State Solar Incentives Guide (2025 Edition)
Why State Incentives Matter
The Federal Solar Tax Credit gives every homeowner a 30% discount on their solar system, but some states go even further with extra tax credits, cash rebates, and favorable net metering policies that make solar even more profitable. This guide ranks the best states for solar incentives in 2025 and gives you a clear, simple snapshot of what to expect in your state.
Top 10 Most Generous States for Solar Incentives (2025)
| Rank | State | Key Incentive |
|---|---|---|
| 1 | New York | 25% State Tax Credit (up to $5,000) + Strong Net Metering (0.80x) |
| 2 | Massachusetts | 15% State Tax Credit + SMART Payments (0.90x Net Metering) |
| 3 | South Carolina | 25% State Tax Credit (up to $35,000) + 0.70x Net Metering |
| 4 | Hawaii | 35% State Tax Credit (up to $5,000) + 0.50x Net Metering |
| 5 | Maryland | $1,000 State Grant + Full Retail Net Metering (1.00x) |
| 6 | New Jersey | Transition Incentive Program (TREC) + No Sales Tax + Full Retail Net Metering (1.00x) |
| 7 | Illinois | Adjustable Block Program (cash incentives per kW) + Full Retail Net Metering (1.00x) |
| 8 | Rhode Island | Renewable Energy Fund Grants + Full Retail Net Metering (1.00x) |
| 9 | Vermont | Efficiency Utility Rebates + 0.90x Net Metering |
| 10 | Connecticut | RSIP Rebate + 0.85x Net Metering (phasing out after 2025) |
Full State-by-State Directory
| State | Best Incentive Highlight | Net Metering (Buyback Rate) |
|---|---|---|
| Alabama | None at state level | Reduced Credit (0.40x) |
| Alaska | None at state level | Full Retail (1.00x) |
| Arizona | $1,000 State Tax Credit + Property Tax Exemption | Reduced Credit (0.70x) |
| Arkansas | None at state level | Reduced Credit (0.50x) |
| California | Net Billing 2.0 + SGIP Battery Rebates | Time-of-Use Net Billing (0.25x) |
| Colorado | None at state level | Full Retail (1.00x) |
| Connecticut | Residential Solar Investment Program (RSIP) rebate | Reduced Credit (0.85x) |
| Delaware | $3,000 Green Energy Program Grant | Full Retail (1.00x) |
| District of Columbia | Solar for All (low-income incentives) | Full Retail (1.00x) |
| Florida | None at state level | Reduced Credit (0.40x) |
| Georgia | None at state level | Reduced Credit (0.50x) |
| Hawaii | 35% State Tax Credit (up to $5,000) | Reduced Credit (0.50x) |
| Idaho | None at state level | Reduced Credit (0.80x) |
| Illinois | Adjustable Block Program (cash incentives per kW) | Full Retail (1.00x) |
| Indiana | None at state level | Reduced Credit (0.60x) |
| Iowa | None at state level | Full Retail (1.00x) |
| Kansas | None at state level | Reduced Credit (0.55x) |
| Kentucky | None at state level | Reduced Credit (0.40x) |
| Louisiana | None at state level | Reduced Credit (0.50x) |
| Maine | None at state level | Reduced Credit (0.75x) |
| Maryland | $1,000 State Grant + Property Tax Exemption | Full Retail (1.00x) |
| Massachusetts | 15% State Tax Credit (up to $1,000) + SMART Payments | Reduced Credit (0.90x) |
| Michigan | None at state level | Reduced Credit (0.75x) |
| Minnesota | Solar Energy Standard + Xcel Energy Solar Rewards | Full Retail (1.00x) |
| Mississippi | None at state level | Reduced Credit (0.60x) |
| Missouri | None at state level | Reduced Credit (0.85x) |
| Montana | None at state level | Full Retail (1.00x) |
| Nebraska | None at state level | Reduced Credit (0.70x) |
| Nevada | None at state level | Time-of-Use Net Billing (0.75x) |
| New Hampshire | None at state level | Full Retail (1.00x) |
| New Jersey | Transition Incentive Program (TREC) + No Sales Tax | Full Retail (1.00x) |
| New Mexico | Renewable Energy Production Tax Credit | Full Retail (1.00x) |
| New York | 25% State Tax Credit (up to $5,000) | Reduced Credit (0.80x) |
| North Carolina | None at state level | Reduced Credit (0.75x) |
| North Dakota | None at state level | Reduced Credit (0.90x) |
| Ohio | None at state level | Reduced Credit (0.85x) |
| Oklahoma | None at state level | Reduced Credit (0.50x) |
| Oregon | Renewable Energy Standard + Energy Trust of Oregon rebates | Full Retail (1.00x) |
| Pennsylvania | AEPS credit | Full Retail (1.00x) |
| Rhode Island | Renewable Energy Fund Grants | Full Retail (1.00x) |
| South Carolina | 25% State Tax Credit (up to $35,000) | Reduced Credit (0.70x) |
| South Dakota | None at state level | Reduced Credit (0.85x) |
| Tennessee | None at state level | Reduced Credit (0.35x) |
| Texas | None at state level | Reduced Credit (0.80x) |
| Utah | None at state level | Reduced Credit (0.65x) |
| Vermont | Renewable Energy Standard + Efficiency Utility rebates | Reduced Credit (0.90x) |
| Virginia | None at state level | Full Retail (1.00x) |
| Washington | None at state level | Full Retail (1.00x) |
| West Virginia | None at state level | Reduced Credit (0.75x) |
| Wisconsin | None at state level | Full Retail (1.00x) |
| Wyoming | None at state level | Reduced Credit (0.85x) |
Reminder: These rates come directly from the research-backed stateBuyBacks variable inside our solar calculator at howmuchsolar.com — always up-to-date with the latest policy changes.
Last Updated: March 6, 2025
Want More? Check Out These Related Guides:
Remember: Every State Gets the 30% Federal Solar Tax Credit!
Even if your state does not offer extra incentives, every homeowner can claim 30% off system costs with the federal tax credit.
Check Your Exact Savings with Our Free Solar Calculator
Want to know your real savings after all incentives? Use our Solar Calculator — it’s free, no email required.
This guide will be updated regularly as state programs evolve — so check back often!
howmuchsolar.com - Where Real Math Meets Real Savings.