Solar Incentives by State

: Maximize Your Savings

Looking to go solar? Here's a breakdown of the best state incentives to slash your costs:

1. Massachusetts: 55 programs, $9,480 avg cost after savings
2. New York: $6,519 avg cost, 25% tax credit up to $5,000
3. California: Up to $200/kWh for battery storage
4. Hawaii: 2.38 year payback, 41.97% return rate
5. South Carolina: 25% state tax credit on installation

Key takeaways:

• Federal 30% tax credit available nationwide until 2032
• State incentives can significantly reduce upfront costs
• Net metering policies vary - check your state's rules
• Some programs expiring soon - act fast to maximize savings

Don't wait - incentives change quickly. Research your state's offerings and go solar while savings are high.

Quick Comparison:

State	Programs	Avg Cost After Savings	Payback Period	Return Rate
Massachusetts	55	$9,480	5.13 years	19.5%
New York	44	$6,519	4.2 years	23.8%
Hawaii	39	$11,442	2.38 years	41.97%

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1. New York Solar Programs

New York's solar incentives are a big deal. They're making solar power cheaper than ever. Let's look at what the Empire State offers:

Federal Investment Tax Credit (ITC)

This is the big one. You get 30% of your solar system's cost back as a tax credit. For a typical $22,880 system in New York, that's $6,864 in savings. Not bad, right?

NY-Sun Megawatt Block Incentive

This state program gives you rebates between $0.20 and $0.80 per watt installed. Most people save $1,950 to $3,000. But watch out - this program's ending soon.

New York Solar Energy System Equipment Credit

New York's going all in here. You get a state tax credit for 25% of your system cost, up to $5,000. Most homeowners get the full $5,000.

Sales and Property Tax Exemptions

No 4% state sales tax on solar gear. That's about $2,002 in savings for most folks. Plus, your property taxes won't go up for 15 years after installing solar, even though your home value will. That saves you about $370 per year, or $5,559 over 15 years.

Net Metering and VDER

Got a home system up to 25 kW? You can use net metering. Extra power you make gets you bill credits. Bigger systems use the Value of Distributed Energy Resources (VDER) program, which figures out credits based on when and where you send power to the grid.

Here's how these savings stack up:

Incentive	Average Savings in New York
Federal ITC	$6,864
NY-Sun Megawatt Block	$1,950 - $3,000
NY Solar Equipment Credit	$5,000
Sales Tax Exemption	$2,002
Property Tax Exemption	$5,559 (over 15 years)

These programs can change. The NY-Sun incentive is on its way out. So if you're thinking about solar, don't wait too long.

To get the most out of these incentives:

1. Get quotes from several good installers.
2. Ask about the NY-Sun incentive - your installer should handle this.
3. At tax time, file IRS Form 5695 for the federal credit and New York tax form IT-255 for the state credit.

New York's electricity rates are 48% higher than the national average. These incentives aren't just nice extras - they're making solar a smart money move for many New Yorkers.

2. Massachusetts Solar Benefits

Massachusetts is crushing it in solar adoption. They're #4 in the US for residential solar installations. Why? Because the Bay State's got some sweet incentives that make solar a no-brainer.

Here's the lowdown:

Federal Investment Tax Credit (ITC)

This is huge. You can knock off 30% of your solar installation costs from your federal taxes. And you've got until 2032 to jump on this.

Massachusetts State Tax Credit

The state's throwing in their own tax credit too. You can claim 15% of your solar costs, up to $1,000, on your state taxes. Free money, anyone?

Tax Exemptions

Massachusetts is doubling down with two tax breaks:

1. Your property taxes won't go up because of your solar panels. This lasts 20 years and saves you about $4,000.
2. No state sales tax on your solar system. For a typical 6 kW system at $12,166, that's $760 back in your pocket.

Solar Massachusetts Renewable Target (SMART) Program

This program pays you for the electricity your panels make. It's a 10-year deal with utilities. The sooner you sign up, the better your rate.

Net Metering

Utilities will credit you for extra energy your system produces. It's like a power piggy bank.

Let's crunch the numbers for a 6 kW system in Massachusetts:

Incentive	Savings
Federal ITC (30%)	$3,650
MA State Tax Credit	$1,000
Sales Tax Exemption	$760
Property Tax Exemption	$4,000 (over 20 years)
Total Upfront Savings	$9,410

After these incentives, that $12,166 system costs just $7,516. That's a 38% price cut!

And don't forget, the SMART program and net metering keep the savings coming for years.

"Massachusetts homeowners can take control of their energy futures and enjoy long-term savings", says the ReVision Energy Team.

To max out these benefits:

1. Don't wait. SMART program rates drop as more people join.
2. Shop around for installers.
3. Check with your local Municipal Light Plant for extra rebates. Some offer up to $1,200 per kW.
4. Think about adding a battery. It can boost your SMART payments and give you backup power.

Massachusetts is making solar a no-brainer. You're not just helping the planet – you're helping your wallet too.

3. California Solar Support

California's leading the solar charge. Over a million homeowners are already soaking up the sun's power. The state's going all-in on clean energy, aiming for 100% renewable electricity by 2045. Let's check out the solar perks that make California shine:

Federal Solar Tax Credit

This is the big one. You can knock 30% off your solar system cost through 2032. Got a typical $28,457 10-kW system in California? That's $8,537 back in your pocket.

Net Energy Metering (NEM)

California's NEM program lets you bank extra solar power. But watch out - things are changing:

• NEM 2.0: Got in before April 2023? You're set. Retail rates for your extra energy for 20 years.
• NEM 3.0: The new kid. Not as generous, but still saves you money. You'll get paid based on the "Avoided Cost Calculator", which changes hourly.

"NEM 3.0 export credit values may be 60% to 80% less valuable than NEM 2.0 credits", says the California Solar and Storage Association.

Self-Generation Incentive Program (SGIP)

California's secret weapon for energy storage. Here's the deal:

Category	Rebate	Max Coverage
Equity Resiliency	$1,000/kWh	100% of system cost
Equity	$850/kWh	85% of system cost
General Market	$150-300/kWh	Varies

Property Tax Exclusion

Add solar, but your property taxes stay put. This perk runs through 2025, saving you thousands over time.

Local Incentives

California's cities and utilities often sweeten the pot:

• Rancho Mirage covers your solar permit fees
• Sacramento gives money back on battery storage
• Los Angeles installs solar panels for free, paying $240-$600 yearly to lease your roof

Maximize Your Savings

1. Jump on SGIP: Rebates drop 20% each year until 2028.

2. Think batteries: With NEM 3.0, solar + storage can cover 70-90% of your utility bills.

3. Time it right: Under NEM 3.0, selling power during summer peaks can get you $0.52 per kWh – double NEM 2.0's offer.

California's solar support is strong, but it's changing. The sooner you start, the more you save. Your roof can become a mini power plant – good for your wallet and the planet.

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4. Maryland Solar Offerings

Maryland's solar scene is hot right now. The state's got a bunch of incentives that make going solar a no-brainer for homeowners. Let's break it down:

Federal Investment Tax Credit (ITC)

This is the big one. You can claim 30% of your solar system costs as a federal tax credit. It's sticking around until 2032, but why wait to start saving?

Residential Clean Energy Rebate Program

Maryland's tossing in an extra $1,000 for homeowners who install solar panels. Free money? Yes, please.

Solar Renewable Energy Credits (SRECs)

Here's where it gets cool. For every megawatt-hour of solar energy you produce, you earn one SREC. In 2023, these are selling for about $50 each. A typical 10-kilowatt system could earn you around $600 a year. Not bad for letting the sun do its thing.

Tax Exemptions

Maryland's giving solar adopters two tax breaks:

1. No 6% sales tax on your solar gear. On a $20,000 system, that's $1,200 you keep.
2. Your property value goes up with solar, but your property taxes don't. Sweet deal, right?

Net Metering

This is the icing on the cake. You get full retail credit for excess energy your panels send back to the grid. It's like rollover data for your electric bill.

Here's a quick look at what you could save:

Incentive	Potential Savings
Federal ITC	30% of system cost
State Rebate	$1,000
SRECs	~$600/year (10kW system)
Sales Tax Exemption	6% of system cost
Net Metering	Varies (full retail credit)

To make the most of these perks:

1. Don't drag your feet on the rebate. The funds can run out. As of March 31, 2024, the fiscal year 2024 funds were gone, with a waitlist in place.
2. Size your system right. With net metering, you can offset up to 200% of your annual electricity usage. Don't leave money on the table.
3. Check for local bonuses. Some Maryland counties offer extra tax credits. Anne Arundel County, for example, gives a one-time property tax credit of up to $2,500 for solar installations.

Maryland's solar incentives are making green energy a no-brainer. As David Murray of the Maryland Solar Energy Industries Association puts it, "Maryland's solar policies are creating a win-win scenario for homeowners and the environment."

With these incentives, Maryland's not just talking about a greener future - they're making it happen. And homeowners? They're along for the ride, with lower energy bills and a smaller carbon footprint to boot.

5. Illinois Solar Programs

Illinois is pushing hard for solar energy. The state offers some great incentives to help homeowners switch to solar and save money. Here's what you need to know about solar benefits in Illinois:

Federal Solar Investment Tax Credit (ITC)

This is a big one. You can deduct 30% of your total solar system cost from your federal taxes. For an average Illinois solar setup costing $25,800, that's $7,740 back in your pocket.

Illinois Shines Program

This program lets you earn Solar Renewable Energy Credits (SRECs) for the power you generate. Each SREC is worth about $110, and you can sell them. On average, Illinois homeowners make $1,320 a year from this program.

Smart Inverter Rebate

ComEd offers a $300 rebate per kilowatt of solar installed. For a typical 5 kW system, that's a $1,500 rebate.

Property Tax Break

Illinois won't raise your property taxes for adding solar panels to your home. Over your system's lifetime, this could save you around $13,351 in taxes.

Net Metering

Think of this like rollover minutes for your electric bill. You get full retail credit on your utility bill for extra power you generate.

Here's a breakdown of savings for a typical Illinois solar setup:

Incentive	Average Savings
Federal ITC	$7,740
Illinois Shines (per year)	$1,320
Smart Inverter Rebate	$1,500
Property Tax Savings (lifetime)	$13,351

But heads up: Illinois is changing things. After January 1, 2025, net metering will be different. Brian Lips, Senior Policy Analyst at the NC Clean Energy Technology Center, says: "If you live in Illinois and you're considering solar, now's the time!"

To make the most of these benefits:

1. Sign up for net metering before 2025 to lock in current rates for your system's lifetime.
2. Work with an Approved Vendor for the Illinois Shines and Solar for All programs.
3. Use ComEd's solar calculator to see which programs work best for you.
4. File the State of Illinois PTAX-330 form for the property tax exemption.

Illinois is serious about solar. These incentives show they're committed to a greener future. For homeowners, it's a chance to cut energy bills and help the environment. That's a win-win.

What Works and What Doesn't

Not all states offer the same solar incentives. Let's look at the good and bad across the U.S.

California: Solar Leader

California's Self-Generation Incentive Program (SGIP) offers up to $1,000 per kWh for battery storage. This cuts the cost of adding a battery to your solar setup.

But there's a catch. Net metering changes (NEM 3.0) have reduced the value of excess energy sold to the grid. Autumn Johnson, Executive Director of the Arizona Solar Energy Industries Association, says:

"In some states, recent changes to net metering policies mean that people with solar panels earn less when they sell electricity to their local power grid."

Still, California homeowners can save about $106,870 in utility costs over 25 years.

New York: Incentive Mix

New York offers a 25% tax credit on solar equipment (up to $5,000) and a sales tax exemption saving homeowners about $2,002 upfront.

The NY-Sun Megawatt Block Incentive gives rebates between $0.20 and $0.80 per watt installed. But act fast - this program is ending soon.

Massachusetts: 55 Solar Programs

Massachusetts has 55 solar programs. The Solar Massachusetts Renewable Target (SMART) program pays homeowners for their panels' electricity over 10 years.

There's also a 15% tax credit on solar costs (up to $1,000). With other incentives, the average installation cost drops to $9,480.50 after rebates.

Hawaii: Quick Payback

Hawaii has the shortest solar payback period at 2.38 years. With 39 solar programs and an average installation cost of $11,442 after savings, solar is a smart choice for many homeowners.

The Stragglers: Missouri, Mississippi, and Oklahoma

Some states lag behind. Missouri, Mississippi, and Oklahoma offer few to no state-level incentives. Homeowners here rely mostly on the federal tax credit.

Here's how the top performers and stragglers compare:

State	Programs	Avg. Cost (After Savings)	Payback Period	Return Rate
Massachusetts	55	$9,480.50	5.13 years	19.5%
New York	44	$6,519	4.2 years	23.8%
Hawaii	39	$11,442	2.38 years	41.97%
Missouri	Few	N/A	N/A	N/A
Mississippi	None	N/A	N/A	N/A
Oklahoma	Minimal	N/A	N/A	N/A

What Works:

1. Diverse incentives (New York, Massachusetts)
2. Strong net metering policies
3. State tax credits and rebates
4. Property and sales tax exemptions for solar gear

What Doesn't:

1. No state-level incentives (Missouri, Mississippi, Oklahoma)
2. Lower net metering rates without other incentives
3. Hard-to-access incentive programs
4. Short-term or quickly depleted incentives

Solar policies change often. Brian Lips, Senior Policy Analyst at the NC Clean Energy Technology Center, advises:

"If you live in Illinois and you're considering solar, now's the time!"

This applies to many states with strong incentives that might decrease later. Stay informed about your state's programs and act when incentives are high.

Key Takeaways

Let's dive into the solar incentives across different states. Some places are really stepping up their game when it comes to supporting solar energy.

California: Solar Superstar

California's crushing it with solar support:

• A whopping 28.80% of the state's energy comes from solar
• The Self-Generation Incentive Program (SGIP) dishes out up to $200 per kilowatt-hour for battery storage
• Homeowners can pocket about $106,870 in utility savings over 25 years

But heads up: recent changes to net metering (NEM 3.0) have taken a bite out of the value of excess energy sold to the grid.

New York: Solar on a Budget

New York's making solar a no-brainer:

• The cheapest average installation cost after savings: $6,519
• A sweet 25% state tax credit up to $5,000
• The NY-Sun program offers rebates of $0.35 per watt in Upstate New York and $0.15 per watt in Long Island

Massachusetts: Incentive Powerhouse

Massachusetts is going all-in on solar:

• A mind-boggling 55 solar programs available
• Average installation cost of $9,480.50 after rebates
• The SMART Program pays homeowners $0.13 to $0.35 per kWh produced

Hawaii: Fast Track to Profits

Hawaii's got the express lane to solar savings:

• Shortest solar payback period at 2.38 years
• Highest rate of return at 41.97%
• Most affordable state for solar installations compared to median income

South Carolina: Tax Credit Bonanza

South Carolina's serving up some serious tax perks:

• 25% state tax credit on installation costs
• Maximum credit of $3,500 per year
• Available until December 31, 2025

Check out how these solar-friendly states stack up:

State	Programs	Avg. Cost After Savings	Payback Period	Return Rate
Massachusetts	55	$9,480.50	5.13 years	19.5%
New York	44	$6,519	4.2 years	23.8%
Hawaii	39	$11,442	2.38 years	41.97%

But here's the thing: these incentives can change faster than you can say "solar panel." For example, New York's NY-Sun Megawatt Block Program is set to run until 2025 or until the money runs out. And California's SGIP? It's been extended through 2025.

Tamara Jude, a Content Writer, puts it this way: "Massachusetts is our most solar-friendly state." That just goes to show how much these incentive programs can boost solar adoption.

If you're thinking about going solar, here's what you need to do:

1. Dig into your state's specific incentives. They can seriously slash your installation costs.
2. Think about when to make your move. Some programs have expiration dates or decreasing benefits.
3. Don't forget to check out local incentives. They can add even more savings on top of state and federal programs.

Here's a fun fact: even if you live up north where it's not as sunny, you might still be in luck. Many northern states offer killer incentives that make solar a smart investment. As A1 SolarStore puts it, "Some states offer solar incentives so generous that even with little sunshine, your panels will become a truly worthwhile investment."

And don't forget about the federal Investment Tax Credit (ITC). It lets homeowners deduct 30% of their solar system cost from federal taxes. This nationwide perk is sticking around until 2032, making solar more affordable across the board.

FAQs

What state has the best solar incentives?

Massachusetts takes the crown for solar incentives. Here's why:

• 55 solar programs available
• Average installation cost after savings: $9,480.50
• Payback period: 5.13 years
• 15% tax credit on solar costs (up to $1,000)
• Solar Massachusetts Renewable Target (SMART) program: Pays homeowners for solar electricity production over 10 years

What state has the best incentives for solar?

While Massachusetts leads, other states aren't far behind:

1. California

• 28.80% of energy from solar
• Self-Generation Incentive Program (SGIP): Up to $200 per kilowatt-hour for battery storage

2. New York

• Lowest average installation cost after savings: $6,519
• 25% state tax credit up to $5,000

3. Hawaii

• Shortest solar payback period: 2.38 years
• Highest rate of return: 41.97%

What states allow you to sell electricity back to the grid?

Many states have net metering policies. Some standouts:

• Alaska
• Arkansas
• Colorado
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii

"SRECs are a brokerage commodity so the pricing varies, but many brokers offer three- or five-year fixed prices for those who are more risk averse." - Roger Horowitz, solar expert

Net metering policies differ between states. As Solar.com points out:

"Net metering allows for substantial electricity savings of the list of a solar system – often tens of thousands of dollars."

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