Homeowner's Guide — Education

How Solar Rebates Work

Solar rebates are an easy way to reduce your cost of going solar.

Rebates are incentives you receive upfront when you install solar panels for your home. States and utility companies can provide rebates at a fixed flat rate regardless of the size of your system. Other utility rebate programs will depend on the size of your home’s system - the amount of kilowatts (kW) you installed for your home.

Solar rebates are usually locally-based incentives, so your eligibility will be based on where you live.

We recommend you speak with several solar installation companies and ask them to help you find rebates available in your local area.

Utility Company Rebates

Local utility rebates may require you to submit detailed information about your solar system design, equipment, cost, and even about your solar installation company. Your solar installer can help you with the application process or apply for these rebates on your behalf.

Once your application is approved, you will receive a rebate to reduce the cost of your home’s solar system. In most cases, rebates or any other subsidies provided by your utility company to install a solar system for your home are excluded from your federal income taxes.

State Government Rebates

State rebates are similar to utility rebates in that they require you to submit detailed information about the design and equipment of your home’s solar system. This is another type of rebate where your solar installer can help you with the application process.

State government rebates will reduce the cost of going solar, but do not impact or reduce the amount of your federal solar tax credit.

Solar Equipment Manufacturer Rebates

Solar Equipment Manufacturers will offer rebates to customers who purchase and install their products. You can usually apply for these rebates on the company’s website. Each company has different requirements, but you should typically expect to provide proof of your installation and verification from your utility company that your system is installed and working

Cash Rebates

Cash rebates can reduce your cost of going solar by as much as 10-20%, but these rebates are usually available for a limited time and will end once a specific amount of solar systems are installed in a specific geography.

Cash rebates can be offered by your utility company, state, or local city government to encourage homeowners to go solar.

Rebates Resources

DSIRE Incentives Database

The Database of State Incentives for Renewables and Efficiency (DSIRE) is a comprehensive database for homeowners to search for and find solar energy incentives in their individual state and across the country.

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