Solar Incentives by State (2026)

The federal residential solar tax credit (Section 25D) gave homeowners 30% back on a solar purchase. It ended for expenditures made after December 31, 2025. That single national number is gone, so the value of going solar in 2026 is now mostly local and it varies a lot from one state to the next.

Your state sets the rules that matter most now. Net metering decides how much credit you get for the power your panels send back to the grid. Some states add their own tax credits or rebates on top. Markets like SRECs pay you for the clean energy you produce. Sales-tax and property-tax exemptions quietly lower the real cost. Two homes the same size can see very different math depending on which side of a state line they sit on.

This hub helps you find your state’s specifics. Pick your state below and we will show you the programs that apply where you live, in plain terms.

What changes from state to state

The federal credit, which ended after December 31, 2025, was the same everywhere. The programs that pay for solar now are not. Here is what differs once you cross a state line.

• •Net metering versus newer tariffs. Some states still credit your exported power at full retail value. Others have moved to lower export rates or buy-all and sell-all tariffs that change the payback. California’s shift to NEM 3.0 is the clearest example of how far a state can move the math.
• •State tax credits and rebates. A handful of states add their own credit on top. New York offers a 25% state credit, and Massachusetts adds a credit capped at $1,000. Others have upfront rebate programs.
• •SREC markets. In states like New Jersey, Maryland, and Pennsylvania, your system earns certificates for the clean power it makes, and those can be sold for ongoing income.
• •Sales and property tax exemptions. Many states waive sales tax on the equipment, and exempt the added home value from your property tax bill. That lowers the real cost without writing you a check.
• •Local utility rules and deadlines. Program caps, queue limits, and enrollment deadlines are set state by state, and sometimes utility by utility. A program open today may not be open next year. Permitting and interconnection timelines differ locally too, as our guide to solar permitting in Southern California shows for the Los Angeles, San Diego, and Inland Empire markets.

Explore more solar guides

Once you know your state, dig into the topic guides or find the rules for your specific power company.