How to Use SolarRebateMap

Find solar rebates, tax credits, and incentives in your state — and get answers to the most common solar questions.

Getting Started

1

Find Your State

Click "Browse State Incentives" or use the navigation to go to your state page. Every state page lists all available federal, state, and utility incentives with current amounts and eligibility requirements.

2

Check Your Incentives

Review the full list of incentives available in your state — including the federal ITC, any state tax credits, utility rebates, net metering policies, SREC programs, and property/sales tax exemptions.

3

Calculate Your Savings

Use our solar savings calculator to estimate your net system cost after all incentives, your monthly savings, and your payback period. Enter your state, current monthly electricity bill, and estimated system size.

4

Find Installers

Browse our installer directory to find qualified solar installers in your area. Get at least 3 quotes and ask each installer to walk you through which incentives you qualify for.

Frequently Asked Questions

What is the federal solar tax credit?

The federal solar tax credit — officially called the Investment Tax Credit (ITC) — lets you deduct 30% of your solar system installation cost from your federal income taxes. For example, a $15,000 system generates a $4,500 tax credit. The 30% rate is locked in through 2032 under the Inflation Reduction Act, then steps down to 26% in 2033 and 22% in 2034. To claim it, you must own the system (not lease it) and file IRS Form 5695 with your tax return.

How much can I save with solar rebates?

Total savings vary widely by state. On a typical 6kW system ($15,000–$20,000 before incentives), the 30% federal ITC alone saves $4,500–$6,000. State tax credits can add another 10–25% in states like New York (25%), Massachusetts (15%), and South Carolina (25%). Utility rebates can add $500–$2,500 more. In SREC markets, ongoing certificate sales can add $500–$2,000 per year. Many homeowners in incentive-rich states see total first-year savings of 50–60% of system cost.

What is an SREC?

A Solar Renewable Energy Certificate (SREC) is a tradeable certificate that represents 1,000 kWh (1 MWh) of solar electricity generation. In states with SREC markets — including New Jersey, Massachusetts, Maryland, Washington DC, Ohio, and Pennsylvania — utilities are required to source a percentage of electricity from solar. They buy SRECs from solar homeowners to meet this requirement. SREC prices range from $5 to $400+ depending on the state, so a typical home system generating 10 MWh/year can earn $50 to $4,000 annually from SRECs alone.

Which states have the best solar incentives?

Top states for solar incentives include: New York (25% state tax credit, strong VDER net metering, NY-Sun rebates), Massachusetts (15% state credit, SMART program, strong SREC market), New Jersey (no sales tax, no property tax increase, robust SREC market), California (net metering NEM 3.0, no sales tax, property tax exemption), Maryland (30% federal + state SREC market, local utility rebates), and South Carolina (25% state tax credit). However, even states with fewer direct incentives — like Arizona and Nevada — benefit from very high solar output due to abundant sunshine.

Do rebates reduce my federal tax credit?

It depends on the type of rebate. Utility rebates paid to you directly typically do NOT reduce your ITC — but they are sometimes taxable income, so you may owe taxes on the rebate amount. State tax credits do NOT reduce your federal ITC basis. However, some utility rebates paid directly to your installer (as an upfront discount) DO reduce your ITC basis because they reduce your net system cost. Always consult a tax professional to understand how specific rebates interact with your federal and state tax credits.

What is net metering?

Net metering is a billing arrangement where your utility credits you for excess solar power you send to the grid. If your panels produce more electricity than you use during the day, the surplus flows to the grid and you receive a credit (typically at the retail electricity rate) that offsets power you draw at night or on cloudy days. Net metering policies vary by state and utility — some offer full retail rate credits, others offer wholesale or avoided-cost rates. States like California recently moved to NEM 3.0 which offers lower export rates but higher time-of-use credits.

How do I claim the solar tax credit?

To claim the federal ITC: (1) Own the system — you must purchase or finance it, not lease. (2) Ensure the installation is complete and the system is operational in the tax year you claim. (3) Obtain all contractor invoices and permits. (4) File IRS Form 5695 (Residential Energy Credits) with your federal tax return. Enter the total system cost on Line 1 and calculate 30% on Line 6. The credit flows to Schedule 3, Line 5 of your Form 1040. If the credit exceeds your tax liability, carry forward the unused portion to next year.

What is a solar loan vs solar lease vs PPA?

A solar loan lets you borrow money to purchase the system outright — you own the system, qualify for the federal ITC and all incentives, and build equity. After the loan is paid off, all electricity is essentially free. A solar lease means you pay a fixed monthly fee to use a solar company's panels on your roof — you don't own the system, can't claim the ITC, and don't earn SRECs, but there's typically no upfront cost. A Power Purchase Agreement (PPA) is similar to a lease — you pay per kWh for the solar electricity generated, usually at a rate below your utility's rate. For maximum long-term savings and incentive access, ownership via cash or solar loan is best.

How long does solar panel ROI take?

The average payback period for US homeowners is 6–12 years, depending on system cost, electricity rates, sun hours, and incentives claimed. States with high electricity rates (CT, MA, CA, HI) see faster payback — sometimes 5–7 years. States with lower rates or less sun may see 10–12 year payback. After payback, a solar system generating free electricity for the remaining 15–20+ years of its life represents pure savings — often $30,000–$50,000 in electricity cost avoidance over the system lifetime.

Does going solar increase home value?

Yes — multiple studies, including research from Lawrence Berkeley National Laboratory, show solar installations add an average of $15,000 to $20,000 to home resale value (roughly $4 per watt of installed capacity). Importantly, most states have property tax exemptions that prevent this added value from increasing your property tax bill. Buyers perceive solar as a valuable upgrade — especially as electricity prices rise. However, leased systems (where you don't own the panels) can complicate home sales and may require lease transfer approval.

⚠️ Disclaimer: The information on this page is for educational purposes only and does not constitute financial, tax, or legal advice. Solar incentive programs change frequently — always verify current details with the relevant state agency, utility, or DSIRE, and consult a qualified tax professional before claiming any tax credits.

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