6. New Mexico
Residents in New Mexico can take advantage of the federal tax incentive, along with the following: Solar Market Development Tax Credit: New Mexico taxpayers get a 10% tax credit (up to $6,000) toward total solar energy expenses.
The Sustainable Building Tax Credit: Using solar panels on your home will qualify you for a $6.50 per square foot tax credit. Note that the home must be certified by the U.S. Green Building Council to qualify.
Adding solar panels to your home does not increase your property tax bill. Net metering allows you to sell excess energy back to the grid.
7. Colorado
Solar tax incentives in Colorado include: Local rebates, although there is no statewide solar rebate program in Colorado, most major utility companies and local organizations offer rebates to customers.
Many non-homeowner residents can subscribe to an off-site solar array to get their energy from Colorado because it’s a leader in community solar adoption.
The state does not tax solar panels or solar systems’ physical equipment. Colorado homeowners can take advantage of net metering through their utility companies to avoid additional property taxes.
Net metering: Colorado homeowners do not have to pay additional property taxes for an increase in home value due to solar installation.
8. Massachusetts
Massachusetts homeowners can receive several incentives: Residential Energy Credit allows Massachusetts residents can receive a credit of up to 15% of the total solar system cost.
A maximum credit of $1,000 is available. This program offers credits to customers of investor-owned utility companies. It was created by the Massachusetts Department of Energy Resources.
During the installation of solar panels, Massachusetts residents will have to pay additional property taxes. Sales tax exemption: Solar panels and solar systems are exempt from sales tax in Massachusetts.
Net metering: In Massachusetts, customers of regulated electric companies are eligible for net metering.
9. New Hampshire
A number of tax incentives are available in New Hampshire, including the Renewable Electrical Generation Rebate Program:
Solar systems smaller than 10 kilowatts (kW) can qualify for credits worth up to $1,000 or 30% of the cost of their residential solar system.
A residential solar system’s value add is exempt from increasing property taxes in certain counties in New Hampshire. Residents of New Hampshire have the option of receiving money back from utilities through the net metering program.
10. New Jersey
The following incentives are available to residents of New Jersey: Transition Renewable Energy Certificates (TRECs): Solar systems can help homeowners earn these certificates, which they can sell back to utilities. New Jersey residents are exempt from property tax increases related to solar equipment for their homes.
A resident does not have to pay the state’s 6.625% sales tax on solar panels and installation equipment. If a homeowner in New Jersey uses net metering, any excess solar power their system generates can be fed back into the grid in exchange for credits.
Conclusion
Solar incentives can be a great way to reduce your energy costs and do your part in helping the environment. We hope that this information help you find out which US states offer the best solar incentives, so that you can make an informed decision about whether or not to invest in solar energy for your home or business.