Solar Incentives & Rebates 2026

Illinois' primary solar incentive program, administered by the Illinois Power Agency (IPA). Provides a single upfront payment based on the number of Solar Renewable Energy Credits (SRECs) your system is projected to generate over 15 years. One SREC equals one MWh of solar electricity produced. For most residential systems under 10kW in ComEd territory (Group B), the PY2025–26 SREC price is $75.48/REC — a ~10% decrease from PY2024–25. Payments go directly to the Approved Vendor (installer), who passes them to the homeowner as a reduction in system cost. For an average 10.5kW system, the total SREC value before vendor fees typically ranges from $11,000–$14,000, reducing net system cost by 30–45%. Capacity is block-based and fills each program year — apply early through an IPA-approved vendor.

Under Illinois law (35 ILCS 200/10), county assessors must value residential solar energy systems at no more than the cost of a conventional HVAC system, effectively excluding the added home value from solar from property tax assessments. Solar panels typically increase home value by 4–10%, which would ordinarily trigger higher property taxes — this exemption prevents that. Homeowners must file a PTAX-330 form with their county assessor's office to claim the exemption. At Illinois' average property tax rate of ~2.1%, the exemption saves approximately $13,000–$15,000 over the life of a typical system.

Solar energy equipment in Illinois is exempt from the state's 6.25% sales tax under the Illinois Retailers' Occupation Tax Act, as amended by the Climate and Equitable Jobs Act (CEJA). This exemption applies to solar panels, inverters, racking, and related equipment purchased for installation on a residential or commercial property. On a $28,000 solar+battery system, this exemption saves approximately $1,750 at the point of sale.

As of January 1, 2025, new solar customers in Illinois are enrolled in Smart Solar Billing rather than full retail net metering. Export credits apply only to the supply portion of the electric bill — not delivery charges, taxes, or fees. Credits accumulate monthly and are settled at avoided cost at the end of each annual cycle. Solar systems completed and interconnected by December 31, 2024 are grandfathered into full retail net metering for the lifetime of the system. Under Smart Solar Billing, pairing solar with battery storage and sizing systems for maximum self-consumption is strongly recommended, as export credits represent roughly 40–50% of the full retail rate.

Illinois Solar for All (ILSFA) is a state-funded program administered by Elevate Energy that provides solar access to income-eligible households at little or no upfront cost. Eligible homeowners can install rooftop solar with no upfront payment through a purchase, loan, lease, or PPA — with the guarantee that ongoing system costs will not exceed 50% of the value of the electricity produced. The program is funded via SREC sales to utilities, with higher SREC values than the standard Illinois Shines program. Single-family homeowners average over $1,000 in annual electricity bill savings. IMPORTANT: ILSFA reached capacity for single-family and 2–4 unit residential projects in 2025. Applicants can connect with an Approved Vendor to join the waitlist for 2026 funding.

Illinois' Community Solar program allows residents who cannot install rooftop solar — including renters, condo owners, and those with shaded or unsuitable roofs — to subscribe to a share of an off-site solar farm and receive credits on their ComEd or Ameren electricity bill. Subscribers typically save 5–20% on their electric bills with no installation required. Income-eligible households can participate through Illinois Solar for All's community solar track at reduced or no cost. The program is part of Illinois Shines and administered by the IPA.

Solar energy systems are exempt from property tax assessment in California. The added home value from solar panels will not increase your property taxes.

California rebate program for battery energy storage systems. As of January 2026, general market budgets are CLOSED in most utility territories. Equity budgets ($850-$1,000/kWh) remain available for qualifying low-income households and those in high fire-threat districts, but are on waitlist.

New program launched June 2025 with $280 million in funding for low-income customers statewide, including POU customers like LADWP and SMUD. Provides rebates for solar and battery storage installations.

Net billing tariff that credits solar customers for excess energy sent to the grid. Export rates vary by time of day and season, with higher rates during peak demand periods.

Solar energy systems that are certified as renewable energy systems are exempt from property tax assessment on the value they add to your home in New Jersey.

Solar energy devices and systems are fully exempt from New Jersey sales and use tax, eliminating the 6.625% state sales tax on eligible solar equipment purchases.

Under the SuSI ADI Program, eligible residential solar installations earn one SREC-II for every megawatt-hour of production, with residential net-metered systems receiving a fixed incentive of $85 per MWh for 15 years.

Texas offers a 100% property tax exemption on the added home value from solar panel installations. This means your property taxes won't increase due to your solar system, even though it adds value to your home. For a typical $25,000 system, this saves approximately $500-750 per year in property taxes.

Pennsylvania law requires investor-owned utilities — including PECO, PPL, Duquesne Light, Met-Ed, and Penelec — to offer 1:1 retail-rate net metering for residential systems up to 50 kW. Every kWh you export offsets a kWh you consume at the full retail rate. Credits roll forward monthly and are reconciled each year on May 31, with utilities required to pay a cash surplus for net annual overproduction. Note: PPL has proposed shifting to hourly wholesale (LMP-based) credits in 2026, so PPL customers should install sooner to lock in current terms.

Pennsylvania's Alternative Energy Portfolio Standard (AEPS) includes a 0.5% solar carve-out, creating an in-state market for Solar Renewable Energy Credits. You earn one SREC for every 1,000 kWh (1 MWh) your system produces, which can be sold to utilities that must meet the solar requirement. In 2026, PA SRECs have traded roughly in the $22–$40 range. A typical residential system generates about 8–12 SRECs per year, providing ongoing income on top of energy savings. Pennsylvania closed its borders to out-of-state SRECs in 2017, which strengthened in-state prices.

Pennsylvania received federal Solar for All funding to expand residential solar access for low-income and disadvantaged households. The program provides grants and low-cost financing to reduce or eliminate upfront costs for qualifying homeowners, with the goal of delivering meaningful electricity bill savings. Program details and enrollment are administered at the state level and continue to roll out through 2026.

Florida exempts solar energy systems from the state's 6% sales tax under Statute 212.08(7)(hh). The exemption covers all components certified by the Florida Solar Energy Center — panels, inverters, racking, and related equipment — saving roughly $1,800–$2,500 upfront on a typical residential installation. The exemption is applied automatically at the point of sale.

Under Florida Statute 193.624, 100% of the added home value from a residential solar energy system is exempt from property tax assessment. This is a permanent exemption that applies for as long as you own the system, so your property taxes will not increase because of your solar installation even though it raises your home's value.