WATTROI

State Solar Incentives Guide 2025

Complete list of state rebates, tax credits, and incentives for balcony solar systems by state

State Incentives Overview

Many states offer additional incentives beyond the federal 30% tax credit. These can include state tax credits, rebates, property tax exemptions, and performance-based incentives.

Top States with Solar Incentives

California

  • • Property tax exemption for solar installations
  • • Net metering programs
  • • Local utility rebates (varies by utility)

New York

  • • NY-Sun rebate program
  • • Property tax exemption
  • • Sales tax exemption on equipment

Massachusetts

  • • State tax credit (15% up to $1,000)
  • • Property tax exemption
  • • Net metering

Arizona

  • • Property tax exemption
  • • Sales tax exemption
  • • Net metering

Types of State Incentives

  • State Tax Credits: Reduce state income tax liability
  • Rebates: Direct cash back from state or utility
  • Property Tax Exemptions: Solar doesn't increase property tax
  • Sales Tax Exemptions: No sales tax on solar equipment
  • Net Metering: Credit for excess energy sent to grid
  • Performance-Based Incentives: Payments based on energy production

💡 How to Find Your State Incentives

Check your state's energy office website, local utility company, or use the DSIRE database for the most up-to-date incentive information. Also see our federal tax credit guide.

Frequently Asked Questions

Q: What state incentives are available for solar?

A: Common incentives include state tax credits, rebates, property tax exemptions, sales tax exemptions, net metering, and performance-based incentives. Availability varies by state.

Q: Can I combine federal and state tax credits?

A: Yes! You can claim both the 30% federal tax credit and state tax credits. State credits reduce state tax liability, while federal credit reduces federal tax liability.

Q: How do I find incentives in my state?

A: Check your state energy office website, local utility company, or use the DSIRE database (Database of State Incentives for Renewables & Efficiency) for comprehensive, up-to-date information.

Q: Do incentives apply to balcony solar systems?

A: Most state incentives apply to any grid-tied solar system, including balcony systems. However, some rebates may have minimum system size requirements. Check specific program details.

Q: What is net metering?

A: Net metering allows you to send excess solar energy to the grid and receive credits on your utility bill. These credits offset electricity you use when the sun isn't shining.

Q: Are state incentives taxable income?

A: Rebates may be considered taxable income by the IRS, but tax credits are not. Consult a tax professional to understand how incentives affect your specific tax situation.

Q: Do incentives expire?

A: Yes, many incentives have expiration dates or funding limits. Some programs run out of funding quickly. Apply early and check program status before purchasing your system.

Q: Can renters claim state incentives?

A: Typically, only the property owner can claim tax credits and rebates. However, renters may benefit from utility rebates or net metering if they're the utility account holder.

Q: What is a property tax exemption?

A: A property tax exemption means that adding solar panels won't increase your property tax assessment, even though solar typically increases home value. This saves money over time.

Q: How much can state incentives save me?

A: State incentives can save $500-$5,000+ depending on your state and system size. Combined with the 30% federal credit, total savings can be 40-50% of system cost in some states.