Solar Incentives – If you think living in a northern, cloudy, or rainy region means solar panels won’t pay for themselves, think again. Across the U.S., over 30 states offer subsidies or incentives for solar installation, making it a worthwhile investment even in areas with less sunshine. Whether through state-funded programs, utility company incentives, or tax credits, many states are making solar energy more accessible and affordable for homeowners and businesses.
While California, Texas, and Florida are often seen as solar powerhouses due to their abundant sunshine, strong state incentives can make going solar beneficial anywhere. Let’s explore 10 states with some of the best solar programs and see how incentives can make solar energy a smart financial choice.
Incentives make any state attractive for going solar
Aside from the federal 30% Solar Tax Credit, which applies nationwide, each state has unique incentive programs, including:
- Tax exemptions – Reduce or eliminate sales tax and property tax increases due to solar installations.
- Rebates – Direct cash incentives from states or utility companies to lower upfront costs.
- Tax credits – Allow homeowners to deduct a portion of solar expenses from state taxes.
- Subsidized loans – Low-interest financing options for solar systems.
Now, let’s take a closer look at 10 states that stand out for their strong solar incentives and programs.
1. Arizona
With over six peak solar hours daily, Arizona is naturally a top contender for solar energy. The Arizona Residential Solar Tax Credit lets homeowners deduct up to $1,000 from state taxes, while property tax exemptions ensure added home value without added taxes.
2. Colorado
Colorado enjoys 245 sunny days per year and offers strong incentives, including the Colorado Energy Office’s RENU Loan, a low-interest financing program. Several utility companies also provide rebates, making solar more affordable.
3. Minnesota
Despite its northern location, Minnesota has excellent solar programs like Solar*Rewards, which offers performance-based incentives, and property tax exemptions that prevent added costs due to solar system installations.
4. Oregon
Cloudy Oregon still makes solar a great investment with the Oregon Solar + Storage Rebate Program, offering up to $5,000 in solar rebates for homeowners and $30,000 for low-income housing providers.
5. Nebraska
Nebraska’s Dollar and Energy Saving Loan Program provides low-interest financing for solar panel systems, making it easier for residents to invest in renewable energy.
6. Idaho
Idaho homeowners benefit from the Renewable Energy Equipment Tax Deduction, allowing them to deduct up to 40% of installation costs from state taxes in the first year and 20% for the next three years.
7. Montana
Montana offers a $500 per taxpayer solar tax credit, plus net metering laws that let homeowners earn credits for excess solar power sent back to the grid.
8. Maryland
Maryland has a strong Solar Renewable Energy Credit (SREC) market, allowing solar system owners to sell credits for additional income. The state also offers property tax exemptions and rebates through local utilities.
9. Missouri
Missouri provides solar rebates up to $500/kW and allows solar owners to avoid extra taxes through property tax exemptions on solar energy systems.
10. Ohio
Ohio offers performance-based incentives through its ECO-Link Program, providing reduced-interest solar loans. The state’s net metering policies also make solar energy a financially viable option.
The bigger picture: How many states offer solar incentives?
Beyond these 10 states, over 30 states in the U.S. offer solar subsidies, rebates, or tax credits to encourage solar adoption. Even states without direct cash incentives may have net metering programs or financing options that make solar energy an attractive choice.
If you’re considering going solar, check with your state’s energy office or local utility company to see what incentives are available in your area. With the right programs, solar power can be a smart investment no matter where you live!