Even if your state doesn’t offer solar rebates, you may still be eligible for Solar Renewable Energy Credits (SRECs). In some states, you can earn and sell credits for the electricity your solar system produces. Visit our Solar Renewable Energy Credits (SREC) page to learn more.
Finally, the federal government offers a solar tax credit that can help you go solar. The tax credit, created in 2005, is one of the most important components of the federal government’s support of solar energy, and is available in all states, even the ones with no state rebates or SRECs1. The federal solar tax credit gives you a dollar-for-dollar reduction against your federal income tax. The 26% tax credit applies as long as the home solar system is installed by December 31, 2020. Starting in 2021, the value of the tax credit will step down to 22%. After 2021, the tax credit for residential solar ends. If a homeowner isn’t expecting to pay taxes in the year he or she installed their solar system, they can roll the solar tax credit over to the next year.