26%
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. For more information, please visit the IRS' website. Form 5695, Residential Energy Credits
Residential Federal Tax Credit
Business Federal Tax Credit
For Systems Installed:
26%
26%
2020
30%
26%
2021
30%
26%
2022
26%
22%
2023
22%
10%
2024
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
Selected utilities may offer incentives
Colorado
Selected utilities may offer a Solar incentive
Connecticut
Up to $300 per kW PTC
Delaware
Selected utilities may offer incentives
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 or Solar Roof by trading your Solar Renewable Energy Credits (SREC)
New Jersey
Earn $770 per kW off the cash or loan price of solar panels and $650 per kW off the cash or loan price of Solar Roof by trading your Solar Renewable Energy Credits (SREC)
New York
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 $1,200 state tax credit
Vermont
$0.02 per kWh production incentive for 10 years
Washington D.C.
Earn $1020 per kW off the cash or loan price of solar panels and $850 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.
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 $675/kW incentive up to 10 kW
Delaware
Delmarva Power & Light offers a cash rebate to cover cost of solar installation equal to $700 per kW up to $6,000
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 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
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.
