Solar Incentives by State (2025)

Find federal tax credits, state rebates, and utility programs to reduce your solar installation cost by up to 50%.

30%
Federal Tax Credit
$7.5k
Avg State Rebate
5
States Covered

Federal Solar Tax Credit (30% ITC)

30% of Total System Cost

The federal solar Investment Tax Credit (ITC) allows you to deduct 30% of your solar system cost from your federal taxes. This applies to the full cost including equipment, labor, and installation.

Example Savings
$9,000
On a $30,000 system
Expires
2034
26% in 2033-2034
Who Qualifies
All
Homeowners nationwide

Important: The ITC is a tax credit, not a rebate. You'll need sufficient tax liability to claim the full amount. Unused credits can be rolled over to future tax years. Learn more about the federal solar tax credit →

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State Solar Incentives

In addition to the 30% federal tax credit, many states offer additional incentives like state tax credits, cash rebates, property tax exemptions, and sales tax exemptions. These can reduce your net cost by an additional 10-30%.

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How to Claim Solar Incentives

1

Install Your Solar System

Work with a certified installer to design and install your system. Keep all receipts and documentation.

2

Apply for State & Utility Rebates

Submit applications to your state energy office and utility company. Some rebates are instant at point of sale.

3

Claim Federal Tax Credit

File IRS Form 5695 with your tax return to claim the 30% federal tax credit. Consult a tax professional if needed.

Calculate Your Total Savings

Use our solar calculator to see exactly how much you can save with federal tax credits, state rebates, and lower energy bills.

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