Solar Incentives by State

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

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:

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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?

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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.

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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.

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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:

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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.

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.

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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:

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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.

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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?

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.

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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:

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

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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:

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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.

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Net Energy Metering (NEM)

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

"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.

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Self-Generation Incentive Program (SGIP)

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

CategoryRebateMax CoverageEquity Resiliency$1,000/kWh100% of system costEquity$850/kWh85% of system costGeneral Market$150-300/kWhVaries

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Property Tax Exclusion

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

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Local Incentives

California's cities and utilities often sweeten the pot.

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:

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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?

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Residential Clean Energy Rebate Program

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

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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.

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:

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To make the most of these perks:

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.

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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:

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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.

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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.

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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.

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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.

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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:

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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!"

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.

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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.

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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.

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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.

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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.

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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.

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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:

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.