar Incentive Score

Types of Solar Incentives

Federal Investment Tax Credit (ITC)

The federal solar Investment Tax Credit (ITC) lets you deduct 30% of the cost of installing a solar energy system from your federal taxes. The credit applies to both residential and commercial systems, and there is no cap on its value.

30% of system cost

Solar Renewable Energy Certificates (SRECs)

SRECs are tradeable certificates that represent the environmental benefit of 1 megawatt-hour (MWh) of solar electricity generation. In SREC-eligible states, utilities must buy a portion of their electricity from renewable sources and purchase SRECs to prove compliance.

Varies by state market ($10–$300/SREC)

Net Metering

Net metering is a billing arrangement that allows solar homeowners to send excess electricity to the grid in exchange for credits on their utility bill. When your solar panels produce more electricity than you use, the surplus goes to the grid, and when you need more than you produce, you draw from the grid.

Credits at retail electricity rate (varies: $0.08–$0.35/kWh)

Utility Rebates

Many electric utilities offer cash rebates to customers who install solar energy systems. These programs help utilities meet renewable energy goals and reduce peak demand. Rebates are typically offered per watt of installed capacity or as a flat dollar amount.

$0.10–$0.50/watt or $500–$3,000 flat

Property Tax Exemption

Many states exempt the added value of a solar energy system from property tax assessments. Without this exemption, installing solar could increase your property taxes because it raises your home's assessed value.

Savings depend on local tax rate and system value

Sales Tax Exemption

Some states exempt solar equipment from state sales tax. This provides an immediate upfront discount on the purchase price of solar panels, inverters, and related equipment.

Varies by state sales tax rate (typically 4–8% of equipment cost)

Solar Incentives by State

Browse all 50 states ranked by total incentive value

Rank	State	State Credit	Net Metering	Sun Hours/Day	Payback (yrs)	Score	View
#1	HIHawaii	35%	✓	6	6	95	View
#2	CACalifornia	—	✓	5.5	8	92	View
#3	AZArizona	25%	✓	6.5	7	88	View
#4	NYNew York	25%	✓	4.1	8	88	View
#5	FLFlorida	—	✓	5.7	8	85	View
#6	MAMassachusetts	15%	✓	4.1	7	85	View
#7	NMNew Mexico	10%	✓	6.4	7	85	View
#8	TXTexas	—	✓	5.8	8	85	View
#9	NVNevada	—	✓	6.4	7	82	View
#10	NJNew Jersey	—	✓	4.3	8	80	View
#11	SCSouth Carolina	25%	✓	5.1	8	80	View
#12	COColorado	—	✓	5.4	9	78	View
#13	UTUtah	25%	✓	5.7	9	78	View
#14	ILIllinois	—	✓	4.3	9	75	View
#15	NCNorth Carolina	—	✓	5.2	9	75	View
#16	CTConnecticut	—	✓	4.1	10	72	View
#17	MDMaryland	—	✓	4.5	9	72	View
#18	RIRhode Island	—	✓	4.1	9	70	View
#19	DEDelaware	—	✓	4.2	10	68	View
#20	VTVermont	—	✓	4	9	68	View
#21	VAVirginia	—	✓	4.7	10	68	View
#22	IAIowa	15%	✓	4.5	10	65	View
#23	OROregon	—	✓	4	10	65	View
#24	PAPennsylvania	—	✓	4.2	10	65	View
#25	GAGeorgia	—	✓	5.2	11	62	View
#26	MNMinnesota	—	✓	4.5	11	62	View
#27	MEMaine	—	✓	4	11	60	View
#28	NHNew Hampshire	—	✓	4	11	60	View
#29	WAWashington	—	✓	4	11	60	View
#30	WIWisconsin	—	✓	4.4	11	60	View
#31	OHOhio	—	✓	4.2	11	58	View
#32	MIMichigan	—	✓	4	12	55	View
#33	TNTennessee	—	✓	4.9	12	55	View
#34	KSKansas	—	✓	5.1	12	52	View
#35	NENebraska	—	✓	5	12	52	View
#36	OKOklahoma	—	✓	5.4	12	52	View
#37	INIndiana	—	✓	4.4	12	50	View
#38	LALouisiana	—	✓	5.2	12	50	View
#39	MOMissouri	—	✓	4.7	12	50	View
#40	IDIdaho	—	✓	4.9	13	48	View
#41	MTMontana	—	✓	4.8	13	48	View
#42	ARArkansas	—	✓	4.8	13	45	View
#43	KYKentucky	—	✓	4.4	13	45	View
#44	ALAlabama	—	✓	4.7	14	42	View
#45	WVWest Virginia	—	✓	4.3	14	40	View
#46	NDNorth Dakota	—	✓	4.8	15	38	View
#47	SDSouth Dakota	—	✓	5	14	38	View
#48	MSMississippi	—	✗	5.1	15	35	View
#49	WYWyoming	—	✓	5.5	15	35	View
#50	AKAlaska	—	✓	3.1	18	30	View

Solar Savings Calculator

Estimate your net cost after all available incentives

System Cost ($)

Monthly Electric Bill ($)

Select State