Which states have the best solar incentives?

Top state solar incentive programs include: New York (25% state tax credit up to $5,000), Massachusetts (15% state credit, MassSave rebates), Maryland (state tax credit + SREC income), New Jersey (SREC market + property tax exemption), California (NEM 3.0 net metering plus local utility rebates), and Illinois (Illinois Shines SREC program). Programs change frequently — check DSIRE.org for current incentives in your state.

Are solar incentives in addition to the federal 30% tax credit?

State incentives can still provide substantial savings even without the federal ITC (which expired December 31, 2025 for residential systems). A New York homeowner can still get a 25% state credit up to $5,000. States also commonly offer property tax and sales tax exemptions on solar. Always verify current programs at dsireusa.org before purchasing.

Which states have the best solar rebates in 2025?

Top state solar incentive programs include New York (25% state tax credit up to $5,000), Massachusetts (15% state credit plus SMART program payments), New Jersey (SREC II program), California (various utility rebate programs), and Connecticut (ZREC and state incentives). Many states also have property tax exemptions for solar and sales tax exemptions on equipment.

Do state solar rebates reduce my federal tax credit?

Utility rebates reduce your federal tax credit basis (you subtract the rebate amount before calculating the 30% ITC for applicable years). State tax credits do not reduce your federal cost basis but may affect your state taxes. The interaction of multiple incentives can be complex — a tax professional familiar with solar incentives can optimize your total benefit.

State Solar Rebate Calculator

Calculate the combined value of all your solar incentives — federal tax credit, state rebate, and utility rebate — and see exactly what your net system cost will be after stacking every available incentive.

Your State

System Cost ($)

State Rebate Amount ($)

Utility Rebate ($/W)

System Size (kW)

State values are estimates — verify current programs at dsireusa.org. You can edit the rebate amount above manually.

About This Calculator

The State Solar Rebate Calculator adds up every layer of incentive available to a solar homeowner — the federal Investment Tax Credit, state-level rebates or tax credits, and utility company rebates — so you can see your true net cost in one place. Many homeowners underestimate how much these incentives stack. In a state like New York with a 25% state credit (capped at $5,000) and a utility rebate, total incentives can meaningfully reduce gross system cost. While the residential federal ITC (Section 25D) expired December 31, 2025, state and utility incentives remain available in many states.

It is important to understand that the federal tax credit is applied to the gross system cost before state rebates reduce the basis in most cases — but upfront utility rebates reduce your system cost basis for federal ITC purposes in some circumstances. Tax treatment varies by incentive type and state; a tax professional can clarify the correct order of operations for your specific situation. This calculator uses a simplified model where all incentives are applied to gross cost independently, which is a reasonable approximation for most homeowners.

To find available incentives in your state, the most comprehensive resource is the DSIRE database at dsireusa.org — a federally funded database of every state, utility, and local solar incentive in the country. Search your ZIP code to see active programs, eligibility requirements, and current funding availability. Utility rebates in particular have limited annual budgets and can be exhausted mid-year — always verify current availability before counting on them in your financial projections.

Stacking incentives correctly is one of the highest-value steps in the solar purchasing process. A homeowner who claims only the federal ITC but misses a $1,000 state rebate and a $0.10/W utility rebate on an 8 kW system leaves $1,800 on the table. This calculator makes sure you account for every dollar available before signing a contract or arranging financing.

Calculations based on NREL solar modeling data and industry-standard assumptions, built and maintained by the independent SolarToolsOnline research team.

Estimates only — not financial, tax, or legal advice. Verify important results with a licensed solar installer or financial professional before making decisions.