Solar Installation Incentives
Explore some of the federal and state incentives that may be available to you with your residential or commercial solar installation.
Residential Incentives
In Every State
The Inflation Reduction Act and other legislation has made possible many federal, state, and local tax incentives with installation of a residential or commercial solar system. Our solar consultants can let you know about incentives and rebates available to you, but it’s also recommended that you check with your accountant and other professional advisors, as well as your utility company and local municipality about credits and incentives that may be currently available to you in your area.
Taxpayers may be able to claim a tax credit on their Federal Income Tax return of 30% for qualified expenditures on a solar system that provides electricity to their residence. Business taxpayers may be eligible for a similar tax credit of 30% or more, depending on the circumstances, on a solar system that they own. Individual or business tax credits may be possible to carry forward to offset future tax liabilities if there is insufficient tax liability in the solar system’s first year of operation. Consult your tax advisor to determine whether this credit is available to you and for what amount.
-
Energy Community Tax Credit Bonus
Businesses purchasing new solar systems located in energy communities may be eligible for an additional 10% tax credit. Wondering if you might be in such a community? Check out this map. -
Direct Pay
Certain types of tax-exempt organizations, state and local government entities, or rural electric cooperatives may be eligible to receive the Federal Income Tax Credit as a direct payment from the IRS.
Colorado Residential Incentives
Local utilities in cities such as Fort Collins may have additional solar incentives that property owners can take advantage of to save even more. Below is an example of a recent incentive. See the Fort Collins Utilities webpage for more information.
- Maximum Incentive - $1,000 and up to $1,500 for battery installation
- Incentive Rebate Rate - $200/kW
Full retail rate net metering may provide customers with credits for the excess generated energy from their solar system. If your solar system produces more energy than you’re using, you may get credits applied to your monthly electricity bill at the discretion of your utility provider.1 Net metering can vary, depending on your utility provider.
For any new solar PV system installed, the assessed value of the system may be exempt from your property taxes.
This program may be available to Colorado Xcel Energy residential customers who have been income qualified and are in a disproportionately impacted area. Below is an example of a recent incentive. See the Xcel Energy website for up-to-date information.
- System Size: Up to 7kW
- Upfront Incentive: $1/W
- No Deposit
Illinois Residential Incentives
Eligible low-income homeowners may be able to get access to solar panels in Illinois with $0 upfront costs. To learn more, visit ILSFA’s website.
Full retail rate net metering may provide customers with credits for the excess generated energy from their solar system. If your solar system produces more energy than you’re using, you may get credits applied to your monthly electricity bill at the discretion of your utility provider.1 Net metering can vary, depending on your utility provider.
SRECs are certificates earned as solar electricity is produced. For every megawatt hour (MWh) your system produces, you may receive one SREC. Under current law, certain utilities in Illinois may be willing to pay in advance for some or even all the SRECs that your system is expected to produce over a 15-year period. Such SREC income can be significant, even on an after-tax basis.
Indiana Residential Incentives
If your solar system produces more energy than you’re using, you may get credits applied to your monthly electricity bill at the discretion of your utility provider.1 Net metering can vary, depending on your utility provider.
For any new solar PV system installed, the assessed value of the system may be exempt from your property taxes.
Iowa Residential Incentives
If your solar system produces more energy than you’re using, you may get credits applied to your monthly electricity bill at the discretion of your utility provider.1 Net metering can vary, depending on your utility provider. MidAmerican Energy and Interstate Power and Light customers may be eligible for net metering if their solar system is under 500 kW. Credits are capped and expire annually. Municipal and cooperative electric utilities may not offer net metering.
For any new solar PV system installed, the assessed value of the system may be exempt from your property taxes.
Missouri Residential Incentives
Local utilities may have additional solar incentives that property owners can take advantage of to save even more. Below is an example of a recent incentive. See the Ameren website for up-to-date information.
- $.25/watt rebate (expires 12/31/2023)
- Residential <25 kW
Local utilities may have additional solar incentives that property owners can take advantage of to save even more. Below is an example of a recent incentive. See the City of Columbia website for up-to-date information.
- 0-10 kW: $375-$625 per kW
- 10-50 kW: $300-$500 per kW
Local utilities may have additional solar incentives that property owners can take advantage of to save even more. Below is an example of a recent incentive. See the City of Columbia website for up-to-date information.
- $.25/watt rebate (expires 12/31/2023)
- <150 kW
Full retail rate net metering may provide customers with credits for the excess generated energy from their solar system. If your solar system produces more energy than you’re using, you may get credits applied to your monthly electricity bill at the discretion of your utility provider.1 Net metering can vary, depending on your utility provider.
Nebraska Residential Incentives
If your solar system produces more energy than you’re using, you may get credits applied to your monthly electricity bill at the discretion of your utility provider.1 Net metering can vary, depending on your utility provider.
New York Residential Incentives
The New York Solar Equipment Tax Credit may reduce your state tax liability by 25% of your qualified solar energy system equipment expenditures, with a credit limit of $5,000.
New York’s Megawatt Block Incentive could provide further incentives for residential solar energy available under New York’s ambitious NY-Sun Initiative. See below for examples of recent incentives, which vary by utility. See the NY-Sun website for up-to-date information.
- The incentive values range from $0.20/watt (ConEdison) to $0.50/watt (Upstate).
Full retail rate net metering may provide customers with credits for the excess generated energy from their solar system. If your solar system produces more energy than you’re using, you may get credits applied to your monthly electricity bill at the discretion of your utility provider.1 Net metering can vary, depending on your utility provider.
Commercial Incentives
Colorado Commercial Incentives
Local utilities in cities such as Fort Collins may have additional solar incentives that businesses can take advantage of to save even more. Below is an example of a recent incentive. See the Fort Collins Utilities website for up-to-date information.
- Commercial customers can receive rebates up to $50,000. Rebate amounts are calculated based on $0.50/watt of DC system generation capacity and include a 20-year Renewable Energy Credit (REC) assignment to Fort Collins Utilities.
This program may be available to Colorado Xcel Energy commercial customers. Below is an example of a recent incentive. See the Xcel Energy website for up-to-date information.
- Pay-for-performance incentive:
- C&I Tier 1 (8 kW–250 kW): $0.04/kWh
- C&I Tier 2 (250.1 kW–500 kW): $0.0375/kWh
- C&I Tier 3 (500.1 kW–1 MW): $0.035/kWh
Full retail rate net metering may provide customers with credits for the excess generated energy from their solar system. If your solar system produces more energy than you’re using, you may get credits applied to your monthly electricity bill at the discretion of your utility provider.1 Net metering can vary, depending on your utility provider.
For any new solar PV system installed, the assessed value of the system may be exempt from your property taxes.
Illinois Commercial Incentives
Full retail rate net metering may provide customers with credits for the excess generated energy from their solar system. If your solar system produces more energy than you’re using, you may get credits applied to your monthly electricity bill at the discretion of your utility provider.1 Net metering can vary, depending on your utility provider.
SRECs are certificates earned as solar electricity is produced. For every megawatt hour (MWh) your system produces, you may receive one SREC. Under current law, certain utilities in Illinois may be willing to pay in advance for some or even all the SRECs that your system is expected to produce over a 15-year period. Such SREC income can be significant, even on an after-tax basis.
Indiana Commercial Incentives
If your solar system produces more energy than you’re using, you may get credits applied to your monthly electricity bill at the discretion of your utility provider.1 Net metering can vary, depending on your utility provider.
For any new solar PV system installed, the assessed value of the system may be exempt from your property taxes.
Iowa Commercial Incentives
If your solar system produces more energy than you’re using, you may get credits applied to your monthly electricity bill at the discretion of your utility provider.1 Net metering can vary, depending on your utility provider. MidAmerican Energy and Interstate Power and Light customers may be eligible for net metering if their solar system is under 500 kW. Credits are capped and expire annually. Municipal and cooperative electric utilities may not offer net metering.
For any new solar PV system installed, the assessed value of the system may be exempt from your property taxes.
Missouri Commercial Incentives
Local utilities may have additional solar incentives that property owners can take advantage of to save even more. Below is an example of a recent incentive. See the City of Columbia website for up-to-date information.
- 10-50 kW: $300-$500 per kW
- 50-100 kW: $150-$250 per kW
- More than 100 kW: No additional rebates offered
Full retail rate net metering may provide customers with credits for the excess generated energy from their solar system. If your solar system produces more energy than you’re using, you may get credits applied to your monthly electricity bill at the discretion of your utility provider.1 Net metering can vary, depending on your utility provider.
Local utilities may have additional solar incentives that property owners can take advantage of to save even more. Below is an example of a recent incentive. See the Ameren website for up-to-date information.
- $.25/watt rebate (expires 12/31/2023)
- Commercial <150 kW
Nebraska Commercial Incentives
If your solar system produces more energy than you’re using, you may get credits applied to your monthly electricity bill at the discretion of your utility provider.1 Net metering can vary, depending on your utility provider.
New York Commercial Incentives
The New York Solar Equipment Tax Credit may reduce your state tax liability by 25% of your qualified solar energy system equipment expenditures, with a credit limit of $5,000.
Full retail rate net metering may provide customers with credits for the excess generated energy from their solar system. If your solar system produces more energy than you’re using, you may get credits applied to your monthly electricity bill at the discretion of your utility provider.1 Net metering can vary, depending on your utility provider.
The material on this website does not constitute and should not be relied on for tax, legal, investment, or accounting advice. You should consult your own tax, legal, and other professional advisors for such advice, with due consideration given to the risks of investing in renewable energy products and your own individual circumstances. The use of terms such as “may”, “will”, “should”, “expect”, “anticipate”, “target”, “project”, “estimate”, “intend”, “continue”, “believe”, or other comparable terms are not guarantees of future performance and undue reliance should not be placed on them. Due to various risks and uncertainties, actual events or results may differ.