2025 State-by-State Solar Incentives: Your Complete Tax Credit and Rebate Guide
Solar incentives vary dramatically by state, and knowing which programs you qualify for can save you tens of thousands of dollars on your solar installation.
Beyond the federal 30% tax credit, state and local incentives can reduce your total solar costs by an additional 15-40%. Some states offer such generous programs that your net solar cost drops below $10,000 for a typical home system.
How Solar Incentives Stack Up
Federal + State + Local Incentive Combinations
Top 10 States for Solar Incentives in 2025
• 25% state tax credit (up to $6,000) • No sales tax on solar equipment • Net metering at retail rate • Property tax exemption
• 25% state tax credit (up to $5,000) • NY-Sun Incentive ($0.30-$0.60/watt) • Net metering with credits • Property tax exemption
• SMART program ($0.20-$0.30/kWh for 10 years) • SREC II program ($280-$350/certificate) • Sales tax exemption • Net metering at retail rate
• ZREC program ($0.05-$0.08/kWh for 15 years) • Property tax exemption • Sales tax exemption • Net metering with credits
• SREC program ($50-$150/certificate) • Property tax exemption • Sales tax exemption • Net metering at full retail
Complete State-by-State Breakdown
Northeast Region
Maine
New Hampshire
Vermont
Massachusetts
Rhode Island
Connecticut
New York
New Jersey
Pennsylvania
Southeast Region
Delaware
Maryland
Virginia
West Virginia
Kentucky
Tennessee
North Carolina
South Carolina
Georgia
Florida
Midwest Region
Ohio
Michigan
Indiana
Illinois
Wisconsin
Minnesota
Iowa
Missouri
North Dakota
South Dakota
Nebraska
Kansas
Southwest Region
Texas
Oklahoma
Arkansas
Louisiana
New Mexico
Arizona
West Region
Nevada
Utah
Colorado
Wyoming
Montana
Idaho
Washington
Oregon
California
Pacific Region
Alaska
Hawaii
Utility-Specific Programs
Major Utility Solar Programs
Solar Renewable Energy Certificates (SRECs)
SREC Market Values by State (2025)
Massachusetts
SREC II program through 2030 Typical home produces 4-6 SRECs annually Annual value: $1,120-$2,100
New Jersey
Transition to successor program Typical home produces 4-6 SRECs annually Annual value: $200-$600
Pennsylvania
Alternative Energy Portfolio Standard Typical home produces 4-6 SRECs annually Annual value: $140-$330
Maryland
Renewable Portfolio Standard requirement Typical home produces 4-6 SRECs annually Annual value: $200-$900
Net Metering Policy Impact
Net Metering Value by State
Special Programs for 2025
Low-Income Solar Programs
Community Solar Programs
Minnesota
Massachusetts
New York
Financing Programs and Low-Interest Loans
State-Sponsored Solar Financing
California
Connecticut
New York
Florida
How to Research Local Incentives
Step-by-Step Research Process
Check DSIRE database (dsireusa.org) for your state Look for current incentive programs and deadlines Note any income or system size requirements
Contact your utility company directly Ask about rebates, net metering, and time-of-use rates Get current interconnection requirements
Research local municipal incentives Check city and county websites Ask installers about local programs
Calculate total incentive value Include federal, state, utility, and local programs Factor in financing options and timing
Incentive Application Timeline
Typical Application Process
Pre-Installation (Weeks 1-4)
✓ Research and apply for rebate reservations ✓ Submit utility interconnection application ✓ Obtain required pre-approval documentation ✓ Verify installer qualifications for programs
Installation (Weeks 5-6)
✓ Complete system installation ✓ Pass local and utility inspections ✓ Receive Permission to Operate (PTO) ✓ Document all qualifying expenses
Post-Installation (Weeks 7-12)
✓ Submit rebate claims with documentation ✓ File tax returns with federal and state credits ✓ Begin SREC registration and sales ✓ Monitor net metering credits
Incentive Changes and Expiration Dates
Programs Ending Soon
Expiring Soon
25% state tax credit scheduled to sunset Potential extension under consideration Apply early to guarantee eligibility
25% state tax credit already expired No replacement program currently planned Federal credit still available
Utility rebate programs have limited funds First-come, first-served basis Check availability frequently
Maximizing Your Incentive Value
Pro Tips for Maximum Savings
Install by December 31st to claim tax credits in same year Reserve rebates early as many programs have limited funding Consider battery storage for additional incentives
Keep all receipts and invoices organized Take photos of equipment labels and model numbers Maintain records of all program applications
Work with installers experienced in local programs Consider tax professional for complex credit situations Verify installer qualifications for rebate programs
Your State Incentive Action Plan
Solar incentives can dramatically reduce your system cost, but they require research and proper application. Don't leave money on the table – take advantage of every program you qualify for while they're still available.
Information compiled from DSIRE database, state energy offices, and utility company programs. Incentive values and availability change frequently. Always verify current program status before making decisions.