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State & Federal Incentives Guide

Solar Incentives
by State

Maximize your savings with state tax credits, rebates, property tax exemptions, and net metering programs. Updated June 2026.

10 States Covered
June 2026 Last Updated
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🏔️ Colorado
Residential & Commercial
State Tax Credit
✗ None — state income tax credit expired
Utility Rebates
✓ Xcel Energy Solar Rewards: $1/watt up to $7,000
RENU Loan: financing up to $75,000
Energy Smart Colorado: 25% up to $2,500 (Pitkin/Eagle Counties)
Property Tax
✓ 100% exemption — solar adds no property tax liability
Sales Tax
✓ 100% exemption on solar equipment & installation
Net Metering
✓ Full retail net metering — Xcel Energy pays retail rate
Avg Monthly Savings $150 – $300
Get Colorado Assessment →
🌴 California
Residential
State Tax Credit
✗ None — state credit expired
Utility Rebates & Programs
✓ SGIP battery rebate: $150/kWh
DAC-SASH: up to $15,000 for qualifying low-income
Solar & Storage Equity Program: $280M fund (<80% AMI)
Property Tax
⚠ Solar value excluded from reassessment — expires Dec 31, 2026. Act now.
Sales Tax
✗ Not available statewide
Net Metering
⚠ NEM 3.0 — bill credits at ~50% of retail rate (export rate varies by time of day)
Avg Monthly Savings $200 – $450
Get California Assessment →
🌵 Arizona
Residential & Commercial
State Tax Credit
✓ 25% of costs up to $1,000 (state income tax)
Utility Rebates
✓ Mohave Electric Cooperative: 5¢/watt up to $2,500
TEP & APS offer additional programs
Property Tax
✓ 100% — no property tax on solar added value
Sales Tax
✓ 100% full exemption on solar equipment
Net Metering
⚠ Net billing at ~50% retail (Resource Comparison Proxy rate)
Avg Monthly Savings $180 – $350
Get Arizona Assessment →
⭐ Texas
Commercial
State Tax Credit
✗ None
Utility Rebates
✓ Austin Energy: $2,500
City of Sunset Valley: $1/watt up to $3,000
AEP Texas SMART Source: up to $6,000
San Marcos: up to $2,500
Property Tax
✓ 100% — must file Form 50-123 with county appraisal district
Sales Tax
✗ Not available
Net Metering
⚠ Varies by utility — no statewide mandate (ERCOT deregulated market)
Avg Monthly Savings $120 – $280
Get Texas Assessment →
🌶️ New Mexico
Residential
State Tax Credit
✓ 10% of system cost up to $6,000 (Solar Market Development)
⚠ Annual statewide cap $12M — first-come, first-served
Utility Rebates
✓ PNM net metering program
Additional local co-op programs available
Property Tax
✓ Solar added value excluded from property taxes
Sales Tax
✓ Full exemption on solar installation
Net Metering
✓ Full retail net metering available
Avg Monthly Savings $100 – $220
Get New Mexico Assessment →
☀️ Florida
Residential
State Tax Credit
✗ None — but no state income tax, so federal credits are more impactful
Utility Rebates
✓ Select utilities offer programs
Dunedin: $2,500 municipal grant
Property Tax
✓ 100% — residential solar + battery exempt
Sales Tax
✓ 100% — solar components exempt from sales and use tax
Net Metering
✓ Net metering available — varies by utility
Avg Monthly Savings $130 – $260
Get Florida Assessment →
🌊 South Carolina
Residential
State Tax Credit
✓ 25% of cost, up to $3,500/year with 10-year carryforward — one of the best state credits in the country
Utility Rebates
Contact us for current utility program availability in your area
Property Tax
✓ Available
Sales Tax
✓ Available
Net Metering
✓ Available through utilities
Avg Monthly Savings $110 – $230
Get SC Assessment →
🌿 Alabama
Commercial
State Tax Credit
✗ None
Utility Rebates
Alabama Power has limited programs — federal incentives & utility savings are primary drivers
Property Tax
⚠ Limited — available for residents 65+ up to $12,000
Sales Tax
✗ Not available
Net Metering
⚠ Limited — varies significantly by utility
Avg Monthly Savings $90 – $180
Get Alabama Assessment →
🌾 Mississippi
Commercial
State Tax Credit
✗ None
Utility Rebates
⚠ Mississippi Power & Entergy MS both have solar programs — contact us for current availability
Property Tax
⚠ Limited programs available
Sales Tax
⚠ Limited programs
Net Metering
⚠ Available through some utilities
Avg Monthly Savings $80 – $160
Get Mississippi Assessment →
🌊 Michigan
Residential
State Tax Credit
✗ None
Utility Rebates
✓ Lansing BWL: $500/kW up to $2,000
HOA cannot ban solar (law passed July 2024)
Property Tax
⚠ Limited programs available
Sales Tax
⚠ Limited
Net Metering
✓ Full net billing through Distributed Generation Program (DTE, Consumers Energy, etc.)
Avg Monthly Savings $80 – $160
Get Michigan Assessment →
🇲🇴 Missouri
Residential & Commercial
State Tax Credit
✗ No state income tax credit currently available
Utility Rebates
✓ Ameren Missouri & Evergy offer periodic solar rebates — check current availability
Property Tax
✓ 100% property tax exemption on added solar value
Sales Tax
✓ Solar equipment exempt from state sales tax
Net Metering
✓ Net metering required for utilities over 2MW — retail rate credit
Avg Monthly Savings $90 – $160
Get Missouri Assessment →
🇦🇺 Ohio
Residential & Commercial
State Tax Credit
✗ No state solar tax credit — federal 30% ITC applies
Utility Rebates
✓ AEP Ohio & Duke Energy offer solar incentive programs — amounts vary by program cycle
Property Tax
✓ 100% exemption — solar installation excluded from property valuation
Sales Tax
✓ Solar equipment exempt from Ohio sales & use tax
Net Metering
✓ Net metering available — credits applied at retail rate
Avg Monthly Savings $100 – $180
Get Ohio Assessment →
🗽 Pennsylvania
Residential & Commercial
State Tax Credit
✗ No state income tax credit — federal 30% ITC applies
Utility Rebates & SREC
✓ PA SREC market — earn credits per MWh produced, typically $20–$40/SREC
PECO & PPL Electric offer additional rebate programs
Property Tax
✓ Solar installations excluded from property tax assessments
Sales Tax
✓ Solar energy systems exempt from PA sales tax
Net Metering
✓ Net metering required statewide — excess credited at retail rate
Avg Monthly Savings $110 – $200
Get Pennsylvania Assessment →
🦆 Massachusetts
One of the Best in the US
State Tax Credit
✓ 15% state tax credit — up to $1,000 per system
SMART Program & SREC II
✓ MA SMART Program — fixed incentive payments per kWh produced for 10 years
SREC II market still active for legacy systems
Property Tax
✓ 20-year property tax exemption on solar installations
Sales Tax
✓ Full sales tax exemption on solar equipment
Net Metering
✓ Net metering statewide — retail rate credits, virtual net metering available
Avg Monthly Savings $150 – $280
Get Massachusetts Assessment →
Quick Comparison

Compare States at a Glance

State State Tax Credit Sales Tax Exempt Property Tax Exempt Net Metering Rating
Colorado ✗ ✓ ✓ ✓ Full Retail ★★★★★
California ✗ ✗ ⚠ Expires 2026 ⚠ NEM 3.0 ★★★★☆
Arizona ✓ 25% / $1k ✓ ✓ ⚠ ~50% Retail ★★★★★
Texas ✗ ✗ ✓ ⚠ Varies ★★★☆☆
New Mexico ✓ 10% / $6k ✓ ✓ ✓ Full Retail ★★★★★
Florida ✗ ✓ ✓ ✓ ★★★★☆
South Carolina ✓ 25% / $3.5k ✓ ✓ ✓ ★★★★★
Alabama ✗ ✗ ⚠ Limited ⚠ Limited ★★☆☆☆
Mississippi ✗ ⚠ Limited ⚠ Limited ⚠ Limited ★★☆☆☆
Michigan ✗ ⚠ Limited ⚠ Limited ✓ Net Billing ★★★☆☆

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Data current as of June 2026. Incentive programs change frequently. Always verify current availability with your installer. Legacy Energy will identify all available incentives during your free assessment.

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