Solar Incentives

Federal Tax Incentives

The following federal income tax credits are available to anyone who purchases a solar electric system including solar panels. Energy storage paired with solar systems are considered qualified expenditures eligible for the tax credit.

Residential Federal Tax Credit

Business Federal Tax Credit

For Systems Installed:

26%

26%

January 1 to December 31, 2020

22%

22%

January 1 to December 31, 2021

0%

0%

On or after January, 2022

State Incentives

Several states and local utilities offer additional solar incentives for customers, often taking the form of a rebate. Most rebates can either be claimed after purchase or reflected as a reduction in the price of your purchase for solar systems, while tax credits are claimed when filing income taxes.

Available Incentives*

All states

26% federal income tax credit (subject to phase out schedule above)

Arizona

Up to $1,000 state tax credit

California

Select utilities may offer incentives

Colorado

Select utilities may offer a Solar incentive

Connecticut

Up to $300 per kW PTC

Delaware

Select utilities may offer a Solar incentive

Hawaii

State tax credit equal to the lesser of 35% of actual system cost or $5,000 per 5 kW

Illinois

Earn $1,000 per kW off the cash or loan price of solar panels, and $860 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC)

Maryland

$1,000 per system; Earn $170 per kW off the cash or loan price of solar panels and $140 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC)

Massachusetts

Up to $1,000 State Tax Credit: Select utilities may offer a solar incentive

New Hampshire

Earn $100 per kW off the cash or loan price of solar panels and $80 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC)

New Jersey

Earn $720 per kW off the cash or loan price of solar panels and $600 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC)

New York

Up to $350 per kW and up to $5,000 state tax credit

Pennsylvania

Earn $90 per kW off the cash or loan price of solar panels and $80 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC)

Oregon

$300 per kW up to $2,400

Rhode Island

Earn $100 per kW off the cash or loan price of solar panels and $80 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC)

Texas

Select utilities may offer a Solar incentive

Utah

Up to $1,600 state tax credit

Vermont

$0.02 per kWh production incentive for 10 years

Washington D.C.

Earn $930 per kW off the cash or loan price of solar panels and $780 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC)

Above solar incentives apply to eligible residential customers. Incentive programs are offered and administered by government agencies. Eligibility and availability vary and are outside of Headline Solar's control. Most programs are limited to a total dollar amount that can be dispersed or will expire on a certain date. Be sure to visit the state program’s website for the most up-to-date information on availability and redemption requirements.

Your eligibility for income tax credits depends on your personal tax situation. We recommend speaking with a tax professional for guidance.

Local & Utility Incentives

Some communities and utility companies also offer additional incentives through cash back, discounted rate plans and other credits:

Available Incentives*

Colorado

Black Hills Energy offers a $0.05/kWh incentive for 10 years
Fort Collins offers a $500 per kW incentive up to $1,500
Colorado Springs offers a $80 per kW incentive

Connecticut

Norwich Public Utilities offers a $680/kW incentive up to 10 kW

Delaware

Delmarva Power & Light offers a cash rebate to cover cost of solar installation equal to $500 per kW up to $3,000

Massachusetts

Earn hundreds of dollars annually by enrolling your solar system in the MA SMART program

Concord Municipal Light Plant offers a $630/kW incentive up to $3,125

Most MA municipal utilities are offering up to $1.20/Watt under the Municipal Light Plant Solar Rebate Program

Minnesota

Xcel Energy offers a performance-based incentive for solar owners paying $0.07/kWh of solar production annually for up to 10 years

Minnesota’s Made in Minnesota program offers several payback plans for qualifying customers

Oregon

The City of Ashland offers a cash rebate of $500 per kW for solar systems up to $7,500

The Eugene Water & Electric Board offers an incentive of $400 per kW for systems up to $2,500

The City of Forest Grove offers a $500/kW incentive up to $1,000

Salem Electric offers a $300 per kW incentive up to $1,500

Texas

Austin Energy offers residential rebates and performance incentives for eligible solar customers

CPS Energy (City of San Antonio) offers residential rebates for eligible solar customers

Farmers Electric Cooperative offers a $500 per system incentive

Additional utilities offering rebates: Garland Power & Light, Sunset Valley, Guadalupe Valley Electric

*Please consult your state and local municipalities' incentive programs and offerings for the most up to date information.