Before 2026, state incentives were a bonus stacked on top of a federal 30%. Now they are the whole thing. That reframes how much attention they deserve: in a state with a strong program the difference between researching this properly and not can be several thousand dollars, and in a state without one, the honest answer is that there is no incentive left to find.
Four kinds of incentive still exist
- State income tax credits. A percentage of system cost credited against state tax. Far less common than the federal credit was, but where they exist they are the closest replacement.
- Upfront rebates. A fixed dollar amount, often per watt or per kWh of storage, paid by the state or your utility. Usually capped, and frequently first-come-first-served until the year's funding runs out.
- Net metering and export rates. Not framed as an incentive, but over 20 years this is usually worth more than any rebate. What your utility pays for exported power determines most of your return.
- Property and sales tax exemptions. Quiet but real — many states exempt the added home value from property tax reassessment, and some waive sales tax on equipment.
States with meaningful programs
| State | What is available | Notes |
|---|---|---|
| New York | 25% state tax credit (capped at $5,000), NY-Sun rebates, near-retail net metering | Currently the strongest overall package in the country |
| California | No state tax credit; SGIP battery rebates from roughly $200/kWh; NEM 3.0 export rates | Export credits fell about 75% versus NEM 2.0 — batteries now matter more than extra panels |
| Massachusetts & Northeast | Performance-based programs, strong net metering, state credits in several states | Generally the strongest region for net metering terms |
| Texas | No state program; no mandatory net metering | Utility and co-op rebates vary widely — this is a utility-by-utility question, not a state one |
| Most other states | Property/sales tax exemptions; scattered utility rebates | Check your specific utility before concluding there is nothing |
Treat every row as a starting point for your own research, not a current quote. These programs change on legislative and budget cycles, caps get hit mid-year, and a program that was open when this was written may be closed by the time you apply.
Why net metering is now the biggest lever
A $1,000 rebate is paid once. An export rate applies to every excess kilowatt-hour your array produces for 25 years. On an 8 kW system exporting even 3,000 kWh a year, the difference between retail-rate net metering at roughly $0.17/kWh and a wholesale-ish export credit near $0.04/kWh is about $390 a year — close to $10,000 across the system's life.
This is why California's shift to NEM 3.0 changed residential solar design there more than the federal credit's removal did, and why the first question to ask about any state is not "what is the rebate" but "what does my utility pay for exports, and for how long is that rate locked."
How to check what actually applies to you
- DSIRE (Database of State Incentives for Renewables & Efficiency) — the standard nationwide tracker, and the right first stop
- Your specific utility, not just your state — municipal utilities and rural co-ops often run their own rebates that state-level lists miss entirely
- Your state energy office or public utilities commission — for current program status and whether funding is still open
- Confirm the funding cap — popular rebate programs routinely exhaust their annual allocation months before the year ends
- Check installer requirements before you buy equipment — many state and utility programs require a licensed installer or certified equipment, which can disqualify a DIY build
That last point matters more than it used to. If a state rebate is now the only incentive available and it requires a licensed installer, that changes the DIY-versus-professional calculation in the payback comparison — check eligibility before ordering a kit, not after. For home battery programs specifically, our battery rebates guide covers storage-side incentives in more detail.