State Solar Incentives: An Overview
Federal tax credit status: The federal residential clean energy credit (25D) doesn't apply to expenditures made after December 31, 2025, and the IRS treats an expenditure as made when installation is completed. Systems whose installation is completed in 2026 do not qualify for it. State, local, and utility incentives may still be available, but they change often.
Where to look
DSIRE — DOE calls it "the most comprehensive source of information on incentives and policies that support renewable energy in the United States." Enter your ZIP code.
Common incentive types
- State tax credits
- Rebates from states or utilities
- Property or sales tax exemptions
- Performance payments / renewable energy certificates (RECs) — FTC notes owners may be able to sell RECs
- Subsidized loans — DOE notes some jurisdictions offer below-market rates
- Net metering or export credit policies
Things to know
- Leases/PPAs: incentives go to the system owner, not you (FTC).
- The IRS notes some state "rebates" may be included in federal gross income — ask a tax professional.
- Programs can close or change; confirm status with the program administrator before signing.
- DOE says an experienced local installer should be able to help you claim state and local incentives.
Sources
- IRS, "FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D under Public Law 119-21 (OBBB)" — https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-obbb (accessed Oct 20, 2026)
- DSIRE (N.C. Clean Energy Technology Center, NC State University) — https://www.dsireusa.org/ (accessed Oct 20, 2026)
- U.S. Department of Energy, "Homeowner's Guide to Solar" — https://www.energy.gov/eere/solar/homeowners-guide-going-solar (accessed Oct 20, 2026)
- FTC Consumer Advice, "Solar Power for Your Home" — https://consumer.ftc.gov/articles/solar-power-your-home (accessed Oct 20, 2026)
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Last reviewed 2026-10-20.
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