Solar Incentive Types Explained
Six categories of incentive cover virtually every dollar of solar savings available to US homeowners. Each works differently, claims differently, and combines with the federal 30% credit on different terms.
The 30% Residential Clean Energy Credit. Available nationwide, no income cap, locked through 2032.
Net metering credits homeowners for excess solar energy sent back to the grid, often at retail or near-retail rates.
Solar Renewable Energy Certificates (SRECs) are tradable credits earned for every megawatt-hour of solar electricity produced.
A solar property tax exemption excludes the added home value from solar from your annual property tax assessment.
Solar sales tax exemptions remove state and local sales tax from solar equipment purchases at the point of sale.
Several states offer income tax credits that stack on top of the federal 30% Investment Tax Credit.
Many electric utilities offer upfront rebates that lower the cost of solar installation, typically distributed first-come, first-served.