With utility rates rising and power outages becoming more common, today’s homeowners are looking for ways to protect their families and budgets.
Retail electricity prices have climbed significantly in recent years, outpacing inflation and putting pressure on household energy costs. Solar and energy storage help hedge against these rising utility bills while providing safer backup power when the grid goes down.
Although the federal 30 % solar tax credit for customer-owned systems expired at the end of 2025, there are still ways for homeowners to capture significant savings through state rebates, tax incentives, and net metering programs—especially if you design and procure your system smartly. And beyond monthly savings, adding solar and battery storage can boost your property value by making your home more resilient, efficient, and attractive to future buyers.
This is your 2026 guide to every incentive program your state offers to make going solar more affordable.
What happened to the Federal Solar Credit in 2026?
In 2025, Congress passed, and the President signed legislation that ended the longstanding 30% federal solar investment tax credit (ITC) for residential systems at the end of December 31, 2025 — meaning that beginning in 2026, there is no longer a federal tax credit available for most homeowner-owned solar installations unless they were installed and fully operational by the end of 2025.
This credit, formally known as the Residential Clean Energy Credit under Section 25D of the Internal Revenue Code, had been one of the major drivers of rooftop solar adoption for over a decade and was previously extended by the Inflation Reduction Act; its early termination means solar systems installed after 2025 generally do not qualify for the 30% credit.
What types of State Incentives Are Available
State solar incentives vary widely, but most programs fall into a few common categories designed to reduce upfront costs, improve long-term savings, or simplify grid interconnection.
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Net Metering & Export Credits: Programs that credit solar system owners for excess energy sent back to the grid, reducing future utility bills.
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State Tax Credits: Income tax credits that directly reduce your state tax liability based on a percentage of your solar installation cost.
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Rebates & Cash Incentives: Up-front payments or rebates from states, utilities, or local governments to lower the initial cost of solar systems.
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Sales & Property Tax Exemptions: Exemptions that eliminate sales tax on solar equipment or prevent increases in property tax value due to solar installation.
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Solar Renewable Energy Credits (SRECs/RECs): Tradable credits earned for each megawatt-hour your system produces that can be sold or monetized.
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Performance-Based Solar Incentives: Payments based on the actual energy your solar system produces over time.
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Loan & Grant Programs: Low-interest loans, grants, or other financing support to make solar more affordable.
State by State Solar Incentives Guide
Alabama
Alabama currently has very limited state-mandated solar incentives or net-metering policies, though some utilities may offer voluntary programs.
Alaska
Alaska participates in net metering and some utility-level solar incentives, but statewide incentives are generally modest.
Arizona
Arizona has statewide net metering or comparable compensation structures and some rebates or tax incentives for solar.
Arkansas
Arkansas offers net metering through utilities and a few state/utility solar programs, though incentives vary by service provider.
California
California maintains a broad set of solar incentives, including net billing/net metering variants, storage incentives, and various utility/state rebate programs.
Colorado
Colorado provides net metering, state incentives, and utility rebate programs supporting residential and commercial solar.
Connecticut
Connecticut has net metering, performance incentives, and state-level solar programs available in 2026.
Delaware
Delaware offers net metering and other solar incentives, including state-backed programs and utility rebates.
Florida
Florida has net metering and state exemptions (e.g., property/sales tax), with additional local incentives in some areas.
Georgia
Georgia’s statewide incentives are limited with tighter net metering provisions, though some utilities offer solar programs.
Hawaii
Hawaii provides strong solar incentives including net metering and utility/state programs to support solar and storage.
Idaho
Idaho has some utility-level net metering options but limited statewide tax incentives or rebates.
Illinois
Illinois supports solar through net metering, adjustable block incentives, and other state/utility programs.
Indiana
Indiana offers net metering and a few solar incentives, but state-level financial incentives are generally limited.
Iowa
Iowa has net metering and some state/utility incentives, though program availability varies by utility.
Kansas
Kansas supports net metering and offers a few solar incentives, though statewide programs are modest.
Kentucky
Kentucky provides net metering in many areas but does not have widespread state solar incentives beyond that.
Louisiana
Louisiana offers net metering and some utility solar incentives; statewide tax rebates are limited.
Maine
Maine features net metering, community solar programs, and state incentives for solar installations.
Maryland
Maryland offers net metering, sales/property tax exemptions, and state incentives such as production credits.
Massachusetts
Massachusetts has comprehensive solar incentives including net metering, SMART incentives, and storage credits.
Michigan
Michigan provides net metering and growing state/utility solar incentive programs.
Minnesota
Minnesota supports net metering, community solar gardens, and utility rebate programs.
Mississippi
Mississippi offers net metering through utilities and limited statewide incentives.
Missouri
Missouri provides net metering and some solar rebate programs in certain jurisdictions.
Montana
Montana has net metering and some solar incentives, though programs vary significantly by utility area.
Nebraska
Nebraska offers net metering options and limited additional solar incentives.
Nevada
Nevada supports net metering and offers state and utility solar incentives.
New Hampshire
New Hampshire features net metering and a range of solar incentive programs at the state/utility level.
New Jersey
New Jersey offers net metering and competitive solar incentive programs supporting distributed solar.
New Mexico
New Mexico provides net metering and various state solar incentives tied to renewable energy goals.
New York
New York has net metering, state tax incentives, rebate programs, and storage incentives.
North Carolina
North Carolina supports net metering and a growing suite of solar and utility incentive programs.
North Dakota
North Dakota offers net metering and limited additional solar financial incentives.
Ohio
Ohio has net metering but more limited state solar incentives compared with other states.
Oklahoma
Oklahoma offers net metering and utility-level incentive programs.
Oregon
Oregon supports net metering and various solar incentive programs, including state rebates.
Pennsylvania
Pennsylvania provides net metering and solar renewable credit markets, though incentive strength varies.
Rhode Island
Rhode Island offers net metering and state incentives for solar installations.
South Carolina
South Carolina supports net metering and offers some utility rebate programs.
South Dakota
South Dakota does not have statewide net metering or broad solar incentive policies; incentives are minimal.
Tennessee
Tennessee does not maintain statewide net metering or significant solar incentives, beyond select utility programs.
Texas
Texas has net metering in some utilities, property tax exemptions, and local/utility solar incentives, though statewide rebates are limited.
Utah
Utah provides net metering and some state solar tax incentives, though these are modest.
Vermont
Vermont supports net metering and state solar incentives, including streamlined programs for small systems.
Virginia
Virginia offers net metering, property tax exemptions, and some solar incentive programs.
Washington
Washington provides net metering, tax exemptions, and other state solar incentives that help lower solar costs.
West Virginia
West Virginia has net metering and limited additional solar incentives in most areas.
Wisconsin
Wisconsin supports net metering and offers solar incentive programs that vary by utility.
Wyoming
Wyoming offers net metering and a few utility solar incentives, though statewide programs are not extensive.
Let US Solar Supplier Help
Sorting through solar incentives, rebates, and net metering rules can get confusing fast. That’s where we come in.
At US Solar Supplier, we work with real homeowners every day to design practical solar and battery systems, source the right equipment, and make sure nothing gets missed. If you want honest guidance and a clear path forward, we’re here to help you get it done right.
Start your solar journey today!
