Solar Incentives by State (2026)
With the federal residential credit gone (expired Dec 31, 2025), state-level incentives are now the main way to shorten solar payback. Every state is different: tax credits, upfront rebates, SREC markets, property-tax and sales-tax exemptions. Here is the full picture for all 50 states, with sources and as-of dates.
2026 rule change: the 30% federal residential credit (Section 25D) no longer applies to homeowner-owned systems installed in 2026. Commercial 48E credit still exists for lease/PPA providers through 2027 — but that benefit goes to the system owner (the lessor), not the homeowner.
All 50 States
| State | Rate (¢/kWh) | State Tax Credit | Rebates / Performance | SREC | Prop/Sales Tax Exempt |
|---|---|---|---|---|---|
| Massachusetts | 30.1 | 15% (cap $1,000) | SMART ~$0.03/kWh × 20yr (income-eligible ~$0.06) | $30/MWh | Property + Sales |
| Connecticut | 29.8 | — | RSIP rebate | — | — |
| Maine | 29.7 | — | — | — | — |
| New Hampshire | 26.8 | — | — | — | — |
| Rhode Island | 29.5 | — | — | — | — |
| Vermont | 23.9 | — | — | — | — |
| New York | 29.2 | 25% (cap $5,000) | NY-Sun $0.20–0.40/W rebate | — | Property |
| New Jersey | 23.3 | — | SuSI TREC market | $85/MWh | Property + Sales |
| Pennsylvania | 20.8 | — | — | $25/MWh | — |
| Illinois | 19.1 | — | Adjustable Block REC $65–85/MWh | $75/MWh | Property |
| Indiana | 17.0 | — | — | — | — |
| Ohio | 18.4 | — | — | $8/MWh | Property |
| Michigan | 20.7 | — | — | — | Property |
| Wisconsin | 18.9 | — | — | — | — |
| Minnesota | 15.7 | — | — | — | — |
| Iowa | 13.3 | — | — | — | — |
| Missouri | 12.8 | — | — | — | — |
| Kansas | 15.1 | — | — | — | — |
| Nebraska | 12.6 | — | — | — | — |
| North Dakota | 11.9 | — | — | — | — |
| South Dakota | 14.2 | — | — | — | — |
| Florida | 15.4 | — | Battery rebates | — | Property + Sales |
| Georgia | 14.9 | — | — | — | — |
| North Carolina | 14.9 | — | — | — | Property + Sales |
| South Carolina | 16.2 | — | — | — | — |
| Virginia | 16.6 | — | — | — | — |
| Maryland | 21.2 | — | $1,000 residential grant | $65/MWh | Property |
| Delaware | 17.4 | — | — | $30/MWh | — |
| District of Columbia | 24.6 | — | — | $40/MWh | — |
| West Virginia | 15.4 | — | — | — | — |
| Alabama | 16.6 | — | — | — | — |
| Kentucky | 14.4 | — | — | — | — |
| Mississippi | 15.5 | — | — | — | — |
| Tennessee | 13.9 | — | — | — | — |
| Texas | 16.1 | — | — | — | Property |
| Oklahoma | 13.1 | — | — | — | — |
| Arkansas | 13.3 | — | — | — | — |
| Louisiana | 13.5 | — | — | — | — |
| Arizona | 15.6 | 25% state income tax credit | — | — | Property |
| Colorado | 16.5 | — | Xcel rebates | — | Property + Sales |
| New Mexico | 14.8 | — | — | — | Property + Sales |
| Nevada | 14.0 | — | LISEP low-income program | — | Property |
| Utah | 13.1 | — | — | — | — |
| Idaho | 12.5 | — | — | — | — |
| Montana | 13.6 | — | — | — | — |
| Wyoming | 13.7 | — | — | — | — |
| California | 32.8 | — | SGIP Battery rebates | — | Property |
| Oregon | 15.1 | — | — | — | Property |
| Washington | 14.3 | — | — | — | Sales |
| Alaska | 26.7 | — | — | — | — |
| Hawaii | 44.6 | — | — | — | — |
Strongest State Programs (2026)
- New York: 25% state tax credit (cap $5,000) + NY-Sun $0.20–0.40/W rebate — arguably the strongest stack in the country.
- Massachusetts: 15% credit (cap $1,000) + SMART performance payments (~$0.03/kWh for 20 years).
- New Jersey: SuSI TREC market (~$85/MWh) + full sales & property tax exemptions.
- Maryland: SRECs (~$50–80) + $1,000 residential grant + 1.5× certified SREC bonus before 2028.
- Illinois: Adjustable Block RECs (~$65–85/MWh for 15 years) + property tax exemption.
- Arizona: 25% state income tax credit.
- California: SGIP battery rebates — critical under NEM 3.0.
Incentive data sourced from DSIRE (dsireusa.org) and state energy offices, verified 2026. Programs have budgets and caps that close — always confirm current status with the administering authority.
Keep going
Free tools and 50-state data that answer the next question.
Solar ROI Calculator
Apply these credits to a real system and see payback.
Open tool →2026-27 Incentive Changes
Every dated state policy change that affects value.
Open tool →Payback by State
Where the strongest incentive stacks rank on payback.
Open tool →SREC Income Calculator
Turn REC/SREC programs into annual income.
Open tool →Net Metering by State
Export rules that often matter more than a rebate.
Open tool →All Solar Calculators
Every free PVFig calculator.
Open tool →