State-by-State Solar Incentives Guide
Savings with Solar Rebates & Incentives > State-by-State Solar Incentives Guide
State-by-State Solar Incentives Guide
The Federal Solar Investment Tax Credit, secured by the Inflation Reduction Act, offers a 30% credit until the end of 2032, significantly lowering the cost of installing solar systems. Additionally, your state, city, or utility provider may offer further solar incentives, potentially saving you even more on your energy expenses.
Here is a list of local solar incentives categorized by state. This list is continually updated. If your state isn't mentioned, reach out to an Energy Advisor to discover more about your specific solar incentives.
Arizona's Solar Energy Incentives and Benefits
Given its nickname "The Sunshine State," solar panels are a logical option for homeowners aiming to convert the abundant sunshine into savings. Arizona offers several incentives to help boost energy cost savings, making solar energy an even more appealing choice.
Solar Savings in California
California is an excellent state for solar energy, thanks to its high energy costs and abundant sunlight. Although there may be fewer solar incentives compared to other states, the affordability of solar power in California already surpasses the cost of purchasing electricity from utilities. Nonetheless, there are still some California solar incentives worth noting.
Colorado's Solar Incentive Programs
Colorado passed a clean energy bill in 2023 that included funding to streamline permitting local solar energy projects. This comes in addition to state and local solar incentives.
Connecticut Solar Incentives
Despite having the second-highest average electricity prices in the US, Connecticut residents can significantly reduce their energy costs by investing in solar panels. While the state's solar incentives may not be abundant, they can still make a meaningful impact on overall energy savings.
Connecticut's Home Energy Optimization Initiative
The Residential Energy Solutions program, introduced in 2022, replaced net metering in Connecticut and provides solar owners with two options for compensation for their solar energy production. The "netting option" allows for direct payments for each kilowatt-hour of solar generation while maintaining a system similar to net metering.
The "buy-all option" entails selling all solar energy production to the utility for on-bill credit compensation at a flat rate per kWh.
As of now, these seem to be the primary solar incentives in Connecticut, but it is recommended to verify with local government and utility providers for any additional programs.
Maximizing Savings with Florida's Solar Incentives
Maximize Your Savings with Illinois Solar Incentives
Illinois demonstrates how effective solar incentives can boost the appeal of solar energy even in states without constant sunshine or extremely high electricity costs. A prime example is the introduction of the Adjustable Block Program in 2019, which made solar power more financially advantageous. This program has led to significant increases in residential, utility, and community solar installations throughout the state.
According to the Illinois Power Agency's REC Payments calculator, a residential solar system with an annual production of 10,000 kWh in program year 2023-2024 could generate earnings ranging from $10,000 to $12,000 over a span of 15 years.
Exploring Solar Incentives in Maryland
The market value of SRECs can vary over time, but at the current rates, an average solar energy system that generates 7,000 kWh annually could yield earnings exceeding $400 per year.
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Maryland's Municipal Solar Programs and Incentives
Besides the state property tax exemption, several counties provide local property tax credits of up to $5,000 annually. These counties are:
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Baltimore County
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Anne Arundel County
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Prince George’s County
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Harford County
Exploring Solar Incentives in Massachusetts
Massachusetts offers several solar incentives to homeowners, including a state tax credit and a rebate program.
Additionally, there are substantial municipal rebate programs available. It's advisable for homeowners to act promptly and utilize these incentives while they are still available, as funding for such programs can decrease over time.
Exploring Solar Incentives in Minnesota
While not the sunniest state, Minnesota has a number of solar-friendly policies and utility-based incentives.
In Minnesota, homeowners can take advantage of rebate programs offered by at least three public utilities to reduce the cost of residential solar installations. These include:
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Rochester Public Utilities offers a rebate of $500.
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Owatonna Public Utilities provides a rebate of $500.
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Austin Utilities grants a rebate of $500.
These rebates, in conjunction with the 30% federal solar tax credit, can significantly lower the expense of installing rooftop solar systems.
New York's Solar Incentives: Rebates and Savings
New Jersey's Solar Incentives and Rebates
In New Jersey, residents have access to one of the most attractive incentives for solar energy in the US through the Successor Solar Incentive (SuSI) program. When combined with the federal solar tax credit, homeowners in the Garden State can potentially slash their solar installation costs by more than half. This generous incentive structure makes New Jersey a prime location for individuals and businesses looking to invest in renewable energy and significantly lower their expenses.
Overview of the NJ SuSI Program
In the SuSI program, solar energy system owners can generate SREC-IIs (Solar Renewable Energy Certificates) worth $85 for each megawatt-hour (MWh) of electricity their system generates over a period of 15 years. An average solar system, producing around 8 MWh annually, can earn $680 per year from these credits, totaling $10,200 over the 15-year period.
Ohio's Solar Incentive Programs: Maximizing Savings and Sustainability
According to the Office of the Ohio Consumers' Counsel, Ohio boasts over 200 solar companies and is set to experience significant expansion throughout the 2020s. Besides the 30% federal solar tax credit, the state provides several incentives to motivate homeowners to support the flourishing solar industry in Ohio.
Community Development Incentives
There are various city and county-level solar incentives available in Ohio that can help lower the cost of going solar. These include:
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Property tax exemptions in cities like Cleveland and Cincinnati, which prevent the increase in property taxes due to the added value of your solar system.
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Access to low-interest financing through programs such as the Hamilton County Home Improvement Program.
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Consulting with an Energy Advisor to determine whether solar energy is a suitable option for you in Ohio.
Texas Renewable Energy Benefits and Solar Incentives
With abundant sunshine and minimal natural shade, Texas is an ideal location for rooftop solar energy. While state-level incentives are limited, numerous local and utility-specific incentives are available, making it important to research and take advantage of the opportunities in your region.
Texas Solar Incentives: State and Local Government Support
Utility-Supported Solar Programs in Texas
Virginia solar incentives
Virginia provides several solar incentives alongside the 30% federal solar tax credit, making the option of rooftop solar energy more cost-effective compared to purchasing electricity from a utility provider.