Incentives for Solar Energy: Top 5 Programs in the U.S.

Solar incentives are designed to help offset some of the upfront costs of solar panel installation and help make going solar more affordable for everyone. Although the federal solar tax credit currently is the most significant solar incentive available to most homeowners, there are many other solar programs offered at the state and local level that can significantly lower the cost of solar.

Here are the top 5 solar incentive programs available in the United States:

1. Solar Renewable Energy Certificates (SRECs)

Solar Renewable Energy Certificates (SRECs) are a key financial incentive in many states for solar energy production. One SREC is equal to 1,000 kilowatt-hours (kWh) of solar energy generated. SRECs can be sold or traded and used to offset the cost of going solar.

2. Solar Tax Credits and Incentives

The Solar Investment Tax Credit (ITC) is a federal solar tax credit worth 26% of the cost of your solar panel system. The ITC is available for both residential and commercial solar installations, and there is no limit to the amount of the credit that you can claim. 

3. Solar Rebates 

Solar rebates are offered by many utilities and local governments as an incentive for customers to go solar. Solar rebates are typically offered as a one-time, upfront payment that can be used to offset the cost of your solar panel system. 

4. Solar Equity Funds 

Solar equity funds are typically offered by state governments and are designed to help low-income households and communities benefit from solar. Solar equity funds can be used to offset the cost of installation, purchase solar panels, or both.

5. Property Tax Incentives 

Many states offer property tax incentives for solar, which can significantly lower the cost of going solar. Property tax incentives work by exempting the value of your solar panel system from your property taxes. This incentive can save you hundreds or even thousands of dollars over the course of ownership of your solar panel system. 

To learn more about solar energy incentives in your state, enter your zip code below