Utility Rebates
Utility Rebates
RebateMany 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.
Rate / Amount
$0.10–$0.50/watt or $500–$3,000 flat
Valid Through
Varies by program (often annual budget caps)
Example
Xcel Energy offers $0.30/watt for a 5 kW system = $1,500 rebate, reducing net cost before federal ITC.
How It Works
After installing your solar system, you apply to your utility with proof of installation. The utility pays a rebate — either per-watt (e.g., $0.30/watt) or as a flat amount ($500–$3,000). Rebates reduce your upfront cost immediately and are often processed within 60–90 days.
Eligibility
Varies by utility. Usually requires hiring a licensed installer, using approved equipment, and applying within a specific enrollment window. Funding is often limited.
Real-World Example
Xcel Energy offers $0.30/watt for a 5 kW system = $1,500 rebate, reducing net cost before federal ITC.