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Solar Incentives & Tax Credits

The 30% federal tax credit plus state and local incentives can reduce your solar cost by 40-50%. Here is what is available in each state.

All States

30% Federal Solar Tax Credit

The Residential Clean Energy Credit provides a 30% tax credit on your total solar system cost, including panels, inverters, battery storage, and installation. Available through 2032.

Example savings on a $20,000 system:

$6,000 credit

Net cost after credit: $14,000

What is Eligible?

  • Solar panels and racking
  • Inverters and microinverters
  • Battery storage systems
  • Installation and labor
  • Permitting fees
  • Electrical panel upgrades (if required)

State-Specific Incentives

California

Federal Solar Tax Credit (30%), SGIP storage rebate, property tax exclusion

  • 30% Federal Solar Tax Credit
  • SGIP battery storage rebates
  • Property tax exclusion for solar
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Hawaii

Federal Solar Tax Credit (30%), state property tax exemption, utility DER programs

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Illinois

Federal Solar Tax Credit (30%), Illinois Shines (Adjustable Block Program), utility smart inverter rebates

  • Illinois Shines REC payments (15-year term)
  • 30% Federal Solar Tax Credit
  • ComEd/Ameren smart inverter rebates
Explore Illinois solar

Solar Incentive FAQs

What is the federal solar tax credit?
The federal Residential Clean Energy Credit provides a 30% tax credit on the total cost of your solar system, including installation and battery storage. This credit is available through 2032 and applies to all three states we serve.
Can I combine federal and state incentives?
Yes. The 30% federal tax credit stacks with state and local incentives. In California, add SGIP storage rebates and property tax exclusion. In Hawaii, add property tax exemptions. In Illinois, add Illinois Shines REC payments and utility rebates.
How do I claim the federal solar tax credit?
You claim the credit on IRS Form 5695 when filing your federal taxes. The credit is non-refundable, meaning it reduces your tax liability dollar-for-dollar. If your credit exceeds your tax liability, you can carry the remainder forward.
What is SGIP in California?
The Self-Generation Incentive Program (SGIP) provides rebates for battery storage installations in California. Rebate amounts vary by utility territory and program funding. Equity tier residents may qualify for higher rebates.
What is Illinois Shines?
Illinois Shines (Adjustable Block Program) pays you for the Renewable Energy Credits (RECs) your solar system generates over 15 years. REC payments can add $5,000-$10,000 in value for a typical residential system.

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