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Solar incentives by state, 2026

What your state actually offers -- and what expired

The 30 percent federal residential solar credit (Section 25D) is gone as of December 31, 2025. State programs, SREC markets, property tax exemptions, and utility net metering rules are the remaining levers. This page covers all 51 jurisdictions ranked by overall solar economics.

No residential federal credit in 2026 -- Section 25D expired December 31, 2025

What the incentive badges mean on each state card

State tax credit

A direct state income tax credit for solar installation. Separate from any federal program.

SREC market

A Solar Renewable Energy Credit market where your solar production earns tradeable certificates.

Prop. tax exemption

Solar adds value to your home without increasing your property tax assessment.

Sales tax exempt

Solar equipment and/or installation is not subject to state sales tax.

States and DC analyzed
51
States with an active state solar tax credit
7
States with an active SREC market
9
States with a solar property tax exemption
43

Tier 1 -- Best Solar Economics (9 states)

High electricity rates, strong net metering, state credits, or all three. These states typically see payback in 5 to 11 years with zero federal credit assumed.

Tier 2 -- Strong Solar Economics (18 states)

Above-average solar opportunity with solid economics in the right utility territory. Payback typically 9 to 15 years.

Tier 3 and 4 -- Moderate and Limited Economics (24 states)

Solar is viable in these states for specific rate structures or high-sun profiles, but the overall economics are more constrained. Review individual state details carefully.

All 51 jurisdictions at a glance

State incentive signals: every state, one table

State solar incentive signals for all 51 US jurisdictions, 2026
State Rate Payback State credit SREC Prop. tax View
Alabama 16.2¢ 14-15 yr View
Alaska 25.8¢ 8-12 yr View
Arizona 16.0¢ 9-12 yr View
Arkansas 12.7¢ 16-18 yr View
California 33.2¢ 8-16 yr View
Colorado 16.8¢ 9-11 yr View
Connecticut 30.8¢ 8-10 yr View
Delaware 16.3¢ 11-12 yr View
District of Columbia 24.0¢ 5-6 yr View
Florida 15.8¢ 8-10 yr View
Georgia 14.1¢ 15-16 yr View
Hawaii 43.0¢ 5-9 yr View
Idaho 12.6¢ 14-19 yr View
Illinois 17.8¢ 6-10 yr View
Indiana 16.1¢ 13-17 yr View
Iowa 12.7¢ 13-16 yr View
Kansas 15.1¢ 16-18 yr View
Kentucky 13.4¢ 18-19 yr View
Louisiana 12.9¢ 16-18 yr View
Maine 32.2¢ 9-12 yr View
Maryland 20.1¢ 10-11 yr View
Massachusetts 30.5¢ 7-9 yr View
Michigan 20.0¢ 9-13 yr View
Minnesota 15.4¢ 9-12 yr View
Mississippi 14.7¢ 16-18 yr View
Missouri 12.2¢ 14-15 yr View
Montana 13.3¢ 12-15 yr View
Nebraska 11.8¢ 16-18 yr View
Nevada 14.4¢ 9-11 yr View
New Hampshire 26.5¢ 9-12 yr View
New Jersey 23.1¢ 8-10 yr View
New Mexico 15.1¢ 10-13 yr View
New York 30.0¢ 8-10 yr View
North Carolina 14.6¢ 13-15 yr View
North Dakota 11.6¢ 14-18 yr View
Ohio 17.5¢ 11-13 yr View
Oklahoma 12.9¢ 16-17 yr View
Oregon 14.6¢ 8-16 yr View
Pennsylvania 20.3¢ 8-10 yr View
Rhode Island 29.4¢ 6-8 yr View
South Carolina 16.1¢ 7-9 yr View
South Dakota 13.2¢ 10-14 yr View
Tennessee 12.8¢ 17-19 yr View
Texas 15.4¢ 9-11 yr View
Utah 13.3¢ 11-14 yr View
Vermont 23.3¢ 10-14 yr View
Virginia 16.0¢ 12-13 yr View
Washington 14.1¢ 11-16 yr View
West Virginia 14.4¢ 14-18 yr View
Wisconsin 18.7¢ 11-15 yr View
Wyoming 13.0¢ 8-12 yr View

Payback estimates assume zero federal residential credit (Section 25D expired December 31, 2025). Rates sourced from ElectricChoice June 2026. Incentive status from DSIRE.org verified by data date on each state page.

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