🇺🇸 Solar Rebates &amp; Incentives in United States

30% of system cost (passed through as lower lease/PPA rates)

The business-claimed 48E Investment Tax Credit remains available for third-party-owned residential solar installations such as leases and power purchase agreements (PPAs). Solar companies claim the 30% credit and pass savings to homeowners through lower lease or PPA rates. This credit continues through the end of 2027.

State& Territory Programs

Many states offer additional solar rebates and incentives on top of federal programs.

California

California Self-Generation Incentive Program (SGIP)

California Public Utilities Commission (CPUC)

$1,100/kWh for storage, $3,100/kW for paired solar

California's SGIP provides incentives for distributed energy resources including solar-paired battery storage. The main program budgets closed to new applicants as of December 31, 2025. The RSSE AB 209 budget ($280M state-funded) remains for income-qualified households, offering $1,100/kWh for storage and $3,100/kW for paired solar.

Texas

Austin Energy Solar Rebate

Austin Energy

Up to $2,500

Austin Energy offers a rebate of up to $2,500 for residential solar installations in Austin, Texas. Homeowners must complete Austin Energy's solar education course to qualify. Texas also provides a state property tax exemption for the added value of solar panels.

New York

New York State Solar Energy System Equipment Credit (SESEC)

New York State Department of Taxation and Finance

25% of system cost, up to $5,000

New York State offers a personal income tax credit equal to 25% of the cost of a solar energy system, up to $5,000. The credit directly reduces state income tax owed dollar-for-dollar, and unused amounts can be carried forward for up to five additional tax years.

NY-Sun Megawatt Block Incentive Program

NYSERDA (New York State Energy Research and Development Authority)

$0.20-$0.80 per watt ($1,400-$5,600 for typical 7kW system)

New York's primary solar rebate administered by NYSERDA. Rebates are applied directly at point of sale by installers through a Megawatt Block structure. Standard residential rates are approximately $0.20-$0.40/watt depending on region, with higher rates for low-income households at $0.80/watt.

Arizona

APS Residential Battery Pilot Program

Arizona Public Service (APS)

Up to $3,750

Arizona Public Service (APS) offers incentives of up to $3,750 for customers who purchase a home solar battery system and enroll in the Residential Battery Pilot program. Participants allow APS to dispatch stored energy during peak demand periods in exchange for the upfront incentive.

Arizona Residential Solar Energy Credit

Arizona Department of Revenue

25% of system cost, up to $1,000

Arizona offers a state income tax credit equal to 25% of the cost of a solar energy system, capped at $1,000. If tax liability is less than the credit in the installation year, unused credit can be rolled over for up to five consecutive years. The state also provides sales tax and property tax exemptions for solar installations.

Massachusetts

Solar Massachusetts Renewable Target (SMART) 3.0

Massachusetts Department of Energy Resources (DOER)

Performance-based incentive rate (varies by capacity block and project type)

Massachusetts' redesigned solar incentive program provides performance-based incentives to solar system owners. SMART 3.0 launched with 900 MW capacity in Program Year 2025, followed by 600 MW in Program Year 2026. The program offers flat incentive rates for residential customers with enhanced rates for low-income households.

Colorado

Xcel Energy Solar*Rewards Program

Xcel Energy

$1/watt for income-qualified (up to $6,000 for 6kW system)

Xcel Energy's Solar*Rewards program provides performance-based incentives for customers who install on-site solar in Colorado. Income-qualified customers and those in disproportionately impacted communities receive an upfront rebate of $1/watt. Colorado also offers sales tax and property tax exemptions for solar.