Solar Incentives — All 50 States
Solar Tax Credits and Incentives by State 2025
Every homeowner qualifies for the 30% federal solar Investment Tax Credit (ITC). Most states add additional rebates, credits, and exemptions. Find your state below to see what you can save.
Federal ITC — 30% for All States
The 30% Investment Tax Credit applies to all U.S. homeowners regardless of state. On a $20,000 system you save $6,000 off your federal tax bill. Valid through 2032 at full 30% rate.
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State Solar Incentives — Select Your State
California
CA$17,000–$22,000 avg system cost
✓ Net metering
Texas
TX$14,000–$20,000 avg system cost
✓ Net metering
Florida
FL$13,000–$18,000 avg system cost
✓ Net metering
New York
NY$16,000–$22,000 avg system cost
✓ Net metering
Arizona
AZ$13,000–$18,000 avg system cost
✓ Net metering
Colorado
CO$14,000–$19,000 avg system cost
✓ Net metering
Massachusetts
MA$16,000–$22,000 avg system cost
✓ Net metering
New Jersey
NJ$14,000–$20,000 avg system cost
✓ Net metering
Hawaii
HI$18,000–$25,000 avg system cost
✓ Net metering
Illinois
IL$13,000–$18,000 avg system cost
✓ Net metering
Nevada
NV$12,000–$17,000 avg system cost
✓ Net metering
North Carolina
NC$12,000–$17,000 avg system cost
✓ Net metering
Virginia
VA$13,000–$18,000 avg system cost
✓ Net metering
Maryland
MD$13,000–$18,000 avg system cost
✓ Net metering
Oregon
OR$12,000–$17,000 avg system cost
✓ Net metering
Understanding Solar Incentives
Federal Investment Tax Credit (ITC)
The ITC lets you deduct 30% of your total solar installation cost from your federal income taxes. It applies to panels, labor, inverters, batteries, and wiring. There is no maximum cap. Available through 2032.
State Tax Credits
States like New York (25%, up to $5,000), Hawaii (35%), and Arizona (25%, up to $1,000) offer additional income tax credits on top of the federal ITC. These are applied to your state tax return separately.
Net Metering
When your solar panels produce more power than you use, net metering credits the excess back to your utility bill. Most states mandate net metering, though rates and rules vary significantly.
Property & Sales Tax Exemptions
Most states exempt solar installations from property tax reassessment — so adding solar doesn't raise your property taxes. Many also waive state sales tax on solar equipment purchases, saving 5–10% upfront.