The short answer
State and utility solar incentives were untouched by the federal repeal. Five categories still exist across various states: income tax credits, utility rebates, property tax exemptions, sales tax exemptions, and renewable energy certificate markets. For many homeowners these are now the only incentives claimable in their own name, which makes knowing yours precisely worth the afternoon.
- 01The 2025 repeal was federal. Nothing at state or utility level changed with it.
- 02Five categories to check: income tax credit, utility rebate, property tax exemption, sales tax exemption, and SREC markets.
- 03Net metering rules are separate again, and often worth more over twenty years than any rebate.
- 04Check the authoritative database rather than a competitor's website, and check it quarterly.
When the federal credit ended, a lot of solar companies stopped talking about incentives entirely. That was an overcorrection. The repeal was federal and it changed nothing at state or utility level, which means in some territories a homeowner can still claim real money in their own name. In those places the companies that know the detail are quietly winning appointments from the ones that assume everything is gone.
Which categories still exist?
Five, and they behave differently enough that lumping them together confuses customers.
- 01
State income tax credits
A handful of states run their own credit against state tax liability. These work like the old federal credit did, claimed on a return, and they are the closest thing to a direct replacement where they exist.
- 02
Utility rebates
Paid by the utility rather than the government, often per watt installed, and frequently capped by a budget that runs out partway through the year. These are the ones with real deadlines, and the deadline is usually "when the money is gone".
- 03
Property tax exemptions
A system raises a home's value, and in many states that added value is exempt from property tax assessment. It is not cash in hand, which makes it easy to skip, but it answers the objection about the tax bill going up.
- 04
Sales tax exemptions
Some states exempt solar equipment from sales tax, which comes straight off the installed price. Quiet, automatic, and worth naming because the homeowner will not otherwise notice it.
- 05
SREC markets
In a few states the system generates certificates that can be sold, producing income over years rather than a discount up front. Complicated to explain and substantial where it applies.
What about net metering?
Net metering is not an incentive in the rebate sense, and it is often worth more than all of the above combined. It is the rule governing what the utility pays for the electricity a system exports, and the terms vary enormously by state and by utility inside a state.
It also changes. Several states have moved from full retail credit to something less generous, usually with a grandfathering window for systems connected before a date. Where that applies it is a legitimate reason to move now, and unlike guessing at federal policy it is a published rule with a published date on it.
How should you use this in a sale?
Specifically, and only where it is true. A vague "there are still state incentives available" is worse than saying nothing, because it sounds like the thing a salesperson says when there is nothing left.
- Name the programme. "Your utility pays a rebate of X per watt, and their budget for this year is not exhausted yet." That is a fact somebody can check.
- Say when it ends, if it does. Utility rebate pools and net metering grandfathering both have real deadlines, which is honest urgency rather than manufactured urgency.
- Put it on the quote, itemised. A homeowner comparing three quotes should be able to see which of you did the work.
- Say who claims what. Some of these are claimed by the homeowner and some only apply to owned systems, which interacts with whether you are selling a cash system or third-party ownership. See solar lease vs PPA for installers.
Why this is worth an afternoon
Because almost nobody has done it. Most solar websites in most territories still lead with a federal credit that no longer exists for the customer reading the page, and their reps are working from the same stale briefing. Being the company that can name the actual programmes in your county is a real advantage, and it costs one afternoon plus a quarterly recheck. For the federal half of that briefing, see is there still a solar tax credit in 2026.
It is also content. A page per territory covering what genuinely applies there is exactly what local search rewards, and it is the sort of thing a homeowner sends to their spouse. See how to write solar service area pages.
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Common questions
- Did state incentives change when the federal credit ended?
- No. The repeal was federal. State credits, utility rebates, property and sales tax exemptions and net metering rules are all set locally and were untouched, though several have their own separate deadlines.
- Where can I check what applies in my state?
- DSIRE at dsireusa.org, run by NC State, is the authoritative public database and covers every state and most utilities. Check quarterly, because utility rebate budgets and net metering terms change mid-year.
- Are state incentives enough to replace the federal credit?
- In a few states, close to it. In most, no. They are worth knowing precisely rather than being oversold, because a homeowner who checks and finds you exaggerated will not buy from you.
- Do state incentives apply to leases and PPAs?
- It varies by programme. Some are claimable only by the system owner, which on third-party ownership is the finance company rather than the homeowner. Check each programme's terms before you put it on a quote.
