Unleashing the Sun: 4 States with Stellar Solar Incentives in 2023

As the demand for renewable energy continues to rise, the cost of investing in solar power systems for home and business owners is decreasing thanks to state-led incentives to encourage the adoption of solar energy systems to homes. While the benefits of solar energy, such as energy independence, cost savings, and sustainability, are widely known, what often goes unnoticed are the attractive incentives offered by various states in the US. In this blog, we will highlight four US states with some great incentives to add solar and storage to your home. We have included links to supplemental information where you can learn more about each incentive throughout and at the bottom of the article.

1. Oregon

Oregon is the first state we will highlight with attractive incentives for homeowners looking to add solar and storage. Some notable incentives include:

• Solar Electric Incentive Program- If you are a customer of PGE (Portland General Electric) or Pacific Power you are eligible for Oregon’s solar electric incentive program which pays you an upfront rebate of either $1,200 (PGE) or $900 (Pacific Power).
• PGE’s Smart Battery Pilot Program: PGE’s Smart Battery pilot studies the best ways to connect batteries at customer homes to PGE's grid. For their participation in the program, homeowners with qualifying storage systems will see added security and financial incentives. Eguana’s products are among the list of qualified systems.
• Local & Municipal Utility Rebates- Local solar rebates are available in Oregon. According to EnergySage.com, “In Eugene, the Eugene Water and Electric Board will pay $0.40/W to solar homeowners with a maximum rebate amount of $2,500. If you’re a customer of Salem Electric, you can receive a rebate equal to $300 per kW installed, up to the lesser of 50% of project costs or $1,500.”

2. California

Known for its progressive stance on clean energy, California offers a range of incentives to promote solar power adoption.

• Local Solar Rebates- There are two local programs available currently,
  • Rancho Mirage Energy Authority: offers $500 to cover the cost of your permit fee.
  • Sacramento Municipal Utility District (SMUD): offers $300 for installing a residential solar panel system.
• DAC-SASH- The Disadvantaged Communities- Single Family Solar Homes program provides upfront rebates to income-eligible, single-family homeowners installing solar panels. Homeowners must be customers of Pacific Gas and Electric (PG&E), Southern California Edison (SCE) or San Diego Gas and Electric (SDG&E) to take advantage of the incentive.

3. New York

New York has made significant efforts to promote clean energy and offers several incentives to support solar power installations.

• Inflation Reduction Act- An eligible tax credit up to 30% against the cost of the system.
• NY State Solar Energy System Equipment Tax Credit- 25% solar tax credit for purchased home solar systems (max $5,000)
• NY-Sun Megawatt Block Program- This program works to offset the cost of solar. Up to every 1,000 KwH of solar power installed, you can get a certain amount returned.
• Solar Electric Generating System Tax Abatement- property tax exemption for the added home value from a solar and storage system.
• Home solar Project State Sales Tax Exemption- 4% home solar system state sales tax exemption.
• VDER program- A new program replacing net metering. The value stack rate is made up of 4 different components: the wholesale energy, how much the project decreases grid demand, reduced need for future utility upgrades, and environmental benefits.

4. South Carolina

South Carolina has been encouraging the adoption of solar energy systems. Known for its abundant sunshine, the state has implemented various solar incentives and programs to make going solar more accessible and affordable for residents and businesses.

• South Carolina Solar Energy Tax Credit- You can claim 25% of solar costs as a tax credit. This tax credit can carry over for 10 years.
• Utility Solar Power Incentives- Depending on who your utility is, you may get an extra rebate on the cost of your solar system. One company, Santee Cooper offered customers $1.05/W of solar energy that they install on their roofs with the max being $6,300.

The United States federal government offers many different federal incentives as well. One of those incentives is the Solar Tax Credit otherwise known as the ‘Residential Clean Energy Credit’ which can reduce the cost of your system by 30%. If your state wasn’t included in our list, visit the Database of State Incentives for Renewable Energy here.