State Solar Tax Incentives Guide (Part 1)

Homeowners converting to solar are rightfully looking for ways to get the most out of their investment, in many cases through tax credits and other solar incentives.

Solar users can take advantage of the solar ITC when filing federal taxes, however, some states also provide additional incentives for new solar system purchases to their residents.

In this article we’ll cover in more detail solar tax incentives in the following states:

  • Alaska
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Delaware
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Illinois

This is part 1 of a 4 part series that will provide information to homeowners across the United States in an effort to help our customers and readership get the most out of their solar energy system and see the best return on investment possible.


Alabama offers incentive programs through their state that include performance-based, tax incentives, as well as loan programs. These programs are in an effort to encourage the adoption of green energy. Alabama does not currently offer a cash rebate for solar. 

However, Alabama does provide a property tax abatement that owners of qualifying renewable energy systems/facilities can take advantage of. This abatement can exempt property tax on the additional value that is added to a home as the result of solar installation. The time period for this abatement varies depending on jurisdiction.


Alaska State Legislature allows municipalities to create their own laws that can exempt (or at least partially exempt) homeowners and property owners from taxation of clean or renewable energy systems.

Alaska also offers a renewable energy credit in Alaska, which is made available to all residents. The average credit value in Alaska is around $5,634.


Arizona provides a number of renewable energy programs that are available to Arizona residents across a wide range of technologies. Programs currently available provide incentives for commercial and residential properties.

The Arizona State Residential Solar Income Tax Credit also provides a tax credit of 25% of solar installation costs.


Arkansas residents are eligible for federal tax incentives, however, there are currently no state-level tax incentives when it comes to installing a solar energy system. Arkansas does implement and follow a generous net metering program, which provides significant benefits to solar owners.


While many state solar tax incentives have expired in California as of this year, the state does provide the solar property tax exclusion (which according to our research will end after 2024). Specific communities can take advantage of The Disadvantaged Communities—Single-family Solar Homes (DAC-SASH) incentive. California also provides a Self-Generation Incentive Program (SGIP) that covers energy storage. However, this incentive does not cover solar panels.


In the state of Colorado, utility companies may offer solar incentives. Colorado also has the Colorado Sales and Use Tax Exemption for Renewable Energy Equipment, which is a tax exemption that allows homeowners with solar to save on the 2.9% state sales tax on solar installation costs. This credit also extends to solar equipment. 


Connecticut offers state tax credits which help offset installation costs when it comes to renewable energy systems. Public utility companies also offer kW incentives that put money in homeowner pockets.


Although there are currently no statewide solar rebates for Delaware, select utility companies in the state offer a cash rebate that can cover the cost of solar installation – $700 per kW and up to $6,000. 


Florida residents can benefit from two tax exemptions when it comes to solar. Exemptions apply to sales tax on solar panel installation, as well as the increased home value after solar installation, which will help you see less of a costly impact on property taxes.


Georgia currently does not offer many incentives for solar energy system owners. There is currently no income tax credit or property tax exemption. However, Georgia does feature abundant sunshine that will help you generate clean energy and see the quickest return on investment possible.


Hawaii has a fantastic 35% state solar tax credit that is made available for purchased home solar systems. Thai tax credit comes at a maximum $5,000 tax reduction. Additionally, eligible renters as well as low-to-moderate-income homeowners in the state can obtain special on-bill financing for rooftop solar systems.


Idaho provides a state tax credit equal to 40% of installation cost. This credit can be used for savings of up to $5,000 per year (or $20,000 total).


Illinois enjoys the rarified air of being one of few states in the country with a Solar Renewable Energy Credit (SREC) program. This program helps support the development of solar projects statewide. Homeowners can earn one SREC for every 1,000 kilowatt-hours produced by solar panels.

Geneverse PowerPillar ESS – Power for Good!

Since we’re covering the entire United States, this coverage might be a little broad. It would be best to research your respective state to get the most current information about state solar tax incentives.

Here at Geneverse, we provide products and solutions that help drive humanity to a more self-sustainable future. In our next blog we’ll cover state incentives for Indiana through Montana as we cover all of the United States in alphabetical order.

If you’re interested in switching to solar, our PowerPillar ESS is the most cost-efficient solar energy storage system on the market. Get in touch with Geneverse today to learn more about how we can help you become energy independent.

About Geneverse: Geneverse is the most reliable and cost-efficient source for solar energy. Our PowerPillar ESS integrates solar power, battery storage, not to mention grid and generator power sources that help our customers get the most out of their energy storage investment – all at the most competitive pricing on the market. We craft complete home energy systems that power energy independence rain or shine in addition to portable solar products that provide decentralized power during emergencies and unforeseen circumstances. Learn more about Geneverse and how we can bring protection and security to your family/household by visiting our website today.

Leave a comment (all fields required)

Comments will be approved before showing up.

Search our shop

Net Orders Checkout

Item Price Qty Total
Subtotal $0.00

Shipping Address

Shipping Methods