The 10 Best States for Solar Incentives

The United States has a wide variety of incentives for solar power, with some states offering more significant rebates and tax breaks than others. Here are the 10 best states for solar incentives, based on the amount of money you can save:

1. New York

Residents of New York have quite a few options to ease the cost of their solar panel installation other than the federal tax incentive. Such as, enrolment in the NY-Sun Megawatt Block initiative through which customers can get a cash rebate per watt ($/W).

This option is available for both residential and commercial systems. Or they could take advantage of the Solar Energy System Equipment Credit that lets residents subtract up to $5,000 or 25% of overall solar costs (whichever is smaller) from their taxes when they purchase new systems.

Buyers of solar equipment do not have to pay the state’s 4% sales tax.

Net metering: Currently, New York residents can take advantage of a statewide program called net metering, which allows excess solar power generated by a system to be fed into the grid in exchange for utility credits.

2. Rhode Island

Saving money on solar installation in Rhode Island can be accomplished through programs such as CommerceRI’s Renewable Energy Fund grant program. Through this, one can receive up to a $0.85 per watt rebate, with a cap of $7,000.

Typically, this amounts to a saving of between $4,000 and $5,000 on the average system. Furthermore, there is also an exemption from property tax increases if the value of your home rises due to new solar panels. Additionally, Rhode Island residents are afforded a sales tax exemption when they make such purchases.

A Rhode Island resident who purchases a solar system is exempt from paying state sales taxes of 7%. In exchange for utility credits, Rhode Island residents can feed back their excess solar energy into the grid. Renewable Energy Growth is one of the state’s programs that guarantees residents 29.65 cents per kilowatt-hour for 15 years if they participate.

3. Iowa

As an additional incentive to the federal tax credit, Iowa offers a number of solar tax incentives:

Property tax exemption: This exemption ensures that Iowa homeowners’ property taxes will remain unchanged if solar panels increase their property value.

Net metering: Iowa residents may also take advantage of net metering credits when purchasing equipment for their new solar system. State sales tax exemptions are available to Iowans when purchasing equipment for their new solar system.

4. Connecticut

Connecticut offers several financial incentives to help its residents take advantage of renewable energy programs. Through Renewable Energy Solutions, customers can sell energy they generate or RECs back to utility providers Eversource and United Illuminating.

Additionally, Connecticut’s Energy Conservation Loan Program offers low-interest loans up to $25,000 that are payable over 10 years. Interest rates begin at 0% and may not exceed 6%.

Exemptions from sales tax: Connecticut residents won’t have to pay the 6.35% state sales tax on new solar equipment.

Exemptions from property tax: Connecticut homeowners won’t have to raise their property taxes after installing solar panels.

5. Maryland

Aside from the federal tax benefits, Maryland residents have access to additional financial incentives. In particular, there is a Residential Clean Energy Rebate Program offering a $1,000 rebate if they install solar panels or solar shingles at their primary residence.

Moreover, by generating clean electricity with their residential solar systems, they may be able to obtain Solar Renewable Energy Certificates (SRECs) which can then be sold on the SREC market.

Solar systems can increase the value of a home, but Maryland residents do not have to pay additional property taxes.

Sales tax exemption: New solar equipment is exempt from the state’s 6% sales tax. Maryland homeowners are eligible for net metering, which enables them to use excess solar energy to receive utility credits by feeding it back into the solar grid.