US Solar Incentives & Grants 2026
The federal 30% Investment Tax Credit ended on 31 December 2025, so in 2026 the savings come from state-level rebates, net metering, and SRECs — which in strong states can still cut a homeowner's installation cost by 20–40%. Here's every incentive available to you now.
Muhammad founded KilowattKit after spending hours trying to decode confusing electricity bills and realising there were no clear, jargon-free tools for ordinary homeowners. He researches energy rates, solar payback, EV charging, and heat pump economics across the US, UK, Canada, and Australia — sourcing every figure directly from official government and regulatory data.
Types of Solar Incentives in the US
Federal Investment Tax Credit (ITC)
Ended 31 Dec 2025For over a decade this was the biggest solar incentive in the US — a 30% reduction in your federal income tax bill. It ended on 31 December 2025 under the One Big Beautiful Bill Act (July 2025). Systems placed in service by the end of 2025 can still claim it on the 2025 return, but a system bought in 2026 gets a 0% federal credit.
State Rebates & Tax Credits
Varies by stateWith the federal ITC now ended, state incentives matter more than ever. Many states offer their own rebates (cash back), income tax credits, or utility rebates. New York, Massachusetts, California, and New Jersey have some of the strongest state-level programs.
Net Metering
Most statesNet metering lets you sell surplus solar electricity back to your utility at the retail electricity rate — effectively using the grid as a free battery. 40+ states mandate some form of net metering, though rules vary significantly. California's NEM 3.0 (2023) significantly reduced export credits, making batteries more valuable.
SRECs (Solar Renewable Energy Credits)
Select statesFor every 1,000 kWh (1 MWh) your solar system generates, you earn one SREC, which utilities must buy to meet their renewable portfolio standards. Active markets include New Jersey, Massachusetts, Maryland, Pennsylvania, Illinois, and Washington DC. SREC prices fluctuate — NJ SRECs have traded between $200–$300 in recent years.
Property Tax & Sales Tax Exemptions
Many statesSolar panels typically increase home value, but 36 states exempt that added value from property tax reassessment — so you won't pay more property tax after going solar. Additionally, 25 states have sales tax exemptions on solar equipment, saving you 5–10% upfront.
In-Depth Guides
Federal Solar Tax Credit (ITC)
How the 30% credit worked, who can still claim it on a 2025 return, and why it ended for 2026 buyers.
Full guide →State Solar Incentives & Rebates
Best state programs ranked — NY-Sun, SGIP, Mass SMART, SREC markets, net metering rules, and more.
Full guide →HEEHRA Rebates (Up to $14,000)
Upfront cash rebates for heat pumps, EV chargers, electrical panels and more — no tax liability needed.
Full guide →California: SGIP Battery Rebate & NEM 3.0
SGIP battery rebates up to $1,000/kWh, property tax exemption, and how NEM 3.0 changed the solar calculus.
Full guide →New York: NY-Sun + 25% State Tax Credit + Tax Exemptions
NY stacks a 25% state credit (up to $5,000) + NY-Sun Megawatt Block rebate + sales & property tax exemptions — still one of the best US state packages now that the federal 30% ITC has ended.
Full guide →US Solar Incentives at a Glance
| Incentive | Who qualifies | Typical value | How claimed |
|---|---|---|---|
| Federal ITC — ended 31 Dec 2025 | Only pre-2026 installs (2025 return) | $0 in 2026 (was ~$6,000–$9,000) | IRS Form 5695 (2025) |
| NY State Credit | NY residents with tax liability | Up to $5,000 | Form IT-255 |
| MA SMART Program | Eversource/National Grid customers | Varies by capacity block | Utility billing |
| NJ SRECs | NJ grid-connected solar owners | ~$200–$300/SREC/yr | SREC broker/aggregator |
| CA SGIP Battery | CA residents (income tiers) | $200–$1,000/kWh | Via approved contractor |
| Property tax exemption | Homeowners in 36+ states | $500–$2,000/yr saved | Automatic in most states |
| Sales tax exemption | Buyers in 25+ states | $1,000–$3,000 saved | Applied at purchase |
Use our solar calculators to estimate your payback period, SEG/net metering income, and whether battery storage stacks up financially.
Important note on accuracy
Solar incentive programs change frequently — state budgets run out, new programs launch, and utility net metering rules are revised. Always verify current terms with your state energy office, the Database of State Incentives for Renewables & Efficiency (DSIRE at dsireusa.org), and your chosen installer before making financial decisions.