State Solar Tax Incentives Guide (Part 2)

Getting ready to file taxes this year? Many of us are trying to save on taxes, and some of our purchases throughout the year can be deducted from what you could potentially owe the IRS and your respective state (if you have an applicable state tax). 

Purchasing a solar energy system comes along with certain tax incentives, both at the federal and in many cases at the state level. Below, Geneverse goes over state tax incentives. We’re covering the entire good ol’ US of A.

This article will cover the following states:

  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Montana


Indiana provides solar incentives when it comes to local programs as well as state legislation. Homeowners statewide are exempt from state property tax for the increases in home value that occur due to the installation of solar. 

Purchasing a system can also be exempt from sales tax. Certain solar power system components may also be exempt from Indiana’s sales tax (which is currently at 7%).


Homeowners who invest in solar power in 2024 can capitalize on federal solar incentives like the federal tax credit as well as the solar sales tax exemption. In addition to this, Iowa also offers a solar property tax exemption and has a robust net metering program.

Any equipment purchased associated with solar energy systems is exempt from the 6% Iowa sales tax.


Kansas could potentially be among the most cost-effective states to go solar. Pair that with the PowerPillar ESS (the  most cost-efficient solar energy storage system on the market) and you’re going to experience some serious savings.

After homeowners install solar, they can take advantage of the federal tax credit (ITC), the average cost of a solar energy system is around $16,000 in Kansas. Kansas also features a property tax incentive that encourages homeowners to convert to solar power.


Besides the federal solar ITC, there is an additional tax incentive for solar customers, however, it does not benefit residential customers. Eligible commercial solar customers can receive income tax credits that are a part of the Kentucky Incentives for Energy Independence. Currently, there are no additional tax credits available for residential customers.


Louisiana doesn’t have a ton of incentives beyond the ITC, however, Louisiana does have a solar property tax exemption that helps homeowners converting to solar avoid paying increased property taxes after solar panel installation. 

Although Louisiana does not have a state rebate for panel installation, individual manufacturers may offer cash rebates for using their solar products.


Maine offers the Maine Property Tax Exemption, which can potentially waive property tax increases that come as the result from installing solar energy equipment. It’s important to apply ahead of time for state – this is an exemption you do have to qualify for. Maine also has a robust net metering program that will help homeowners with solar see a fast return on their investment.


Maryland has several tax incentives in addition to the federal solar tax credit. The SREC Program helps homeowners earn money back for their energy that is generated through their marketplace.

Maryland also offers the Residential Clean Energy Rebate Program for eligible homeowners. This is a rebate of up to $1,000 for solar panel installation. Maryland also offers a sales tax and property tax exemption.


Massachusetts boasts some of the best solar incentives in the country. Massachusetts offers a state solar tax credit worth 15% of the total installation cost. This credit can be used up to $1,000. Massachusetts also offers a sales and property tax exemption in addition to solar rebates offered at the local level.


Although Michigan does not have a state solar tax credit, it does offer property tax exemption related to the installation of solar as well as distributed generation and net metering, which helps homeowners converting to solar get the most out of their investment in green energy.


Minnesota offers a sales tax exemption and a property tax exemption for the installation of a solar energy system. Local utility companies also offer a variety of incentives for solar energy system owners such as the Minnesota Power SolarSense Rebate that helps customers see a rebate of up to 60% of installation costs.


Although Mississippi does not have a state solar tax incentive, the Mississippi Public Service Commission implemented a program in 2022 that pays homeowners one-time rebates (up to $3,500) for the installation of a solar energy system (between 3 kW and 20 kW). Mississippi also has net metering and localized solar incentives.


Missouri has state incentives in place that eliminate increased property taxes that would come about from the installation of solar. Missouri also has a net metering program and many local utility companies provide additional rebates and incentives that help homeowners save serious coin.


Montana provides a Renewable Energy Systems Exemption that serves as a property tax exemption. Montana also has Alternative Energy Systems Income Tax Credit that can be claimed for up to $500. 

Geneverse PowerPillar ESS – Power for Good!

As solar power becomes more and more omnipresent, it’s likely that more and more states will increase solar incentives in the future. 

It’s never been easier to go green with solar energy. The Geneverse PowerPilalr ESS is the most cost-efficient energy storage system available on the market. Easy installation and operation. Fewer components. Own your power for good!

Tune in for Part 3 of our series covering state solar tax incentives across the country. Our next article will cover Nebraska through Pennsylvania.

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.

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