Incentive API

An Incentive API is a software interface that automatically retrieves, updates, and applies solar incentives, rebates, tax credits, performance-based incentives (PBIs), and utility-specific programs directly into a solar design or proposal workflow. Instead of manually searching for incentives across state databases, utility websites, or local programs, the Incentive API ensures that the latest financial incentives are always included in customer proposals and project financial models.

Solar sales teams, designers, EPC firms, and financial analysts rely on Incentive APIs to calculate savings, optimize payback periods, update ROI estimates, and ensure proposals reflect accurate, real-world pricing. Modern platforms integrate Incentive APIs directly into tools like Solar Designing or proposal systems like Solar Proposals for instant, automated financial modeling.

Key Takeaways

An Incentive API automates the retrieval of solar incentives, rebates, and tax credits.
Ensures proposals and financial models are accurate, up to date, and compliant.
Eliminates manual incentive research for sales, EPCs, and designers.
Supports federal, state, utility, PBI, SREC, and battery program calculations.
Critical for platforms using automated design and proposal workflows like SurgePV.

What Is an Incentive API?

An Incentive API is a programmatic tool that sends and receives data about available solar incentives. It automatically pulls information such as:

Federal tax credits (e.g., ITC)
State rebates and regional programs
Utility-based incentives
Performance-based incentives (SREC/PBI)
Low-income solar incentives
Battery incentives
Demand-response program credits
Renewable energy grant opportunities

The API converts complex incentive rules into clean, usable data for software applications. This removes manual research from the workflow and ensures customers see the most accurate savings estimates.

How an Incentive API Works

1. The solar software sends a request to the API

Inputs may include:

Project address
Utility provider
System size
Equipment type (PV, battery, EV charger)

2. The Incentive API identifies relevant incentives

It searches available datasets, including:

Federal incentive rules
State renewable energy programs
Utility-specific offers
Local rebates and grants

3. The API returns real-time incentive data

The response includes:

Incentive amount
Eligibility requirements
Program deadlines
Incentive stacking rules
Calculation formulas

4. Software applies incentives to financial models

This updates:

Net system cost
Customer cash flow
ROI
Payback period
Monthly loan/PPA estimates

5. Designers generate accurate proposals instantly

Using tools like Solar Designing or the Solar Project Planning Hub, incentives automatically flow into all project outputs.

Types / Variants of Incentive APIs

1. Federal Tax Incentive API

Tracks programs like the Investment Tax Credit (ITC), energy storage credits, and technology-specific adders.

2. State & Local Incentive API

Pulls data from state agencies, municipalities, and clean energy authorities.

3. Utility Incentive API

Retrieves rebates from local utility companies, including demand-response program credits.

4. SREC & Performance-Based Incentive API

Garner SREC pricing, REC multipliers, and PBI payouts.

5. Income-Based Incentive API

Eligibility for incentives targeting low-to-moderate income (LMI) households.

6. Battery Incentive API

Includes grid services incentives, backup power incentives, and resilience programs.

7. EV / DER Bundle Incentive API

Used when solar is paired with EV charging, smart appliances, or distributed energy resources.

How Incentives Are Calculated

Incentive APIs commonly produce results using standardized formulas such as:

1. Percentage-Based Incentives

Example:

Federal ITC = System Cost × ITC%

2. Capacity-Based Incentives

$ / kW or $ / module

3. Performance-Based Incentives

$ / kWh produced

Often tied to POA Irradiance modeling.

4. Flat Rebates

Fixed dollar amounts for installing PV or storage.

5. Income Eligibility Calculations

Based on:

Household size
Area median income
Utility tariff group

Typical Values / Ranges

These values can only be relied on when pulled from real-time APIs, not static spreadsheets.

Practical Guidance for Solar Designers & Installers

1. Always enable Incentive API sync when creating proposals

It ensures the latest incentives automatically flow into system pricing.

2. Combine Incentive APIs with financial calculators

Use tools like the Solar ROI Calculator or Solar Loan Calculator.

3. Understand stacking rules

Some incentives cannot be combined. The API flags this automatically.

4. For battery projects, check applicable adders

Many states are introducing battery bonuses separate from PV incentives.

5. Use Incentive APIs to enhance close rates

Accurate incentives = stronger savings = higher proposal conversion.

6. Recalculate incentives when pricing changes

If hardware or design changes, the Incentive API should be refreshed.

7. Use the Incentive API for LMI project verification

Automated validation avoids paperwork errors.

Real-World Examples

1. Residential Solar Proposal

A homeowner is quoted an 8 kW system.

The Incentive API automatically retrieves:

30% ITC
A $500 utility rebate
Local municipality credit

The proposal updates instantly, reducing the net cost by over $7,000.

2. Commercial C&I Rooftop

A 250 kW array qualifies for:

Performance-based incentives
A state production credit
Accelerated depreciation

The Incentive API calculates these automatically and updates the customer’s 10-year cash flow.

3. Battery + Solar System

A customer installing a 13 kWh battery receives:

A resilience rebate
A time-of-use demand-response credit
The federal storage tax credit

All retrieved and applied instantly through the API.