STATE

States with explicit income tax credits for solar installations:

• Arizona — personal tax credit for solar installations (e.g., 25% of cost up to $1,000). 

• Hawaii — income tax credit (reported ~35% of cost up to a cap).

• Massachusetts — 15% state tax credit (e.g., up to $1,000).

• New Mexico - 10% state tax credit (e.g. up to $6,000).

• New York — state solar tax credit (e.g., 25% up to $5,000).

• South Carolina — 25% credit (up to $6,000 stated).

• Utah — state solar tax credit (up to a defined amount; phased by some programs).

A sales tax exemption for solar means that when someone buys qualifying solar energy equipment, they do not have to pay state (and sometimes local) sales tax on that purchase.

How it works

• Normally, sales tax applies to equipment like panels, inverters, racking, and sometimes labor.

• With a solar sales tax exemption, those items are excluded from taxable sales if they meet the state’s definition of “solar energy equipment.”

• The exemption is applied at the point of sale (the tax is never charged), rather than refunded later.
  
  

What’s typically covered

Coverage varies by state, but often includes:

• Solar PV panels and modules

• Inverters and balance-of-system equipment

• Mounting/racking hardware

• Wiring and related components

• Sometimes energy storage if paired with solar

• In some states, installation labor
  
  

Who benefits

• Residential customers installing rooftop solar

• Commercial and industrial solar projects

• Nonprofits and public entities (where allowed)
  
  

Why states offer it

• Lowers the upfront cost of solar systems (often saving 4–10% depending on tax rate)

• Encourages adoption of clean energy

• Helps solar compete with conventional energy sources
  
  

Important nuances

• State-specific: Not all states offer this, and rules differ widely.

• Local taxes: Some exemptions apply only to state sales tax, not local or county tax.

• Documentation: Buyers or installers may need to submit an exemption certificate to the seller.

• Technology definitions: The exemption usually applies only if the system meets statutory definitions (e.g., used primarily to generate electricity from solar energy).
  
  

Simple example

If a state has a 6% sales tax and a homeowner installs a $25,000 solar system:

• Without exemption: $1,500 in sales tax

• With exemption: $0 sales tax → Immediate savings of $1,500

A solar property tax exemption is a policy that prevents your property taxes from increasing because of a solar energy system added to your home or business.

What normally happens without an exemption

When you install solar panels, your property value usually goes up.
In many states, higher property value = higher property taxes.

Example (no exemption):

• Home value before solar: $400,000

• Solar system adds value: $25,000

• New taxable value: $425,000

• Result: higher annual property tax bill
  
  

What happens with a solar property tax exemption

A solar property tax exemption excludes the value of the solar system from property tax assessments.

Same example (with exemption):

• Home value before solar: $400,000

• Solar system value: $25,000

• Taxable value stays $400,000

• Result: no increase in property taxes due to solar
  
  

You still benefit from the higher resale value, but you don’t pay extra taxes on it.

What exactly is exempt?

This depends on the state, but often includes:

• Solar panels

• Inverters

• Mounting equipment

• Racking

• Wiring and balance-of-system components
  
  

Some states also include:

• Battery storage (if paired with solar)
  
  

Types of solar property tax exemptions - Not all exemptions work the same way:

1. Full exemption

• 100% of solar system value is excluded

• Common in states like California, Texas, Florida
  
  

2. Partial exemption

• Only a portion is excluded (e.g., 80%)

• Example: North Carolina
  
  

3. Time-limited exemption

• Exemption lasts for a set period (e.g., 10–20 years)

• Example: Massachusetts
  
  

4. Local-option exemption

• State allows it, but cities/counties must opt in

• Example: New Hampshire, Virginia
  
  

Who benefits?

• Homeowners installing rooftop solar

• Commercial property owners

• Nonprofits and schools (varies by state)
  
  

Some states treat residential and commercial systems differently.

Important things to know

• ⚠️ Not automatic in every state – some require an application

• 📍 Local rules matter – counties or cities may interpret differently

• 📄 Often administered by the county property appraiser or assessor

• ❌ This is not the same as:

  • Federal Investment Tax Credit (ITC)

  • Sales tax exemptions

  • Utility net metering
    
    

Why states offer this incentive

• Encourages solar adoption

• Removes a financial penalty for going solar

• Supports clean energy goals without reducing homeowner equity

📌 State & Utility Solar / Distributed Generation Rebates by state

Below are identified DG rebate and incentive programs (primarily solar) — actual values and availability often vary by utility and change over time:

🌞 Northeast

Massachusetts: SMART Program – performance-based solar incentive (rebate-like payments per kWh over years).

Connecticut: Residential Solar Investment Program — state/utility rebate for solar systems.

New York: NY-Sun Incentive — upfront per-watt solar rebates.

Rhode Island: Renewable Energy Growth program — performance payments for distributed solar. 

🔌 Mid-Atlantic

Pennsylvania: Pennsylvania Sunshine Solar Program — solar rebates per watt.

Maryland: Residential Clean Energy Rebates — up to around $1,000 (plans to expand).

☀️ South
Tennessee: TVA Green Invest had past DG incentives (still honoring existing contracts).

Florida: Some municipal utility rebates (e.g., Tampa, JEA) and solar water heater rebates.

South Carolina: Utility rebates (e.g., Santee Cooper $0.95/W up to caps). Solar.com

🌞 Midwest

Illinois: Illinois Shines / Adjustable Block Program — incentives (production-based or upfront).

Minnesota: Utility-level rebates (Solar*Rewards programs).

Missouri / Iowa: Local utility rebates available in select areas.

🌄 West

Arizona: SunWatts Renewable Energy Incentive – utility rebate (e.g., cents per watt with caps).

Nevada: NV Energy Residential Storage / Solar rebates (availability limits).

New Mexico: Utility / state rebate opportunities combined with tax incentives. 

Colorado: Utility rebates (e.g., Xcel Energy solar rebate per kW).

Oregon: Oregon Solar + Storage Rebate and Solar Within Reach rebates up to ~$1.20/W for qualifying customers.

California: Self-Generation Incentive Program (SGIP) — significant incentives for storage (often paired with DG).

🏜️ Other States

New Hampshire :Residential Renewable Electric Generation Rebate ($200/kW, up to ~$1,000).

Colorado/Texas utilities: Local rebates through some municipal utilities (e.g., Austin Energy, San Antonio).

📊 Notes on DG Rebates & Incentives

✅ What These Rebates Typically Are

• Upfront rebates: Dollars per watt installed (e.g., $0.30–$1.00+/W).

• Performance incentives: Payments per kWh produced over time (e.g., SMART, Renewable Energy Growth). 

• Storage or paired system rebates: Often included with solar rebates (e.g., SGIP in California).
  
  

⚠️ Variation by Utility

Many rebates are utility-specific, not statewide:

• Municipal utilities, cooperatives, and investor-owned utilities may each have different rebate programs. 

• Incentive amounts frequently depend on system size, location, income level, and funding availability.
  
  

📍 Best Resource for Full List

To get a comprehensive, up-to-date list of distributed generation rebates and incentives (state, local, and utility), use the DSIRE database — searchable by state, incentive type (rebate), and technology.

Simple definition

👉 1 SREC = 1 megawatt-hour (MWh) (1,000 kWh) of electricity generated by a solar system.

Every time your solar panels produce 1,000 kWh:

• You earn one SREC

• That SREC can be sold for cash
  
  

Why SRECs exist

Many states have Renewable Portfolio Standards (RPS) that require utilities to get a certain % of their power from renewable energy—specifically solar in some cases.

Utilities can comply by:

1. Building solar projects or

2. Buying SRECs from solar system owners
   
   

Buying SRECs is often cheaper, which creates a market.

How SRECs work (step-by-step)

1. Your solar system produces electricity

2. Production is tracked by:

   • A utility meter

   • An online production monitor

3. Every 1,000 kWh = 1 SREC

4. SRECs are issued in a state registry

5. You sell SRECs to:

   • Utilities

   • Aggregators

   • Energy suppliers
     
     

💰 You get paid separately from your electric bill savings.

How much are SRECs worth?

SREC prices vary a lot by state and market conditions.

Typical ranges:

• $20 – $60 per SREC (oversupplied markets)

• $100 – $300+ per SREC (tight markets)
  
  

Prices depend on:

• State supply vs. demand

• Penalties utilities pay for non-compliance

• Program design and caps

States with SREC programs

Not every state has them. Major SREC markets include:

• New Jersey

• Pennsylvania

• Maryland

• Washington, DC

• Ohio

• Massachusetts (now uses a successor program)

• Delaware
  
  

(Some states have moved to fixed-rate or alternative REC programs.)

Who owns the SRECs?

This is critical:

• Homeowner owns SRECs → homeowner gets paid

• Installer or third party owns SRECs → homeowner does not
  
  

Many leases, PPAs, or discounted installs transfer SREC ownership

How long do you earn SRECs?

Depends on the state:

• Commonly 10–15 years

• Some markets are shorter or capped

SRECs vs. regular RECs

• REC = proof of renewable energy (wind, hydro, etc.)

• SREC = solar-specific REC

• SRECs are usually worth more because solar has its own requirement
  
  

Why SRECs matter to homeowners & businesses

✅ Extra income
✅ Faster solar payback
✅ Encourages local solar development
⚠️ Income may be taxable

Quick example

• System produces 9,000 kWh/year

• Earns 9 SRECs

• Market price = $150/SREC

• Annual SREC income = $1,350