Solar Incentives by State

We've put together a list of these local solar incentives, organized by state, to help you take full advantage of the opportunities available to you

Solar Incentives by State

We've put together a list of these local solar incentives, organized by state, to help you take full advantage of the opportunities available to you

Thanks to the Inflation Reduction Act, the Federal Solar Investment Tax Credit remains at an impressive 30% until the end of 2032. This is a significant step toward making solar energy more affordable for homeowners across the nation.

But there's even more good news. You may be eligible for additional solar incentives offered by your state, local municipality, or utility company, further lowering the overall cost of installing a solar system on your property. Remember, every dollar you save on your solar installation is a dollar less you'll spend on energy bills in the long run.

We've compiled a list of these local solar incentives and rebate programs, organized by state, to help you take full advantage of the opportunities available to you. Please keep in mind that this resource is continually evolving as new incentives and programs emerge. If you don't find your state listed below, don't worry! Connect with an Energy Advisor to explore the solar incentives specific to your area and make the most informed decision for your solar investment.

California Solar Incentives

Owing to its high energy costs and abundant sunshine, California stands out as an ideal state for solar energy adoption. Interestingly, there are relatively fewer solar incentives in California compared to some states, mainly because solar power is already significantly more cost-effective than purchasing electricity from traditional utility companies. Nevertheless, it's worth noting several California solar incentives that can make your transition to solar energy even more appealing:

State Incentives:

Property Tax Exemption: California offers a property tax exemption for the increased value contributed by solar equipment installations.

Self-Generation Incentive Program (SGIP): This program provides rebates for battery storage, offering up to $1,000 per kilowatt-hour (kWh) of capacity installed, further enhancing your solar energy system's efficiency and reliability.

Property Assessed Clean Energy (PACE) Financing: PACE financing is available to assist in financing your solar project, making it more accessible and budget-friendly.

Local Government Incentives:

While we couldn't locate specific solar incentives from city and county governments at this time, it's advisable to reach out to your local government authorities for potential localized benefits or programs.

Utility-Based Incentives:

Several utilities in California also offer solar incentives to encourage renewable energy adoption:

Rancho Mirage Energy Authority: This utility provides a $500 rebate for qualifying residential solar installations.

Sacramento Municipal Utility District (SMUD): SMUD offers a $150 stipend for residential solar installations, making the switch to solar power even more enticing for homeowners.

Non-Profit Incentives:

For those in need of financial assistance, GRID Alternatives, a California-based non-profit organization, offers noteworthy programs:

Single-Family Affordable Solar Homes (SASH): This program aims to provide no-cost solar installations to eligible low-income households.

Disadvantaged Communities – Single-Family Solar Homes (DAC-SASH): Focusing on disadvantaged communities, DAC-SASH extends the benefits of solar energy to those who may need it the most.

Low-Income Weatherization Program (LIWP): LIWP complements solar initiatives by offering weatherization improvements to low-income households, further reducing energy consumption and costs.

Florida Solar Incentives

With its abundant sunshine and a thriving rooftop solar industry, Florida is the perfect location for embracing solar energy. And as an added bonus, a selection of state and local incentives sweeten the deal.

State Incentives:

Property Tax Exemption: Florida extends a property tax exemption covering 100% of the value contributed by solar and/or battery storage installations. This not only promotes solar adoption but also ensures you won't be burdened with increased property taxes due to your sustainable choice.

Sales Tax Exemption: Solar energy systems in Florida are also eligible for a sales tax exemption. This means that when you invest in solar, you won't be paying extra in sales tax, making the transition to solar even more cost-effective.

Property Assessed Clean Energy (PACE) Financing: PACE financing is available in Florida to assist you in financing your solar project, making it more accessible and budget-friendly.

Net Metering at Retail Rate: Florida's net metering policy allows you to earn credits for excess solar energy your system produces, which you can later use when your system isn't generating electricity. These credits are valued at the retail rate, maximizing the value of your solar investment.

Local Government Incentives:

In addition to state incentives, some local governments in Florida offer their own solar incentives to support their residents in going solar. These programs include:

Boynton Beach Energy Edge Rebate Program: This program provides rebates of up to $1,500 to encourage residents in Boynton Beach to invest in solar energy, further reducing the upfront cost of solar installations.

Dunedin Solar Energy Grant Program: Dunedin offers a Solar Energy Grant Program that can provide up to $2,500 in grants, making solar adoption more financially attractive for its residents.

Texas Solar Incentives

With its abundant sunshine and minimal shading, Texas is an ideal canvas for the installation of rooftop solar systems. However, it's important to note that the majority of incentives are administered at the local and utility levels rather than the state level. Therefore, it's prudent to invest a little extra time in researching the incentives available in your specific area.

State Incentives:

Texas provides a solitary state-level solar incentive, which is a property tax exemption for the added value that solar energy systems bring to your home. To claim this exemption, homeowners are required to complete and submit Form 10-123.

Local Government Incentives:

The City of Sunset Valley stands out with a commendable solar incentive, offering a rebate of $1.00 per Watt of solar capacity installed, with a cap of $3,000. While we couldn't locate additional incentives at the local government level, it's advisable to inquire with your city and county officials for any localized incentives that may be available.

Utility Incentives:

In Texas, the lion's share of solar incentives is administered by utility companies. These include:

Austin Energy Rebate: Austin Energy offers a substantial rebate worth $2,500, making solar adoption even more financially attractive for residents in the Austin area.

San Marco Electric Utility (SMTX) Solar PV Rebate: SMTX provides a solar PV rebate program that can be worth up to $2,500, encouraging residents to invest in solar power.

AEP Texas North Company SMART Source Solar PV Program Rebate: This program offers rebates of up to $6,000, providing a significant financial incentive for residents in the northern part of the state.

AEP Texas Central Company SMART Source Solar PV Program Rebate: Similar to its northern counterpart, this program provides rebates worth up to $5,000 to residents in central Texas.

Oncor Electric Delivery Residential Solar Program: Oncor Electric offers rebates for residential solar installations, especially when paired with energy storage.

Garland Power & Light Solar Production Buyback: Garland Power & Light purchases excess solar production at a rate of $0.0669 per kilowatt-hour (kWh), further enhancing the financial benefits of solar power.

Denton Municipal Electric (DME) Solar Rebate: DME offers a solar rebate program with an average award amount of $4,000, making solar installations more affordable for Denton residents.

New Braunfels Utilities Solar Rebate: New Braunfels Utilities provides rebates of up to $3,000 to support residents in adopting solar energy.


In conclusion, these three states, California, Florida, and Texas, each present unique opportunities and incentives for homeowners and businesses looking to harness the power of solar energy.

Ultimately, the decision to go solar should be based on a comprehensive assessment of your specific circumstances, energy needs, and available incentives. With these incentives and abundant sunshine, homeowners and businesses in these states have an excellent opportunity to reduce energy costs, support clean energy initiatives, and contribute to a sustainable future.