Solar Incentives by State 2026

Complete guide to federal tax credits, state rebates, net metering policies, and average solar costs for every US state and top metropolitan areas.

Federal Investment Tax Credit (ITC)

The Federal Investment Tax Credit is available nationwide:

30% off your total solar installation cost through 2032
26% in 2033
22% in 2034
Expires after 2034 (unless extended by Congress)

This means a $20,000 system costs only $14,000 after the 30% federal tax credit.

Top 10 States for Solar Incentives

These states offer the best combination of federal tax credits, state incentives, net metering, and solar-friendly laws:

☀️ California

Strong net metering (NEM 2.0), plug-and-play solar laws for renters, property tax exemption, community solar programs.

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⚡ New Jersey

Best net metering rates (retail), SREC payments ($80–150 each), 25-year property tax exemption, fast interconnection.

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🏠 Massachusetts

Retail net metering, state tax credits ($1,250), strong solar access laws, MassSave rebates.

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🗽 New York

Strong net metering, NYSERDA rebates ($1,500–$6,000), property tax exemption, community solar programs.

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🏔️ Colorado

Xcel Energy partnership, state rebates ($0.80–$1.00/W), property tax exemption, strong incentive programs.

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⭐ Texas

No state income tax, property tax exemption, strong market, competitive installer prices, renter-friendly policies.

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🌴 Florida

No state income tax, property & sales tax exemptions, growing installer market, fast growth.

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🌵 Arizona

State tax credit ($1,600–$3,000), property tax exemption, excellent sun conditions, large market.

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🏙️ Illinois

Net metering at retail rates, state rebates ($0.30–$0.75/W), property tax exemption, strong incentives.

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🍑 Georgia

No state income tax, property tax exemption, no sales tax on solar, growing market with competitive pricing.

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Top 20 Metropolitan Areas

Solar costs, incentives, and net metering vary by city. Check local utility details and HOA rules:

Los Angeles, CA

SCE net metering, ~$1,200/year savings, medium HOA density.

Houston, TX

CenterPoint Energy, ~$1,500/year savings, renter-friendly.

Phoenix, AZ

SRP net metering, ~$900/year savings, high HOA density.

San Antonio, TX

CPS Energy, ~$1,400/year savings, moderate HOA density.

San Diego, CA

SDG&E net metering, ~$1,600/year savings, high HOA density.

Dallas, TX

Oncor/Dallas Power, ~$1,350/year savings, medium HOA density.

San Jose, CA

PG&E net metering, ~$1,500/year savings, high HOA density.

Austin, TX

Austin Energy, ~$1,200/year savings, renter-friendly.

Jacksonville, FL

Duke Energy, ~$900/year savings, moderate HOA density.

San Francisco, CA

PG&E net metering, ~$1,400/year savings, high HOA density.

Columbus, OH

AEP net metering, ~$700/year savings, low HOA density.

Charlotte, NC

Duke Energy Carolinas, ~$850/year savings, medium HOA density.

Indianapolis, IN

IPL net metering, ~$600/year savings, low HOA density.

Seattle, WA

City Light, ~$400/year savings (low sun), low HOA density.

Denver, CO

Xcel Energy, ~$1,000/year savings, moderate HOA density.

Nashville, TN

NES net metering, ~$800/year savings, low HOA density.

Las Vegas, NV

NV Energy, ~$1,100/year savings, medium HOA density.

Washington, DC

Pepco net metering, ~$700/year savings, high condo density.

Chicago, IL

ComEd net metering, ~$500/year savings (winter clouds), medium HOA density.

Explore More Resources

50 State Solar Law Tracker — Plug-and-play solar, HOA protections, renter rights
Renter's Solar Hub — Complete guide for apartment dwellers
Best UL 3700 Solar Products — Certified equipment recommendations
DSIRE Database — Official incentive directory (external)
National Renewable Energy Lab (NREL) — Research and data (external)