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Solar Incentives by State

Hi . The price of going solar has fallen more than 59% over the last decade. Today, it’s cheaper & easier than ever thanks to incentives at both the federal and state levels.

First and foremost, no matter what you spend to purchase a solar system for your home, the federal government will give you 30% back on your federal taxes thanks to the new Residential Clean Energy Credit. The only catch here is that you must opt to own your system. Leases & Power Purchasing Agreements will give the tax break to your solar provider (we do not recommend).

Arizona

  • The Residential Arizona Solar Tax Credit reimburses you 25% of the cost of your solar panels (up to $1,000) off that year’s personal income tax statement.
  • There is no sales tax on solar panel equipment.
  • There is no additional property tax for the value solar panels add to your home.

Nevada

  • Nevada has a utility-based rebate program for solar. NV Energy & Valley Electric Association customers receive a 75% retail rate credit for their excess production of solar energy.
  • NV Energy offers battery storage incentives (Residential Energy Storage Incentives | NV Energy) with customers on time-of-use rate plans.
  • Because there is no state income tax in Nevada, there is no state income tax credit.
  • Property tax exemptions are only offered for solar farms.
  • Solar access and solar easement laws make it easier for residents to install and use solar energy.

New Mexico

  • The New Mexico State Solar Tax Credit offers 10% of the final cost (Up to $6,000 state tax reduction).
  • New Mexico offers a sustainable building efforts credit that can allow taxpayers a credit of $6.50 per square foot of their residence.
  • New Mexico offers both state sales tax and property tax exemptions on solar systems.
  • New Mexico has net metering incentives that vary by locale.

Texas

  • Texas does not offer state solar rebates but offers a net metering program for residential solar energy systems. The rate at which excess solar energy is credited back to homeowners will vary by utility company.
  • Because there is no state income tax in Texas, there is no state income tax credit.
  • There is no additional property tax for the value solar panels add to your home.
  • Texas does have solar rights laws to protect residents.

As you can see there are incentives all the way from 30% back at the federal level down to your specific utility company.

Zac Bishop

Zac Bishop

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