What are solar rebates & incentives?

Rebates and incentives are a crucial way to encourage broader adoption of solar energy and full home electrification across the country. These incentives will typically come from your utility, state government, or the federal government in the form of tax credits, property tax abatements, one-time rebates, or performance-based rebates.

How much is a solar panel rebate?

Solar panel rebate amounts are usually quite small these days—often under $500 or $1,000. There are exceptions, however, including Illinois, Oregon, Mississippi, and New York, which still offer many utility customers rebates worth several thousand dollars. Here are the states with current solar rebate programs:

Is a solar rebate a tax refund?

It is not a rebate or a refund, but it reduces what you owe on income taxes. Depending on where you live, you may be eligible for additional solar incentives, such as tax breaks and rebates. Overall, New York and Oregon have the most state-funded solar incentive programs.

How do solar rebates work?

Unlike tax credits, rebates are typically received as a direct payment or a discount on the purchase price. For example, if there is a $1,000 rebate on a $10,000 solar panel system, you pay $9,000, or if you pay the full amount upfront, you might receive $1,000 back after the purchase. Can I use more than one solar incentive?

What is a solar tax credit and a rebate?

A tax credit is claimed through your tax returns, while a rebate is a partial refund you get after the solar panels are purchased. Solar incentives are subject to change — check with your local authorities for the most up-to-date information. Tax credits for solar installations have historically benefited higher-income homeowners.

How do I get a solar rebate?

They are typically received as a direct payment and not tied to your tax filings. Manufacturers, local governments or utility companies can offer solar rebates. Low-interest loans: Some states and utilities offer low-interest loan options specifically to make residential solar installations more affordable.