Several states and Puerto Rico offer solar incentives in addition to the federal ITC to encourage homeowners to go solar. Each state has different incentives, but there are a few common ones: tax credits, rebates and renewable energy certificates. States with a high number of solar incentives include California, Texas, Minnesota and New York.

Each state has its own set of solar incentives that vary significantly. Different agencies offer different solar financial incentives, consult the Database of State Incentives for Renewables & Efficiency for specifics.

State Tax Credits

State tax credits work like the federal ITC does, but for your state taxes. Exact amounts vary significantly from state to state, and they generally do not reduce your federal tax credits.

State Government Rebates

Some states offer upfront rebates for installing a solar power system. They are typically only available for a limited time while funds are available, be sure to research rebates in your state to get in on the incentive before it runs out. A state government rebate can reduce your solar costs by up to 20%.