Find federal and state solar incentives, tax credits, rebates, and SREC programs. Free solar incentive finder for homeowners and solar professionals.
Solar incentives can reduce the effective cost of a residential system by 30–60% — but only if you know about them and claim them correctly. The challenge is that the incentive landscape is fragmented across federal, state, utility, and local levels, with different eligibility rules, claim deadlines, and annual caps that vary by program. Missing one significant incentive can cost a homeowner thousands of dollars and reduce the persuasiveness of your proposal.
The Solar Incentive & Rebate Finder aggregates available incentives by state and system type. Enter your state, system type (residential or commercial), installation year, system size, and gross system cost — and instantly see your estimated federal ITC amount, state tax credit, state rebate, utility rebate, projected annual SREC income, total combined incentives, and net system cost after all incentives applied.
This tool is designed to give solar professionals and homeowners a fast, comprehensive starting point for incentive research. For final project decisions, always verify current program availability, funding status, and eligibility requirements with the appropriate state agency or utility directly.
All-50-States Coverage
Covers federal ITC, state tax credits, state rebates, utility rebates, and SREC programs for all 50 U.S. states and the District of Columbia.
Real Dollar Estimates
Converts incentive percentages into actual dollar amounts based on your specific system size and cost — so you see $23,400 in ITC savings, not just "30%."
Residential & Commercial
Separate incentive profiles for residential and commercial installations, including MACRS depreciation for commercial projects where applicable.
Before Building a Proposal
Run an incentive check before finalizing proposal financials. Including all available incentives makes your proposal more compelling and ensures customers don't discover missed savings after the fact — which can kill deals or damage trust.
First Customer Meeting
Walk customers through available incentives early in the conversation to anchor the value of acting now. Expiring incentives and limited-funding rebate programs create natural urgency without requiring high-pressure tactics.
Entering a New Market or State
When your company expands to a new state, use this tool to understand the incentive landscape before your first project. The incentive stack varies dramatically by state — what works in Texas doesn't apply in Massachusetts.
Select Your State
Choose the state where the solar system will be installed from the dropdown. The tool immediately filters to show incentives available in that state — including state tax credits, SREC program availability, and notable utility rebate programs in your region.
Select System Type
Choose Residential or Commercial. Commercial projects have access to different incentive structures — including MACRS 5-year accelerated depreciation and the commercial ITC (Section 48) rather than the residential ITC (Section 25D), which can significantly change the incentive profile.
Enter Installation Year & System Size
Enter the planned installation year — this determines which ITC percentage applies and whether state incentives with sunset dates are still available. Enter system size in kW DC, which is used to calculate SREC annual income and any per-kW rebates.
Enter Gross System Cost
Enter the total installed system cost before any incentives. This is used to calculate the exact ITC dollar amount and state tax credit (where the credit is percentage-based). Include all costs: panels, inverter, mounting, wiring, labor, permits, and interconnection fees.
Review Your Complete Incentive Summary
Instantly see your itemized incentive breakdown: federal ITC ($), state tax credit ($), state rebate ($), utility rebate ($), estimated annual SREC income ($), total combined incentives ($), and net system cost after all incentives. Use these numbers in your proposal or financial model.
Here's what each output means and how to use it in your project financials.
Federal ITC Amount
e.g. $7,800
The dollar value of the federal Investment Tax Credit applied against your federal income tax liability. Equal to the applicable ITC % multiplied by gross system cost. Must be claimed in the tax year the system is placed in service.
State Tax Credit
e.g. $1,000
Dollar amount of the state income tax credit available in your state. Most state credits are capped at a maximum dollar amount regardless of system cost. Claimed on your state tax return in the installation year.
State Rebate
e.g. $2,500
Direct cash rebate from your state's solar incentive program. Unlike tax credits, rebates do not require you to have tax liability — but may reduce the ITC basis. Subject to funding availability.
Utility Rebate
e.g. $1,200
Cash rebate from your utility company, typically $100–$500 per kW installed. Subject to available program funding and waitlists. Confirm availability before including in a customer proposal.
SREC Annual Income
e.g. $2,100/yr
Projected annual income from selling Solar Renewable Energy Certificates. Based on system production (1 SREC per 1,000 kWh) and current state SREC market price. Only available in states with active SREC programs.
Net System Cost
e.g. $13,500
Gross system cost minus all one-time incentives (ITC + state credit + rebates). This is the effective out-of-pocket cost your customer pays for the system. The basis for payback period and ROI calculations.
Incentive calculations use the current published program parameters for each state, applied against the gross system cost, system size, and annual production estimate provided. All formulas follow published IRS guidance and state program rules.
Federal ITC (Section 25D Residential / Section 48 Commercial)
Federal ITC ($) = Gross System Cost × ITC Rate (%)
ITC Basis = Gross Cost − Pre-Installation Utility Rebates Received
Net ITC = ITC Basis × ITC Rate (%)
State Tax Credit
State Credit ($) = MIN(Gross System Cost × State Credit Rate, State Credit Cap)
e.g. NY: MIN($26,000 × 25%, $5,000) = MIN($6,500, $5,000) = $5,000
SREC Annual Income
Annual SRECs = Annual Production (kWh) ÷ 1,000
Annual SREC Income ($) = Annual SRECs × Current State SREC Price ($/SREC)
Net System Cost
Net Cost = Gross Cost − Federal ITC − State Tax Credit − State Rebate − Utility Rebate
(SREC income is ongoing annual income, not subtracted from upfront net cost)
Important: Incentive availability and amounts are subject to change. This tool provides estimates based on published program parameters. Always verify with DSIRE.org, the relevant state energy office, your utility, and a qualified tax professional before including incentive amounts in a binding proposal or customer contract.
Key solar incentive programs by state. All states also qualify for the federal ITC. Verify current availability with state agencies and utilities before use in proposals.
| State | State Tax Credit | State Rebate | Property Tax Exemption | Sales Tax Exemption | SREC Market | Net Metering |
|---|---|---|---|---|---|---|
| California | None | SELF Program (low-income) | Yes — full | Yes | No | NEM 3.0 (avoided cost) |
| Massachusetts | 25%, up to $1,000 | SMART Program | Yes — full | Yes | Yes — $250–$400/SREC | Full retail NEM |
| New York | 25%, up to $5,000 | NY-Sun ($0.20–$0.40/W) | Yes — full | Yes | No | Full retail NEM |
| New Jersey | None | None (NJCE expired) | Yes — full | Yes | TRECs — $90–$220/SREC | Full retail NEM |
| Maryland | 30%, up to $1,000 | Maryland SREC rebate | Yes — full | Yes | Yes — $60–$100/SREC | Full retail NEM |
| Texas | None | Austin Energy / CPS rebates | Yes — full | Partial (mfg. equipment) | No | Varies by utility |
| Florida | None | None statewide | Yes — full | Yes | No | Retail NEM (modified) |
| Arizona | 25%, up to $1,000 | None statewide | Yes — full | Yes | No | Reduced (APS, TEP) |
| Colorado | None | Xcel Energy rebates | Yes — full | Yes | No | Full retail NEM (Xcel) |
| Illinois | None | Illinois Shines (SREC+) | Yes — full | No | Illinois Shines ABP | Full retail NEM |
| Pennsylvania | None | None statewide | Yes — full | No | Yes — $20–$45/SREC | Full retail NEM |
| Washington D.C. | None | None | Yes — partial | Yes | Yes — $350–$450/SREC | Full retail NEM |
Data current as of early 2026. Incentive programs change frequently — always verify with state agencies (DSIRE.org), utilities, and a licensed tax professional before building proposals. SREC prices are indicative market ranges; actual transaction prices vary.
Verify Utility Rebate Availability Before Promising It
Utility rebate programs frequently run out of funding before their stated end date. Never include a utility rebate in a customer proposal without first confirming with the utility that funds are currently available and the customer is eligible. A promised rebate that disappears will damage your relationship and your reputation.
Understand the ITC Basis Reduction Rules
Utility rebates received before system installation reduce the ITC basis dollar-for-dollar. If a customer receives a $2,000 utility rebate before installation, their ITC is calculated on the gross cost minus $2,000 — not the full gross cost. State rebates generally do not affect the federal ITC basis. Always clarify this with a tax professional for large commercial projects.
SREC Prices Are Market-Driven — Not Guaranteed
SREC prices fluctuate based on supply and demand in each state's SREC market. Massachusetts SRECs have ranged from $225 to $450 in recent years. New Jersey's market has been oversupplied at times, pushing prices to $20–$40. Use conservative SREC income projections — the market price from last year may not reflect what customers receive next year.
Commercial: Always Model MACRS Depreciation
For commercial solar projects, MACRS 5-year accelerated depreciation is often the second-largest incentive after the ITC. In the first 5 years, depreciation deductions can deliver a tax benefit equal to 25–30% of gross system cost for businesses in the 21% corporate tax bracket. Ignoring MACRS in a commercial proposal significantly understates the financial benefit and can cost you deals to competitors who model it correctly.
The federal Investment Tax Credit (ITC) for residential solar was 30% of the gross installed system cost through December 31, 2025, under the Inflation Reduction Act. For systems installed in 2026, the residential ITC steps down to 26% and phases further unless extended by Congress. The commercial ITC (Section 48) follows a different schedule and may include bonus adders for domestic content (10%), energy communities (10%), and low-income communities (up to 20%). Always verify the current ITC rate with IRS guidance or a qualified tax professional before finalizing a project proposal.
The states with the strongest solar incentive packages as of early 2026 are: Massachusetts (25% state tax credit up to $1,000 + SMART program + strong SREC market at $250–$400/SREC), New York (25% state tax credit up to $5,000 + NY-Sun rebates + property and sales tax exemptions), Washington D.C. (highest SREC prices in the country at $350–$450/SREC), Maryland (30% state credit up to $1,000 + SREC market), and New Jersey (strong SREC/TREC program). California's incentives are weaker than they once were due to NEM 3.0 reducing export credits, but property and sales tax exemptions remain strong.
A Solar Renewable Energy Certificate (SREC) is a tradeable certificate representing 1,000 kWh (1 MWh) of solar energy produced. Utilities in SREC states must purchase SRECs to meet Renewable Portfolio Standard (RPS) requirements. A 10 kW system producing 14,000 kWh/year generates approximately 14 SRECs per year. At $300/SREC (Massachusetts rate), that's $4,200/year in SREC income on top of electricity savings. SREC prices are market-driven and vary by state — from $15–$50 in oversupplied markets to $350–$450 in high-demand markets like Washington D.C.
Yes — in most cases, federal and state solar incentives are fully stackable. You can claim the federal ITC, a state income tax credit, receive utility rebates, and earn SREC income all on the same project. Important nuance: utility rebates received before installation may reduce the federal ITC basis, slightly reducing the ITC amount. State rebates typically do not affect the federal ITC basis. For large commercial projects, the interaction between the ITC, MACRS depreciation, and state credits should be analyzed by a tax professional to optimize the total benefit.
Yes — solar incentives frequently expire, phase down, or run out of funding. The federal residential ITC was at 30% through 2025 and phases down in 2026. State tax credits are sometimes capped annually and discontinued entirely. Utility rebate programs often run out of funding mid-year before their stated end date. SREC programs can be restructured by state legislation as markets evolve. Always verify current incentive status before building a proposal, and help customers understand that acting quickly can lock in higher incentive levels.
A solar utility rebate is a cash payment or bill credit provided by your electricity utility for installing solar panels. These programs are typically funded through surcharges on all ratepayers and designed to encourage solar adoption and grid stability. Rebate amounts range widely: $100–$500/kW installed, totaling $500–$5,000 for a typical residential system. Notable programs include Austin Energy's Solar Rebate Program (~$2,500 flat), Xcel Energy's Solar*Rewards in Colorado, and various programs through investor-owned utilities across the Northeast. Check your utility's website — and confirm current funding before including in proposals.
Yes — commercial solar projects access a strong incentive stack. The commercial ITC (Section 48) was 30% through 2025 with bonus adders of up to 10% for domestic content and another 10% for energy communities (former fossil fuel communities). MACRS 5-year accelerated depreciation adds approximately 25–30% in tax benefit for businesses with full tax appetite. Many states also offer commercial versions of their solar incentive programs, and commercial properties in SREC states earn SREC income. The combined ITC + MACRS benefit can cover 50–60% of a commercial system's gross cost in tax savings alone.
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