One of the biggest reasons homeowners make the switch to renewable energy is to experience savings on their utility bills. Customers in every state are eligible for federal tax credits, but states have different incentives to make solar even more attractive. Blue Raven Solar currently operates in 18 states and provides installation services at low cost. We help our customers access and fully utilize every benefit of generating their own power.
Federal Residential Solar Incentives, Rebates, and Credits
The largest solar incentive is the 30% federal investment tax credit (ITC). Recently adjusted in 2022, through the Inflation Reduction Act, the credit percentage increased and delayed the previous plan to reduce and eventually phase out. This credit is available to all residential customers and allows them to receive a credit equivalent to 30% of the cost of their solar panel system, including energy storage, on their federal income taxes.
State Rooftop Solar Incentives, Rebates, and Credits
Learn more about your state’s rooftop solar policies:
Colorado solar owners can benefit from net metering, tax exemptions, and different rebates from local utility companies.
Excess energy produced by solar panels can be purchased from homeowners by investor-owned utility companies – the two in Colorado being Xcel Energy and Black Hills Energy. For residents who receive services from other investor-owned utility companies, excess energy is credited at retail rate indefinitely.
Colorado’s 2.9% sales tax is waved on all solar equipment, which can save homeowners a few hundred dollars when considering an installation. Property taxes are also not increased when going solar.
Several utility companies in Colorado have rebates and solar incentives specific to homeowners. Contact your current utility provider for more information.
- EnergySmart Colorado: The rebate is for up to 25% of your total system cost or $2,500, whichever is lower.
- Holy Cross Energy: Get a rebate of $250 per kilowatt for the first 6 kW and $100 per kW for the next 19 kW.
All photovoltaic equipment, including panels, inverters, batteries, and more are exempt from the Sunshine State’s 6% sales tax, and all homeowners are exempt from an increase in property tax when installing solar.
Contact your local utility provider for more details on the different loan, grant, and rebate programs available.
- Boynton Beach Energy Edge Rebate Program: Residents of Boynton Beach can get up to $1,500 in rebates for installing solar PV equipment and up to $500 back for EV charger installations.
- Dunedin Solar Energy Rebate Grant Program: Homeowners in Dunedin can apply for this solar grant, which provides cash-back incentives of $0.25 per watt installed, for a maximum of $2,500 (10 kW).
- Orlando Utilities Commission (OUC) Residential Energy Efficiency Rebate Program: OUC customers can get rebates of up to $2,000 for battery installations.
- Lakeland Electric Residential Battery Rebate: Customers of Lakeland Electric can get up to a 50% rebate — up to $1,000 — for solar battery and other home storage installations.
Florida’s net metering policies apply to solar owners who are customers of investor-owned utility companies, like Duke Energy, Florida Power and Light, Tampa Electric Company, and Florida Public Utilities Corporation. Though the state has attempted to overturn net metering policies, the most recent attempt in April 2022 was vetoed by Governor DeSantis.
These policies allow homeowners to be credited for excess energy production and after 12 months, unused credits are bought back at the utility’s avoided cost rate.
Idaho residents may qualify for an income tax deduction of 40% of the cost of their solar in their first year, and 20% for the following three years. The maximum deduction is $5,000 per year and not to exceed $20,000 total.
- Net Metering: Idaho does not have a state-wide net metering policy, and the state’s largest power company, Idaho Power, recently cut net metering rates by 60%. Avista Energy and Rocky Mountain Power both have net metering opportunities, though the rates are low and are affected by market costs, time of year, peak usage, and other factors.
All solar panel systems installed in Illinois are exempt from increases in property taxes for homeowners, and through the Illinois Shines Program, homeowners can sell solar renewable energy credits (SRECs) to electricity providers. Learn more about SRECs.
- Investor-owned utility companies like ComEd, Ameren, and MidAmerican are required to offer net metering with a one-to-one credit ratio for excess energy production up to 40kWh.
- Customers of ComEd can also receive a rebate of $300 for every kilowatt of solar capacity installed up to 2,000 kW. However, if homeowners choose to benefit from this rebate, they will only receive net metering credits on their bill that lower energy supply charges. Net metering credits will not lower other kWh-based charges.
Renewable energy owners in Indiana should benefit from helping the planet, so there are three rebate programs rewarding those who participate.
- Indiana’s Renewable Energy Property Tax Exemption: Prevents homeowners from having to pay additional property taxes after their solar system boosts their home value.
- Indiana State Sales Tax Exemption: Provides an exemption for solar equipment and other renewable energy source equipment.
- Solar Easement Laws: Each resident has the right to install a rooftop solar panel system and maintain access to sunlight, preventing any future obstructions.
- Indiana Michigan Power’s Energy Savings Rebate Program: This rebate program is for energy efficiency upgrades—where homeowners can get between $25 and $350 back when they upgrade their thermostat, install a heat pump or ductless mini-split, or opt for a geothermal heat pump.
Net metering in Indiana has changed over time, and utility companies are no longer required to provide credits for excess energy. However, Excess Distributed Generation has taken its place, which credits homeowners for excess energy at the utility’s avoided cost.
Kansas has become a great place for solar energy to thrive and has room to become even better. When homeowners add a custom solar array, they are going to see an increase in their property value, but not in their property taxes, thanks to the state’s renewable energy property tax exemption. Investor-owned utility companies like Evergy must also provide net metering programs to their customers with full credit for excess energy.
Kentucky is up and coming in the solar industry. With the exception of Tennessee Valley Authority (TVA) utilities, net metering is required for investor-owned utilities and electric cooperatives.
There are several energy efficiency rebates for Kentucky homeowners to earn cash:
- Blue Grass Energy Cooperative: Offers rebates up to $750 for air sealing and $400 for duct sealing. Blue Grass offers net metering at the full retail rate.
- Cumberland Valley Electric: Rebates ranging from $50 to $1,370 for select energy-efficient home upgrades.
- Duke Energy: Get up to $1,675 in home rebates through Duke Kentucky’s Smart $aver® program.
Although Michigan does not have a state mandated net metering policy because the Michigan Public Service Commission (MPSC) eliminated it in 2019, homeowners still have opportunities to save with renewable energy. Instead, the MPSC implemented what is called a power supply component, which is where the solar owner is credited for about half of the full retail rate for power sent back to the utility grid.
- Distributed Generation Program: Credits are calculated through a different meter, but homeowners can still be credited for excess energy production. Each utility company has a different rate and regulations. Learn more about these Michigan specific programs.
- City Property Tax Exemption: Michigan homeowners who switch to clean, renewable energy will also not see an increase in their property taxes for their system, despite the thousands of dollars of value added to their home.
Minnesota has several incentives for homeowners to benefit from going solar including net metering and local rewards programs, where homeowners can receive payments directly for their solar energy production.
- Additionally, solar equipment like solar electric and solar heating systems are exempt from the almost 7% sales tax which could result in up to $1,500 worth of savings and solar-electric (PV) systems qualify for property tax exemptions too.
- XCEL Energy: This top utility company rolls over “credits” for the excess energy you send to the grid each month. When the total hits $25.00 or more, the company will send you a check for all overproduction since the last payout.
- All utility companies are required to roll excess energy credits over monthly at the average utility retail rate according to the mandate set by the Minnesota Public Utilities Commission.
- XCEL Energy Solar*Rewards Program: The electric provider offers an incentivized program of annual cash payment to the homeowner in exchange for Renewable Energy Credits (RECs) of $0.02 per kilowatt-hour (kWh).
- SolarSense: This Minnesota Power program provides rebates for solar installations to reduce costs upfront based on your system size, total system cost, and the number of other residents applying for the program. The maximum allocation of funds for 2023 is over $85,000.
- Minneapolis Green Cost Share Program: The program provides Minneapolis property owners to make improvements to their property which lead to greater energy efficiency. Adding solar to your home qualifies you to be eligible to receive up to $50,000 in funds, an incentive for every kilowatt-hour produced at a minimum of $0.20/kWh, if eligible.
- Dakota Electric Association: This performance-based solar rebate program offers customers a rebate of $0.50 per watt for installed capacity, with a cap of $4,000.
With a statewide net metering policy, homeowners in Missouri are set up to save money with solar energy. On top of that, home value increases from solar panel system installations are exempt from property taxes and some utility companies offer cash for solar owners.
- Ameren Missouri’s Solar PV Rebate Program: Ameren customers may be eligible for a utility solar rebate, depending on the size and type of the photovoltaic (PV) system installed. They can receive up to $0.25/watt upfront, which equals about $2,600 in savings for an average 10.5-kilowatt (kW) system. The incentive is capped at 25 kW for residential customers.
- Columbia Water & Light Solar Rebate: Customers of Columbia Water & Light electric company can earn a rebate of $375 to $625 per kilowatt hour (kWh) of solar power generation for solar systems less than 10 kW, and a rebate between $300 and $500 for solar systems between 10 and 50 kW. They can also receive a $400 rebate for installing a qualifying solar water heater. Must be approved prior to installation.
- Evergy Solar Rebate: Net metered home supplied by Kansas City Power & Light may be eligible for a rebate of $0.25 per watt of solar power installed on their home if your system size is over 25kW.
- Liberty Utilities Solar Rebate: Liberty Utilities (formerly Empire District Electric) offers the same solar incentive as Ameren. Customers could be eligible for a rebate of up to $0.25 per watt for their solar panel installation and will be ending in December 2023.
With solar access laws and fantastic incentives, Nevada is one of the top places in the country for solar energy to thrive and benefit homeowners.
- Valley Electric Association: If you live within the service territory, you can qualify for net metering credits worth 75% of the rate you pay your utility company for excess solar electricity sent to the grid and if your system capacity is 25 kilowatt (kW) or less.
- NV Energy: Nevada is considered Tier 4 in net metering terms, which means utility companies will give customers credits for 75% of the retail electricity rate for the excess power they provide to the electric grid.
- NV Energy Storage Incentive Program: The state’s largest utility company created PowerShift, which offers an upfront storage incentive of up to $3,000 to offset the cost of installing integrated energy storage systems between 4 kWh and up to 100 kWh capacity. It is based on customers who are on a Time-of-Use (TOU) rate, who can receive a higher amount of up to $0.19 per watt-hour. Customers not on a TOU rate are compensated $0.095 per watt-hour. The maximum incentive for TOU customers is $3,000 per household; for non-TOU customers it is $1,500 or 50% of the equipment cost, whichever is less.
- NV Energy Solar Thermal Heating: NV Energy offers a flat rate incentive for customers who install eligible solar water heating or solar space heating in their homes. Residential customers can earn up to $3,000.
- Southwest Gas Corporation: Southwest Gas Customers through the Smarter Greener Better Solar Water Heating Program can earn a rebate of up to $3,000 or 30% of total system costs, on qualifying solar water heating systems. They also have a Residential Energy Efficiency Rebate Program where customers who install energy-efficient water heaters can receive up to $225.
North Carolina is one of the top states for solar energy. Solar owners with the following utility providers can get up to the full cost of their electric bill each month covered through net metering policies, which is required by state policy. Full retail rate is credited to customers of Energy United, Union Power, Apex Utilities, Duke Energy Progress and Carolinas, and Dominion Energy.
- State Property Tax Exemption: North Carolina does not tax you for the increase in property value from installing photovoltaic (PV) solar panels.
- Duke Energy Solar Rebate Program: Duke Energy customers can qualify for a one-time cash rebate when installing a solar panel system. Solar owners can earn $0.40 per watt up to $4,000.
Investor-owned utility companies must offer net metering to their customers, where they are credited for excess electricity sent back to the grid in exchange for credits on utility bills. This includes AEP, Duke Energy, Owen Electric, and Ohio Edison. Additionally, Ohio solar owners can qualify for the following state and city incentives:
- Solar Renewable Energy Credits (SRECs) are one-way solar owners can directly earn cash because for each megawatt hour (MWh) of electricity your solar panel produces, you will be granted a SREC, which you can sell to utility providers. Learn more about how SRECS work.
- State Sales Tax Exemption: In terms of savings, all solar equipment including panels, inverters, and batteries in Ohio is exempt from sales tax.
- City Property Tax Exemption: In Cincinnati, property taxes will not increase with solar panel system installations.
Oregon rebates and local net metering are available for all residential solar owners, with unique opportunities to save in different cities. Net metering is required by state law in Oregon, and credits are applied to future utility bills.
- Oregon Solar + Storage Rebate Program: The Oregon Department of Energy (ODOE) offers a rebate of up to $5,000 for a solar electric system and up to $2,500 for an energy storage system. This rebate is paid to your solar contractor and applied to the total price of your project, reducing the initial cost.
- Renewable Energy Systems Exemption: Issued by the State of Oregon, homeowner’s property taxes will not increase after installing a solar panel system.
- Portland General Electric (PGE) or Pacific Power Solar Electric Incentive Rebate Program: PGE customers are eligible for an upfront rebate of either $1,200 or Pacific Power customers $900. Only available to solar owners and when working with an approved Energy Trust solar trade contractor.
- Energy Trust of Oregon Incentives: Based on your household income and electric utility provider, incentives equivalent to $400-$500 per project are offered.
- Salem Electric: Customers can get a rebate of up to $300 per kW installed or $1,500, whichever amount is less.
- City of Ashland: Starting in January 2023, Ashland residents can receive a $600 rebate for installing solar electric on their homes.
South Carolina has been a great place to invest in clean, renewable energy, namely because of its great credits, rebates, and policies for solar owners.
- South Carolina Solar Energy Tax Credit: South Carolina solar owners can claim 25% of the cost of their solar installation on their state income taxes as a credit. The maximum state solar incentive a homeowner can qualify for is $35,000, or 50% of taxpayer’s tax liability for that year, whichever amount is less.
- Renewable Energy and Storage Property Tax Exemption: All renewable energy systems with a rated capacity of no more than 20 kW-AC are eligible for a property tax exemption. Property taxes after installation of advanced inverter or battery storage will not increase.
- Santee Cooper – Rooftop Solar Rebate Program: This incentive provides solar owners a rebate of $0.95/Watt hour (Wh) produced with a max incentive of $5,700. The eligible system size is 20 kilowatts (kW) for residential.
Although net metering is not state mandated, several investor-owned and state-owned public utility companies credit their customers for excess energy produced.
- Duke Energy: Customers will be credited with Time-of-Use (TOU) rates, meaning the KW rates change depending on the time of year and energy demanded. Credits will roll over monthly and any remaining credits at the March billing period are paid out. Your system must be 20 kW or less to qualify.
- Black River Electric Cooperative (BREC): Credit rates for BREC customers are dependent on availability, with a first-come, first-serve standard for systems of 20 kilowatts or less.
- Dominion Energy (previously SCE & G): For full retail rate, every kilowatt hour (kWh) produced by your system you don’t use is sent back to the utility grid. Every excess kWh earns you a credit, which you can use towards your bill next month at the same rate as your current electric service. At the end of the calendar year any remaining excess credits will be reimbursed.
Solar energy in Utah continues to grow.
- Utah Renewable Energy Systems Tax Credit (RESTC): The state government will give you a credit towards next year’s income taxes to reduce solar costs and 2023 is the final year the 25% state credit will be available. Solar panel installations in 2024 will not be eligible for this credit on their state income taxes. This applies to total equipment and installation costs, up to $400.
- Rocky Mountain Power Wattsmart Battery Program: Rocky Mountain Power customers who install a solar battery along with their rooftop solar panels will have access to an up-front incentive and earn ongoing bill credits. This incentive provides rebates for certain solar storage options ranging from $400 – $5,000+, based on the size and type of battery.
- Rocky Mountain Power EV Charging Station Grant and Rebate Program: Residential AC Level 2 charger owners can receive a rebate of 75% of the cost up to $200.
Utah does not require utility companies, investor-owned, municipal, or electric cooperatives, to provide net metering programs statewide, but many do with qualifying conditions:
- Rocky Mountain Power: All excess energy credits are put towards the net billing cycle based off of cumulative kilowatt-hour (kWh) and expire in March of each year. Utah has an individual system capacity limit of 25 kW for residential users.
- Brigham City Power: Using a Distributed Generation model, based on a first-come, first-served basis Brigham City Power customers can be credited for excess energy on a monthly basis, up to 10 kilowatt hours (kWh).
- Excess energy is fully credited until the end of each annual billing cycle, when credits are zeroed out for Murray City Power, Spanish Fork City Power, Lehi City Power, Provo City Power, and Payson City Power. Limitations apply.
Virginia offers multiple solar incentives to homeowners to reduce their solar installation costs. Some include:
Net metering regulations are set by the state Corporate Commission. All utility companies, including Dominion Energy, Shenandoah Valley Electric Cooperative, Northern Virginia Electric Cooperative (NOVEC), and more, must credit homeowners at a 1:1 rate, monthly. At the end of the billing cycle, customers can be reimbursed at avoided-cost rates or continue to roll over their credits.
In conjunction with the state’s Renewable Portfolio Standards, Virginia homeowners can sell solar renewable energy certificates (SRECs) to their electricity providers. For more information about SRECs, read our blog.
- Residential Property Tax Exemption: The state of Virginia has a law exempting solar panel systems from any property tax increases, in full or partially, and not all localities allow this exemption.
- Solar Easement Laws: Each solar owner has the right to install solar panels and have proper access to sunlight, preventing any future obstructions.
The state of Washington is a great state for solar installations and clean energy rewards. Net metering is required by state law to be credited at full retail rate each month. Credits expire on March 31st every year, and eligibility is on a first-come, first-serve basis. Some local utilities who participate include Avista Corporation, Clark Public Utilities, and Puget Sound Energy.
- Renewable Energy Projects Sales & Use Tax Exemptions: This exemption prevents Washington residents from having to pay sales tax on their solar equipment for solar energy systems smaller than 100 kilowatts are exempt from state and local sales and use taxes. Given the average system cost of $26,900 and the average sales tax of 6.5%, it’s an average of $1,749 in savings. A buyer’s retail sales tax exemption certificate is required.
- Solar Easement Laws and Rights: Work with your neighbors to ensure nothing shades your solar panels while the sun is shining. Additionally, the state of Washington protects you as your homeowners’ association also can’t prohibit installing a custom rooftop system on your home.
Let Blue Raven Solar be Your Residential Solar Panel Installer Today
These states have great potential for solar growth and are helping homeowners, like you, take control of their energy production through financial incentives, rebates, energy-efficient programs, and credits.
Are you looking to go solar? Reach out to Blue Raven Solar, an in-house solar panel installer who makes going solar easy and straightforward. We have solar experts from ocean to ocean available to assist you with each step of the installation process and navigate which monthly savings you could qualify for.