Solar Incentives for All 50 States - American Solar Sales

Last Updated: April 13, 2025

Note: All states qualify for the federal solar investment tax credit (ITC) of 30% through 2032.

Alabama

Property Tax Exemption: None
Sales Tax Exemption: None
State Tax Credit: None
Net Metering: Available through some utilities but not mandated statewide
Additional Incentives: Some utilities offer limited rebate programs

Alaska

Property Tax Exemption: None
Sales Tax Exemption: No state sales tax
State Tax Credit: None
Net Metering: Limited availability
Additional Incentives: Alternative Energy Conservation Loan Fund

Arizona

Property Tax Exemption: 100% exempt
Sales Tax Exemption: 100% exempt
State Tax Credit: 25% of system cost (up to $1,000)
Net Metering: Available but with reduced compensation rates
Additional Incentives: Utility rebates vary by provider

Arkansas

Property Tax Exemption: None
Sales Tax Exemption: None
State Tax Credit: None
Net Metering: Available with retail rate compensation
Additional Incentives: Limited utility rebates

California

Property Tax Exemption: 100% exempt
Sales Tax Exemption: None
State Tax Credit: None
Net Metering: NEM 3.0 provides reduced compensation for excess generation
Additional Incentives: Self-Generation Incentive Program (SGIP) for battery storage, SANAH for low-income households

Colorado

Property Tax Exemption: 100% exempt
Sales Tax Exemption: State sales tax exempt (local taxes may apply)
State Tax Credit: None
Net Metering: Available through major utilities
Additional Incentives: Utility rebates (e.g., Xcel Energy offers up to $500 per kW)

Connecticut

Property Tax Exemption: 100% exempt
Sales Tax Exemption: 100% exempt
State Tax Credit: None
Net Metering: Available at retail rates
Additional Incentives: Residential Solar Investment Program (RSIP) rebates, Energy Storage Solutions incentive

Delaware

Property Tax Exemption: None
Sales Tax Exemption: No state sales tax
State Tax Credit: None
Net Metering: Available statewide
Additional Incentives: Strong SREC market, utility rebate programs

Florida

Property Tax Exemption: 100% exempt
Sales Tax Exemption: 100% exempt
State Tax Credit: None
Net Metering: Available through most utilities
Additional Incentives: Local utility rebates

Georgia

Property Tax Exemption: None
Sales Tax Exemption: None
State Tax Credit: None
Net Metering: Limited availability
Additional Incentives: Some utility rebate programs

Hawaii

Property Tax Exemption: Varies by county
Sales Tax Exemption: None
State Tax Credit: 35% of system cost (up to $5,000)
Net Metering: Customer Grid Supply Plus program (reduced rates)
Additional Incentives: Battery storage incentives

Idaho

Property Tax Exemption: None
Sales Tax Exemption: None
State Tax Income Deduction: 40% of system cost in first year, 20% in each of the next three years (up to $5,000 per year)
Net Metering: Available through select utilities
Additional Incentives: Low-interest loan programs

Illinois

Property Tax Exemption: 100% exempt
Sales Tax Exemption: None
State Tax Credit: None
Net Metering: Available statewide
Additional Incentives: Illinois Shines program (SRECs), Adjustable Block Program, Solar For All low-income program

Indiana

Property Tax Exemption: 100% exempt
Sales Tax Exemption: None
State Tax Credit: None
Net Metering: Being phased out, replacement program offers reduced rates
Additional Incentives: Limited utility rebates

Iowa

Property Tax Exemption: 100% exempt for 5 years
Sales Tax Exemption: 100% exempt
State Tax Credit: None
Net Metering: Available for systems under 500 kW
Additional Incentives: Utility rebate programs

Kansas

Property Tax Exemption: 100% exempt (lifetime)
Sales Tax Exemption: None
State Tax Credit: None
Net Metering: Available but with sunset provisions
Additional Incentives: Limited utility rebates

Kentucky

Property Tax Exemption: 100% exempt
Sales Tax Exemption: None
State Tax Credit: None
Net Metering: Grandfathered systems receive retail rate, new systems receive lower compensation
Additional Incentives: Limited utility programs

Louisiana

Property Tax Exemption: 100% exempt
Sales Tax Exemption: None
State Tax Credit: None (expired in 2016)
Net Metering: Available with varying rates
Additional Incentives: Home Energy Loan Program (low-interest loans)

Maine

Property Tax Exemption: Varies by municipality
Sales Tax Exemption: None
State Tax Credit: None
Net Metering: Net Energy Billing with modest compensation rates
Additional Incentives: Efficiency Maine rebates for income-qualified households

Maryland

Property Tax Exemption: 100% exempt
Sales Tax Exemption: 100% exempt
State Tax Credit: None
Net Metering: Available statewide
Additional Incentives: Strong SREC market, residential clean energy grant program, local incentives

Massachusetts

Property Tax Exemption: 100% exempt (20 years)
Sales Tax Exemption: 100% exempt
State Tax Credit: 15% of system cost (up to $1,000)
Net Metering: Available at retail rates
Additional Incentives: SMART Program, ConnectedSolutions for batteries, MassSave

Michigan

Property Tax Exemption: None
Sales Tax Exemption: None
State Tax Credit: None
Net Metering: Being replaced with inflow/outflow billing at reduced rates
Additional Incentives: Limited utility rebates

Minnesota

Property Tax Exemption: 100% exempt
Sales Tax Exemption: 100% exempt
State Tax Credit: None
Net Metering: Available with varying rates by utility
Additional Incentives: Solar*Rewards program, battery incentives, utility rebates

Mississippi

Property Tax Exemption: None
Sales Tax Exemption: None
State Tax Credit: None
Net Metering: Limited availability
Additional Incentives: Some utility rebate programs

Missouri

Property Tax Exemption: 100% exempt
Sales Tax Exemption: None
State Tax Credit: None
Net Metering: Available with retail rates
Additional Incentives: Rebates through Ameren, Evergy, and other utilities

Montana

Property Tax Exemption: 100% exempt (10 years)
Sales Tax Exemption: No state sales tax
State Tax Credit: None
Net Metering: Available with retail rates
Additional Incentives: Limited utility programs

Nebraska

Property Tax Exemption: None
Sales Tax Exemption: None
State Tax Credit: None
Net Metering: Available for systems under 25 kW
Additional Incentives: Local utility programs

Nevada

Property Tax Exemption: 100% exempt
Sales Tax Exemption: None
State Tax Credit: None
Net Metering: Available but at reduced rates
Additional Incentives: NV Energy Residential Storage Incentive

New Hampshire

Property Tax Exemption: Varies by municipality
Sales Tax Exemption: No state sales tax
State Tax Credit: None
Net Metering: Available but with reduced rates under NEM 2.0
Additional Incentives: Residential Renewable Electric Generation Rebate Program ($200/kW, up to $1,000)

New Jersey

Property Tax Exemption: 100% exempt
Sales Tax Exemption: 100% exempt
State Tax Credit: None
Net Metering: Full retail credit for excess generation
Additional Incentives: Successor Solar Incentive (SuSI) Program (SREC-II)

New Mexico

Property Tax Exemption: 100% exempt
Sales Tax Exemption: 100% exempt
State Tax Credit: 10% of system cost
Net Metering: Available at retail rates
Additional Incentives: Sustainable building tax credit

New York

Property Tax Exemption: 100% exempt (15 years)
Sales Tax Exemption: 100% exempt
State Tax Credit: 25% of system cost (up to $5,000)
Net Metering: Available but transitioning to Value of Distributed Energy Resources
Additional Incentives: NY-Sun rebates ($0.20/watt), NYC Property Tax Abatement, Solar For All program

North Carolina

Property Tax Exemption: 80% exempt
Sales Tax Exemption: None
State Tax Credit: None (expired in 2015)
Net Metering: Available but with reduced rates
Additional Incentives: Duke Energy rebate program ($250/kW), TVA incentives

North Dakota

Property Tax Exemption: 100% exempt (5 years)
Sales Tax Exemption: None
State Tax Credit: None
Net Metering: Limited availability
Additional Incentives: Solar easement laws

Ohio

Property Tax Exemption: None
Sales Tax Exemption: 100% exempt
State Tax Credit: None
Net Metering: Available statewide
Additional Incentives: Active SREC market, utility rebates

Oklahoma

Property Tax Exemption: None
Sales Tax Exemption: None
State Tax Credit: None
Net Metering: Varies by utility, not mandated statewide
Additional Incentives: Limited local incentives

Oregon

Property Tax Exemption: 100% exempt
Sales Tax Exemption: No state sales tax
State Tax Credit: None
Net Metering: Available at retail rates for most utilities
Additional Incentives: Oregon Solar + Storage Rebate Program, Solar Within Reach ($1.20/watt up to $7,200 for PGE customers)

Pennsylvania

Property Tax Exemption: None
Sales Tax Exemption: None
State Tax Credit: None
Net Metering: Available statewide
Additional Incentives: Active SREC market, utility rebates

Rhode Island

Property Tax Exemption: 100% exempt
Sales Tax Exemption: 100% exempt
State Tax Credit: None
Net Metering: Available statewide
Additional Incentives: Renewable Energy Growth program ($0.2875/kWh for 15 years), grants ($0.65/W up to $5,000)

South Carolina

Property Tax Exemption: 100% exempt
Sales Tax Exemption: 100% exempt
State Tax Credit: 25% of system cost (up to $35,000)
Net Metering: Available but requires time-of-use rates
Additional Incentives: Santee Cooper rebate ($0.95/W up to $5,700)

South Dakota

Property Tax Exemption: None
Sales Tax Exemption: None
State Tax Credit: None
Net Metering: Limited availability
Additional Incentives: Rural utility programs

Tennessee

Property Tax Exemption: None
Sales Tax Exemption: 100% exempt
State Tax Credit: None
Net Metering: Not mandated statewide
Additional Incentives: TVA programs, Green Connect

Texas

Property Tax Exemption: 100% exempt
Sales Tax Exemption: None
State Tax Credit: None
Net Metering: Not mandated statewide, solar buyback programs vary by utility
Additional Incentives: Local utility rebates (especially Austin, San Antonio)

Utah

Property Tax Exemption: None
Sales Tax Exemption: 100% exempt
State Tax Credit: 25% of system cost (up to $800 for residential)
Net Metering: Transitioning to export credit rates
Additional Incentives: Rocky Mountain Power rebates

Vermont

Property Tax Exemption: 100% exempt for systems up to 50kW
Sales Tax Exemption: 100% exempt
State Tax Credit: None
Net Metering: Available statewide with modest premiums
Additional Incentives: Utility programs, energy storage incentives

Virginia

Property Tax Exemption: Varies by locality
Sales Tax Exemption: None
State Tax Credit: None
Net Metering: Available statewide
Additional Incentives: Limited utility programs

Washington

Property Tax Exemption: None
Sales Tax Exemption: 100% exempt
State Tax Credit: None
Net Metering: Available statewide
Additional Incentives: Battery incentive programs, utility rebates

West Virginia

Property Tax Exemption: None
Sales Tax Exemption: None
State Tax Credit: None
Net Metering: Available statewide
Additional Incentives: Limited utility programs

Wisconsin

Property Tax Exemption: 100% exempt
Sales Tax Exemption: 100% exempt
State Tax Credit: None
Net Metering: Available but with varying rates
Additional Incentives: Focus on Energy rebates

Wyoming

Property Tax Exemption: None
Sales Tax Exemption: None
State Tax Credit: None
Net Metering: Available for systems under 25 kW
Additional Incentives: Limited utility programs

Disclaimer: This information is current as of April 2025 but is subject to change. Incentives may vary by utility territory and locality within states. Contact your local solar installer or state energy office for the most up-to-date information specific to your situation. This guide is not tax or legal advice.