UTILITY

A solar utility rebate is a financial incentive offered by a utility company to encourage customers to install solar energy systems, usually rooftop solar panels.

It’s money back (or a bill credit) from your electric utility when you go solar, which helps lower the upfront cost of installation.

How it usually works

• You install a qualifying solar system

• The system meets the utility’s technical and size requirements

• You apply for the rebate (often through your installer)

• The utility pays:

  • a cash rebate, or

  • a credit on your electric bill, or

  • funds directly to the installer (which reduces what you owe)
    
    

Common rebate structures

• Per-watt rebate (e.g., $0.20 per watt installed)

• Flat incentive (a fixed dollar amount)

• Performance-based incentives (PBIs) paid over time based on energy produced
  
  

How rebates differ from other incentives

• Utility rebate → From your local power company

• State or local incentives → From state or city programs

• Net metering → Ongoing bill credits for excess solar energy sent to the grid
  
  

Important things to know

• Rebates are often limited-fund and can run out

• Programs can change or end without much notice

• You usually must apply before or shortly after installation

• Not all utilities offer rebates
  
  

Example

If a solar system costs $20,000 and your utility offers a $2,000 rebate, you only pay $18,000