Solar Tax Credits & Incentives
Making the switch to solar is about more than just going green; it’s also about taking advantage of financial savings available in many cities and states across the U.S. While the potential incentives and rebates available will vary widely from location to location, many homeowners can reduce upfront costs and improve long‑term returns. Here is a brief overview of some of the most common programs that may be available.
Federal Investment Tax Credit (ITC)
The ITC had a long life, from 2005 until 2025, during which time it provided many homeowners with a sizeable tax credit, as much as 30% some years, to help reduce the costs of solar equipment. Due to legislation in the One-Big-Beautiful Bill, the ITC expired at the end of December 2025.
However, the tax credit does remain available to installations belonging to third-party owners; in most cases, this is not the homeowner but the business that can get the tax credit. Many companies offering third-party ownership pass these credits down to their customers in some form of savings.
Disclaimer: SunPower does not provide tax, legal, or accounting advice. Customers should consult a qualified tax professional.
State & Local Incentives
Following the lead of federal programs, many states, counties, cities, etc, have established their own tax incentives or rebates. These may include:
- 1Property Tax Exemptions
- 2Sales Tax Exemptions
- 3State Rebates
- 4Performance‑Based Incentives (PBIs)
Property Tax Exemptions
Many state governments acknowledge that solar increases property values and provide exemptions for qualifying homeowners, protecting them from paying for this portion of the tax assessment. Terms and conditions, such as the number of years an exemption can be applied and percentages of value that is exempt, vary widely from locale to locale.
The resource with the most detailed accounting of these localized incentives is the Database of State Incentives for Renewables & Efficiency (DSIRE). NC State University operates this database, which is funded by the U.S. Department of Energy.
Utility Programs
Many utility companies across the U.S. have also begun contributing to the savings available to homeowners utilizing solar power. These utility programs often offer homeowners long-term savings potential.
Net Metering:
Net Metering is one of the most common programs made available to homeowners with solar installations and may provide significant potential for savings. Net Metering often exchanges excess energy that has been exported from a residential solar system to the grid for energy credits. These energy credits can then be applied against any electricity drawn from the grid when the sun is not shining. Terms vary by utility and may change over time.
Utility Rebates:
Some utility companies offer rebates for solar systems that have been installed, helping to cut down upfront costs.
Time‑of‑Use Programs:
Time-of-use programs are utility-based structures for billing, where rates vary based on the time of day when the electricity is being drawn from the grid. Hours with higher demand on the grid are often charged more, and hours with lower demand are often charged less. Customers with solar storage solutions such as the Enphase 10C may enjoy benefits from shifting energy use to off‑peak hours.
Ask your SunPower representative about local programs that might be available to you so you can take advantage of these savings.
Environmental Benefit
For some, the greatest incentive for solar use is the environmental benefits. Green energy is a promise to the future, and solar is one of the leading resources for truly green, renewable energy. Solar panels produce no greenhouse gases during operation, helping homes and communities reduce their carbon footprint while also decreasing reliance on fossil fuels. While environmental impact varies by region, solar adoption contributes to cleaner air and reduced carbon emissions.