Top 10 states with strong solar programs & incentives

12 Jan 2024
10 min
Beginner

Julia ZaraevaAuthor

If you live in a northern, cloudy and rainy region and think solar panels will never pay for themselves, don’t lose your heart and hope. Some states offer solar incentives so generous that even with little sunshine, your panels will become a truly worthwhile investment. Let’s look at them up close.

Incentives make any state attractive for going solar

People say that the best place to go solar is the south, with plenty of sunshine and high electricity costs. While California, Texas and Florida have always been the most popular for using solar energy, strong local programs can make the switch worthwhile in any state. That’s why we’ve composed a list made up of mostly northern states that show strong support for solar energy and prove that it can be beneficial virtually anywhere in the US.

Arizona

With over 6 peak solar hours, solar Arizona is viewed as one of the best states for going solar. As the cherry on the top of the cake, the state offers quite a few solar support programs. Is there any place better?

Federal Solar Tax Credit (ITC)	Deduct 30% of your PV system’s cost from your income taxes
Arizona solar tax credit	Return 25% of the cost of your system with a maximum cap of $1,000 – whichever is lower
Tax credit for generated energy	Earn up to $2 million dollars per year for over 5,000 kW commercial solar systems installed before January 1, 2021
Net billing	Sell into the grid all the excess energy that your system produces
Renewable Energy Credits	Save up to $1,000 a year trading RECs
Arizona property tax exemption	Freeze property tax with an exemption for solar panels
Sunwatts program by Mohave	Get up to $2,500 with Mohave solar rebates
Sales tax exemption	Makes going solar 5-6% cheaper

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Looking to build a home solar system? Check out solar panels that we have for sale in Arizona

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Colorado

Neither in the North, nor in the South, but right in the middle. With 245 clear days annually and many solar incentive programs, Colorado offers both a good energy harvest and a way to save quite a bit on your solar system.

Federal Solar Tax Credit (ITC)	Return 30% of your PV system cost
Net metering	Send excess electricity back to the grid, gain credits and pay your bills
Renewable Energy Credits	Save up to $1,000 a year trading RECs
Solar rebates from electric companies	Receive $0.10 per watt from Colorado Spring Utilities and San Miguel Power Association
Xcel Energy’s Solar Rewards Program	Earn $0.005 per kWh for systems under 25kW, 0.0375/kWh for systems between 25kW and 500kW. For systems over 500kW, bid by request for proposal.
Colorado property tax exemption	Install solar panels and keep property tax the same
Sales and use tax exemption	Make solar panels 3-8% cheaper
Solar loans from Elevation Credit Union	Get a $500 loan for residential customers and $1,000 for businesses with a rate from 2.75% to 8.125%

Check out solar panels near you!

Looking to build a home solar system? Check out solar panels that we have for sale in Colorado

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Minnesota

And here we have a northern state in our Top. Minnesota may not have plenty of sunshine, but it definitely has quite a bit of solar incentive programs to support you going solar.

Federal Solar Tax Credit (ITC)	Get 30% of your PV system’s cost back
Net metering	Sell excess electricity and save on electricity bills
Renewable Energy Credits	Save up to $1,000 a year trading RECs
Solar rebates from utility companies	Earn a few cents per each kW from Xcel Energy and Minnesota Power and a flat $500 rebate from Austin Utilities, Owatonna Public Utilities, and Rochester Public Utilities
Sales tax exemption	Make solar equipment 6.8% or more cheaper
Renewable Energy Systems Tax Exemption	Do not pay any extra taxes for having solar panels
Fix-Up Loan	Receive a $75,000 loan to finance going solar
Solar Easements	Protect your solar panels from shade

Check out solar panels near you!

Looking to build a home solar system? Check out solar panels that we have for sale in Minnesota

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Oregon

A solar system can make a good investment in your home even in cloudy Oregon. The state doesn’t boast an abundance of sunshine, but it does offer quite a few incentive programs that can make your shift to solar much easier.

Federal Solar Tax Credit (ITC)	Return 30% of your PV system cost
Net metering	Sell electricity to the grid, get credits and pay for your bills
Renewable Energy Credits	Save up to $1,000 a year trading RECs
Utilities’ rebate programs	Get $0.25 per watt up to a maximum of $5,000 per system from the City of Ashland Conservation Division. Receive 500.00 $/kW with a maximum of $2000.00 from the Central Lincoln People’s Utility District. Enjoy a $300/kW rebate from Salem Electric up to a cap of 50% of project costs or $1,500. Have $500 per project from Portland General Electric and $600 per project from Pacific Power. Take advantage of the Energy Trust of Oregon’s Solar Electric Incentive Program with $400 per project from PGE and $450 per project from Pacific Power.
Oregon property tax exemption	Install solar panels and keep your property tax the same
Solar Easements	Protect your solar panels from shade

Check out solar panels near you!

Looking to build a home solar system? Check out solar panels that we have for sale in Oregon

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Nebraska

Nebraska is nestled right in the heart of the country. It may not be basking in constant sunlight, but its incentive programs make it a nice place for those considering going solar.

Federal Solar Tax Credit (ITC)	Deduct 30% of your PV system’s cost from your income taxes
Net metering	Gain credits to cover your bills
Nebraska property tax exemption	Install solar system and freeze your property tax
Sales and use tax exemption for community projects	Do not pay taxes for buying and having a solar system
Dollar and Energy Savings Loans	Get a loan with the interest rate of 5% or lower
Solar Easements	Ensure your access to the sun

Check out solar panels near you!

Looking to build a home solar system? Check out solar panels that we have for sale in Nebraska

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Idaho

Idaho, known for its picturesque landscapes, offers not only 5.5 peak sunlight hours, but also many solar incentive programs. This creates a favorable environment for residents looking to tap into the energy from the sun and reduce their reliance on traditional power sources.

Federal Solar Tax Credit (ITC)	Get 30% of your PV system’s cost back
State Tax Credit	Save from taxation up to $20,000 of your income spent on solar
Net metering	Earn credits and cut your electric bills down
Idaho property tax exemption	Free your commercial system from property tax
Low-Interest Energy Loan Programs	Get a loan of $15,000 for residential installations and $100,000 for others
Solar Easements	Secure your access to the sunlight

Check out solar panels near you!

Looking to build a home solar system? Check out solar panels that we have for sale in Idaho

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Montana

Beautiful Montana may be more commonly associated with rugged outdoor pursuits, but it’s also making strides in solar energy. Despite its northern location and not-so-abundant sunshine, the state offers quite a few solar incentive programs, which makes it a promising location for those looking to harness the power of the sun.

Federal Solar Tax Credit (ITC)	Deduct 30% of your PV system’s cost from your income taxes
Net metering	Sell excess electricity and reduce your bills
Renewable Energy Credits	Save up to $1,000 a year trading RECs
Alternative Energy Revolving Loan Program	Take a 10-year loan of $40,000 for your solar project
Renewable Energy Systems Tax Exemption	Freeze your property tax
Solar Easements	Protect your solar panels from shade

Check out solar panels near you!

Looking to build a home solar system? Check out solar panels that we have for sale in Montana

SHOP SOLAR PANELS

Maryland

Maryland may not bask in as much sunlight as some southern counterparts, but several incentive programs in place ensure that residents can still enjoy significant benefits when making the switch to solar energy.

Federal Solar Tax Credit (ITC)	Return 30% of your PV system cost
Net metering	Sell extra energy and pay for your bills
Renewable Energy Credits	Save up to $1,000 a year trading RECs
Residential Clean Energy Rebate Program	Save additional $1,000
Property Tax Exemption for PV Systems	Freeze your property tax
Solar Easements	Ensure your access to the sun

Check out solar panels near you!

Looking to build a home solar system? Check out solar panels that we have for sale in Maryland

SHOP SOLAR PANELS

Missouri

Missouri, positioned neither in the sun-drenched South nor the frosty North, strikes a balance with 5 sunlight hours and quite a bit of solar incentive programs. This central state is proving that even with a moderate amount of sunshine, your solar project has all the chances to become advantageous.

Federal Solar Tax Credit (ITC)	Return 30% of your PV system cost
Net metering	Cover your electric bills
Columbia Water & Light rebates and loans	Get from $375 to $625 per kW or the first 10 kilowatts, $300 – $500 for every kilowatt until 50, and $150 – $250 for every kilowatt until 100. Receive a loan of $15,000 for home solar systems and $30,000 for commercial.
Missouri property tax exemption	Freeze property tax with an exemption for solar panels
PACE program	Finance up to 100% your solar project
Solar Easements	Protect your solar panels from shade

Check out solar panels near you!

Looking to build a home solar system? Check out solar panels that we have for sale in Missouri

SHOP SOLAR PANELS

Ohio

Ohio, with 4.5 hours of sunlight, proves that solar viability extends beyond sun-drenched regions. With several solar incentive programs in place, Ohioans have good opportunities for embracing solar power.

Federal Solar Tax Credit (ITC)	Get 30% of your PV system’s cost back
Net metering	Sell extra energy into the grid
Renewable Energy Credits	Save up to $1,000 a year trading RECs
ECO-link program	Reduce your loan interest rate by 3%
Property Tax Exemption	Raise your property value but not your taxes
Solar Easements	Secure your access to the sunlight

Check out solar panels near you!

Looking to build a home solar system? Check out solar panels that we have for sale in Ohio

SHOP SOLAR PANELS

Julia Zaraeva

Author

Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.

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