EnergyTools
Incentives

State Solar Incentives Still Available in 2026 (Federal ITC Expired)

· 7 min read

The federal Investment Tax Credit was eliminated on January 1, 2026. But that doesn't mean solar incentives are dead. Many states, utilities, and municipalities continue to offer meaningful financial support for homeowners who go solar.

Here's a comprehensive look at the best state solar incentives still available in 2026.

Top State Solar Incentives in 2026

New York — NY-Sun Program

New York's NY-Sun program offers a per-watt rebate of approximately $0.20/W, which works out to about $1,400 for a 7kW system. Some utilities also offer additional performance-based incentives. NY-Sun has been consistently funded and is one of the strongest state programs in the country.

Massachusetts — SMART Program + State Tax Credit

Massachusetts offers a $1,000 state tax credit for residential solar installations, plus the SMART (Solar Massachusetts Renewable Target) program which pays you for every kWh your system produces. SMART payments are guaranteed for 10 years and vary by utility territory. Combined, these incentives can reduce your net cost by 15–25%.

New Jersey — SREC Market

New Jersey maintains one of the most active Solar Renewable Energy Certificate (SREC) markets in the country. SRECs are typically worth $150–250 per MWh and are sold on an open market. A 7kW system generates roughly 7–9 SRECs per year, adding $1,000–$2,000 in annual income. Learn more at the Incentive Finder.

California — NEM 3.0 + Self-Generation Incentive Program

California's NEM 3.0 net metering policy took effect in 2023 and offers lower (but still valuable) export rates during peak hours. The Self-Generation Incentive Program (SGIP) provides rebates for battery storage. While NEM 3.0 reduced the value of exported solar, pairing solar with storage remains highly economical in California given the state's high retail electricity rates ($0.30–0.45/kWh).

Colorado — Property Tax Exemption

Colorado offers a 100% property tax exemption for residential solar installations. While this doesn't reduce your upfront cost, it means your home's assessed value won't increase after installing solar. For a $24,500 system, this saves you roughly $200–400 per year in property taxes over the system's lifetime.

Maryland — State Tax Credit

Maryland offers a state solar tax credit of up to $1,000 (or 30% of the cost before 2027 sunset). This is a direct reduction in state income tax liability, similar to how the federal ITC worked. Baltimore and Montgomery County also offer additional local property tax credits.

Other Notable State Programs

  • Illinois: Adjustable Block Program pays upfront incentives based on system size. A 7kW system may qualify for $2,000–4,000. Solar renewable energy credits (SRECs) also available.
  • Oregon: State tax credit of up to $1,500 for low-to-moderate income homeowners.
  • Minnesota: Made in Minnesota program offers performance-based incentives for systems using in-state manufactured panels.
  • Rhode Island: Renewable Energy Growth program provides fixed payments for solar electricity production over 15 years.
  • Washington DC: SREC market + property tax exemption + renewable energy rebate program.
  • Vermont: Standard Offer program with 25-year fixed-price contracts for net-metered systems.

How to Find Incentives in Your State

State and local incentives change frequently. Programs get funded, run out of money, and get refunded. Your eligibility depends on:

  • Your specific utility company (not just your state)
  • Your income level (some programs are income-qualified)
  • Whether you own your home
  • Your system size and equipment choices

The easiest way to find every incentive available to you is to use our Incentive Finder. Just enter your address and it shows you all federal, state, utility, and local incentives you qualify for — updated with 2026 data.

Don't Forget Net Metering

Net metering is not a check you receive at installation, but it's one of the most valuable solar incentives — often worth more than upfront rebates over the lifetime of your system. Net metering allows you to receive full retail-rate credit for excess electricity you send to the grid.

Learn more about how net metering works and whether your state offers it.

Ready to find your incentives? Use the EnergyTools Incentive Finder — it's free, no sign-up required.

← Back to Blog