Federal & State Solar Incentives — What You Need to Know
US Federal Solar Tax Incentives (Nationwide)
- Investment Tax Credit (ITC) for Solar
Homeowners installing a solar energy system can claim up to 30% of the total system cost (including installation) as a federal tax credit — provided the system is placed in service by December 31, 2025 per the One Big Beautiful Bill Act. - After 2025 the credit for residential installations drops to 0% unless other structures apply.
- For commercial and third-party owned systems (leases/PPAs), eligibility under Section 48E may extend through 2027, but tight deadlines apply.
- Net Metering / Solar Energy Credits: Many states allow homeowners to earn credits for surplus solar power sent back to the grid — check your state and utility for details.
Note: Federal laws, IRS rules, and incentive timelines may change. Always consult a tax advisor or CPA for your specific circumstances.
Selected State-Specific Solar Incentives
California
- Solar systems are exempt from property tax reassessment (valid through 2025).
- Battery storage rebates via the Self-Generation Incentive Program (SGIP).
- Utility rebates via PG&E, LADWP, etc., and PACE financing.
District of Columbia
- Earn Solar Renewable Energy Credits (SRECs) for each MWh produced.
- Solar systems exempt from property tax increases.
- “Solar for All” programs provide assistance for lower income homes.
Maryland
- Up to $1,000 rebate for residential solar installations.
- SREC market allows the sale of solar energy credits.
- Solar systems may be exempt from property tax increases.
Texas
- Solar energy systems are completely exempt from property tax reassessment.
- Local utility solar rebates (e.g., Austin Energy).
- Net metering available in select utility regions only.
Florida
- Solar equipment is exempt from state sales tax.
- Property tax exemption for solar systems.
- Net metering programs available from utilities like FPL or Duke Energy.
Arizona
- Residential tax credit of up to $1,000 for solar installations.
- Exemption from state sales tax on solar equipment.
- Solar systems do not trigger higher property tax assessments.
Nevada
- Net metering available for surplus solar generation.
- Renewable Generations Rebates for system installations plus storage.
- Some jurisdictions offer property tax reductions for solar systems.
Missouri
- Certain local jurisdictions offer property tax exemptions for solar systems.
- State sales tax waiver on solar equipment lowers upfront costs.
- SREC program allows sale of energy credits; net metering for homes under 100 kW.
Why Act Now?
- With the One Big Beautiful Bill Act, the 30% federal solar tax credit for homeowners ends on December 31, 2025. Systems installed by that date qualify.
- Waiting too long could mean missing out on key savings and incentives.
- Incentives at the state level (sales tax exemptions, rebates, property tax exclusions) vary and may expire or change.
- Properly installed and documented systems boost home resale value, lower utility bills, and provide long-term energy savings.
Get Started with Sunguru Energy
Whether you’re considering solar, battery storage (ESS), EV charging or looking to upgrade your system to take advantage of these incentives, we’re here to help.
Let us guide you through the incentive-eligibility process, system design, installation, and beyond — so you get the maximum savings and value from your renewable energy investment.