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 each state has different solar incentives to make the switch more affordable and accessible. Blue Raven Solar currently operates in many different states and provides installation services at low cost. We help homeowners access and fully utilize every solar incentive available for solar panels.
Solar terminology can also be difficult to navigate as a homeowner looking to adopt solar. Blue Raven Solar has resources available to help customers become familiar with lingo and feel educated in their decision to go solar.
Federal Residential Solar Incentives, Rebates, and Credits
The largest solar incentive available for rooftop solar panel installations is the 30% federal investment tax credit (ITC). 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 homeowners who install a residential solar panel system 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 rooftop solar incentives per state:
One of the biggest incentives for installing solar panels in Colorado is net metering. Net metering programs allow excess energy produced by solar panels to be purchased from homeowners by investor-owned utility companies – 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 a custom solar installation. Property taxes are also not increased when going solar.
Several utility companies in Colorado have rebates and solar incentives specific to homeowners:
- 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 6kW and $100 per kW for the next 19kW.
- Black Hills Energy: Homeowners have access to a rebate program providing an incentive of $0.03 per kWh for systems under 30kW. This incentive is paid out over 10 years.
- Xcel Solar*Rewards Program: For systems under 25kW, homeowners can receive $0.005 per kWh generated.
All photovoltaic (PV) 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.
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. Net metering allows homeowners to be credited for excess energy production and after 12 months, unused credits are bought back at the utility’s avoided cost rate.
Contact your local utility provider for more details on the different solar loans, grants, 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).
- Lakeland Electric Residential Battery Rebate: Customers of Lakeland Electric can get up to a 50% rebate — up to $4,000 — for solar battery and other home storage installations.
Idaho residents may qualify for an income tax deduction of 40% of the cost of their solar panel system in their first year, and 20% for the following three years. The maximum deduction is $5,000 per year and cannot exceed $20,000 total.
Idaho does not have a state-wide net metering policy, and the state’s largest power company, Idaho Power, cut net metering rates by 60% on January 1st, 2024. Avista Energy and Rocky Mountain Power both have net metering programs and 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, and through the Illinois Shines Program, homeowners can sell solar renewable energy credits (SRECs) to electricity providers.
- Investor-owned utility companies like ComEd, Ameren, and MidAmerican are required to offer net metering programs 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 installed up to 2,000 kW. However, if homeowners choose to benefit from this rebate, they will only receive net metering credits on their power bill. Net metering credits will not lower other kilowatt hour (kWh)-based charges.
Net metering in Indiana has changed over time, and utility companies are no longer required to provide credit for excess electricity generated. However, Excess Distributed Generation has replaced it, which credits homeowners for excess energy at the utility’s avoided cost.
There are many benefits for homeowners in Indiana who are looking to go solar. These are four solar incentives 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.
Kansas has become a great place for solar energy to thrive. When homeowners add a custom solar array to their homes, they are going to see an increase in their property value, but not in their property taxes. This is because of 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 electricity created by their rooftop solar panel systems.
The solar industry is growing in Kentucky. With the exception of Tennessee Valley Authority (TVA) utilities, net metering programs are required for investor-owned utilities and electric cooperatives.
There are several energy incentives for investing in solar, Kentucky homeowners can take advantage of:
- 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 no longer has a state mandated net metering policy, homeowners still have opportunities to save money with solar incentives. The Michigan Public Service Commission (MPSC) implemented what is called a power supply component. This program allows solar customers to be credited for excess power that is sent back to the utility grid at about half the full retail rate.
- Distributed Generation Program: Electricity credits are calculated through a different meter, but homeowners can still be rewarded for excess energy production. Each utility company has a different rate and specific regulations, so it is important to check with your local company to understand their specific program. Learn more about these Michigan specific programs here.
- City Property Tax Exemption: Michigan homeowners who switch to clean, renewable energy will also not see an increase in their property taxes for their solar panel system, despite the thousands of dollars of value added to their home.
Minnesota has several solar incentives available including net metering and local rewards programs, where homeowners can receive payments directly for their solar energy production.
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.
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 systems qualify for property tax exemptions too.
- XCEL Energy: This top utility company rolls over “credits” for the excess energy you send to the utility grid each month. You can submit your application here. They recommend waiting until you receive approval to begin installation.
- 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 $0.03 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.
- Minneapolis Green Cost Share Program: This program provides Minneapolis property owners to make improvements to their home and property which lead to greater energy efficiency. Adding a customized solar panel system qualifies you to be eligible to receive up to $50,000 in funds, an incentive for every kilowatt-hour (kWh) 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 solar capacity, with a cap of $4,000.
With a statewide net metering policy, homeowners in Missouri are set up to save with solar energy. In addition, their home value can increase from solar panel system installations which are exempt from property taxes and some utility companies offer cash for solar owners too.
- 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. Solar projects must be approved prior to installation to qualify.
- 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 the system size is over 25 kilowatts (kW).
Nevada is considered Tier 4 in net metering terms, which utility companies will give customers credits for 75% of the retail electricity rate for the excess power they provide back to the electric grid.
- Valley Electric Association: If you live within the service territory, you can qualify for net metering credits equaling 75% of the rate you pay your utility company for excess solar electricity sent to the utility grid and if your system capacity is 25 kilowatts (kW) or less.
- 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-kilowatt hours (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 a Residential Energy Efficiency Rebate Program where customers who install energy-efficient water heaters can receive up to $225.
North Carolina is a great state for solar energy adoption. 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.
North Carolina does not tax solar customers 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.
In terms of solar savings, all solar-related equipment including panels, inverters, and batteries in Ohio are exempt from sales tax and property tax.
Investor-owned utility companies must offer net metering programs to their customers, where they are credited for excess electricity sent back to the utility grid in exchange for credits on power bills. This includes AEP, Duke Energy, Owen Electric, and Ohio Edison. Additionally, Ohio solar homeowners can qualify for the following state and city incentives:
- Solar Renewable Energy Credits (SRECs): For each megawatt hour (MWh) of electricity your solar panel produces, you will be granted a SREC, which you can sell to utility providers.
Oregon solar rebates and local net metering are available for all homeowners who invest in residential solar, with unique opportunities to save in different cities. Net metering is required by state law in this state, 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 solar 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-$450 per solar project are offered.
- Salem Electric: Customers can get a rebate of up to $300 per kilowatt hour (kWh) installed or $1,500, whichever amount is less.
South Carolina is a great place to invest in clean, renewable energy, because of its great renewable energy credits, rebates, and policies.
- 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 kilowatts (kW) 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 adopters a rebate of $0.95/Watt hour (Wh) produced with a max incentive of $5,700. The eligible solar panel 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 by solar energy.
- Duke Energy: Customers will be credited with Time-of-Use (TOU) rates, meaning the kilowatt (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 solar panel systems of 20 kilowatts (kW) or less.
- Dominion Energy (previously SCE & G): For full retail rate, every kilowatt hour (kWh) produced by your rooftop 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 electricity 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, with significant solar incentives to those who mount solar panels to their roofs.
- Rocky Mountain Power Wattsmart Battery Program: Rocky Mountain Power customers who install a solar battery along with their solar panels will have access to an up-front incentive and earn ongoing power bill credits. This incentive provides rebates for certain solar storage options ranging from $400 – $5,000+, based on the size and type of battery selected.
- 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 offer similar rewards with qualifying conditions:
- Rocky Mountain Power: All excess energy credits are applied to the net billing cycle based off of cumulative kilowatt-hours (kWh) and expire in March of each year. Utah has an individual system capacity limit of 25 kilowatt (kW) for residential users.
- 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 incentives for integrating solar panels into your household power generation, also reducing solar installation costs.
Net metering regulations are set by the state Corporate Commission. All utility companies 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.
The state of Virginia also has a law exempting solar panel systems from any property tax increases, in full or partially, and not all localities allow this exemption. 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 great for clean energy. Net metering is required by state law to be credited at full retail rate each month. Credits expire on March 31 each year, and eligibility is on a first-come, first-serve basis. Some local utilities who participate in these programs include Avista Corporation, Clark Public Utilities, and Puget Sound Energy.
Washington prevents homeowners from having to pay sales tax on their solar equipment. Solar energy systems smaller than 100 kilowatts (kW) 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.
Additionally, the state of Washington prevents homeowners’ associations (HOAs) from prohibiting installations of a custom rooftop system on your home.
Wisconsin provides many different rewards and solar incentives to homeowners. All utility companies in Wisconsin must allow net metering, meaning solar adopters can sell their excess energy back to the utility grid for credits on future bills.
- Focus on Energy: Focus on Energy is a statewide incentive program offering resources, rebates, and incentives for installing solar electric systems in homes and businesses. Homeowners who decide to go solar can earn a $500 rebate, once their system is installed.
- Renewable Energy Projects Sales & Property Tax Exemptions: This exemption prevents Wisconsin homeowners from having to pay sales tax or increased property tax on their solar equipment.
Let Blue Raven Solar be Your Residential Solar Panel Installer Today
Each state has great potential for solar growth and is helping homeowners, like you, take control of their energy production through taking advantage of incentives for solar panels.
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 solar panel installation process and navigate which solar incentives you could qualify for.
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