Complete guide to state solar incentives for Florida, Texas, Arizona, Michigan, New Mexico, Oregon, and Illinois
Solar incentives have evolved dramatically over the past few years, and 2026 marks a pivotal moment for homeowners considering solar energy. With federal policies in flux and state programs constantly changing, it's more important than ever to understand what state solar incentives are still available — and how to maximize them before they disappear.
The good news? There are still plenty of ways to save on solar across the country. In this comprehensive guide, we'll break down every available solar incentive 2026 for homeowners in Florida, Texas, Arizona, Michigan, New Mexico, Oregon, and Illinois.
Whether you're a first-time solar shopper or looking to add battery backup to your existing system, this guide will help you understand exactly what incentives you qualify for — and how to stack them together for maximum solar savings 2026.
Florida offers a 100% property tax exemption for the added value of solar panels to your home. This means your home's assessed value won't increase after solar installation, saving you money every year in property taxes.
Save $500-$2,000/year in property taxes
Florida waives state sales tax on solar equipment purchases, including panels, inverters, mounting hardware, and batteries. This saves homeowners 6-7% on their total system cost.
Save 6-7% on equipment costs
FPL, Duke Energy, and Tampa Electric all offer net metering programs, crediting you for excess solar your system sends back to the grid at retail electricity rates.
Get credited at full retail rates
Florida's abundant sunshine makes solar incredibly valuable in 2026. With more sunny days than almost any other state, Florida homeowners generate more solar energy — maximizing every dollar spent on their system.
Average 245 sunny days per year
Texas provides a 100% property tax exemption for residential solar systems. Your home's taxable value doesn't increase with solar, regardless of how much money solar saves you.
No added property taxes for solar
Oncor, Austin Energy, and CPS Energy offer rebates for residential solar installations. These vary by utility but typically range from $500-$2,500 per installation.
$500-$2,500 in utility rebates
Many Texas utilities offer net metering programs, allowing you to earn credits for excess energy sent back to the grid. While not required by state law (unlike other states), many providers still offer favorable terms.
Varies by utility provider
Texas's deregulated electricity market means you can choose your retail electricity provider — many offer special solar-friendly rates and plans that further reduce your costs. Plus, with electricity rates among the highest in the nation, solar savings are substantial.
Choose from competitive providers
Arizona offers one of the best Arizona solar tax credits 2026 in the country — a 25% state tax credit on solar equipment (capped at $1,000). This is in addition to any federal credits you may claim.
Up to $1,000 state tax credit
Arizona waives state sales tax on solar energy systems, including panels, inverters, mounting equipment, and batteries. This exemption can save homeowners thousands on installation costs.
Save 5.6% on equipment costs
Arizona provides a full property tax exemption for residential solar systems. The added value of your solar installation won't increase your property taxes.
No added property taxes
Arizona Public Service (APS) and Salt River Project (SRP) offer excellent solar programs, including net metering, buyback programs, and special solar rate plans for Arizona homeowners.
Multiple utility incentives available
Arizona has some of the best solar savings in the entire country in 2026!
Michigan Saves is a nonprofit lender offering low-interest financing for solar and energy efficiency upgrades. They specialize in helping Michigan homeowners go solar with affordable payment options.
Low-interest solar loans
DTE Energy and Consumers Energy offer net metering programs and solar rebates for Michigan homeowners. Rebates typically range from $500-$3,000 depending on system size.
$500-$3,000 in utility rebates
Michigan provides a property tax exemption for residential solar systems. The added value from your solar installation won't increase your property taxes.
No added property taxes
Michigan homeowners are going solar faster than ever in 2026 to lock in savings before any more incentives change. With electricity rates rising and incentives still available, there's never been a better time.
Lock in savings now!
New Mexico offers one of the most generous New Mexico solar rebates in the nation — a 10% state tax credit (capped at $6,000) for residential solar installations. This is in addition to the federal credit!
Up to $6,000 state tax credit
New Mexico provides a 100% property tax exemption for residential solar systems. The value of your solar installation is excluded from your home's assessed value for property tax purposes.
No added property taxes
PNM (PNM) and El Paso Electric both offer net metering programs for New Mexico homeowners, crediting you for excess energy sent back to the grid at retail rates.
Full retail rate credits
New Mexico's abundant sunshine (310+ sunny days per year) combined with generous tax credits makes it one of the best states for solar ROI in 2026. Homeowners see returns faster than almost anywhere else.
310+ sunny days per year
The Energy Trust of Oregon offers substantial cash incentives for residential solar installations. Current Oregon solar rebates 2026 range from $0.15-$0.40 per watt, depending on your utility and system size.
$500-$3,000+ in rebates
Pacific Power and PGE (Portland General Electric) both offer net metering programs that credit you at retail rates for excess solar energy exported to the grid.
Full retail rate credits
Oregon provides a 100% property tax exemption for residential renewable energy systems, including solar panels and battery storage. Your home's assessed value won't increase with solar.
No added property taxes
Oregon homeowners are rushing to go solar in 2026 to take advantage of remaining state incentives before they change. With Energy Trust rebates still available, there's never been a better time to install.
Act now before incentives change!
Illinois Shines is one of the most generous Illinois solar incentives 2026 in the Midwest. This program provides upfront rebates and Solar Renewable Energy Credits (SRECs) for residential solar installations.
Rebates + SREC income
Illinois homeowners can earn SRECs (Solar Renewable Energy Credits) for every megawatt-hour of solar energy their system produces. These can be sold for additional income, often $50-$100 per credit annually.
Extra income from solar production
ComEd and Ameren both offer net metering programs, crediting homeowners at full retail rates for excess solar energy exported to the grid.
Full retail rate credits
Illinois provides a property tax exemption for residential solar systems. The added value of your solar installation won't increase your property taxes.
No added property taxes
Illinois has some of the most generous remaining solar incentives in the Midwest in 2026!
Combining multiple incentives can save you 40-60% on your solar system
The 30% federal Investment Tax Credit (ITC) is available to all eligible homeowners nationwide. This applies to the total cost of your solar system including equipment and installation.
States like Arizona (25%, up to $1,000), New Mexico (10%, up to $6,000), and others offer additional tax credits that stack on top of the federal credit.
Many utility companies offer cash rebates ranging from $500-$3,000. These are often available in addition to tax credits.
Many states exempt solar equipment from state sales tax, saving you an additional 5-8% on your system cost.
By offsetting your electricity usage with solar and net metering credits, you'll save $100-$300+ per year on utility bills for 25+ years.
Example: A $20,000 system in Arizona could cost you as little as $8,000-$10,000 after stacking all incentives!
The uncertainty around federal incentives makes it more urgent than ever to go solar sooner rather than later
The 30% federal tax credit has already stepped down from its peak and may change again in coming years. Lock in the current 30% credit while you can — once it changes, it can't be applied retroactively.
Utility rates increase every year. The sooner you go solar, the more years you'll benefit from locked-in energy costs and avoided rate increases.
State programs like Oregon's Energy Trust and Illinois Shines have limited funding. Once the money runs out, those incentives are gone — they don't come back.
As more homeowners go solar, installer schedules are filling up. The longer you wait, the longer you'll be on a waitlist. Start your free consultation today to get ahead of the queue.
Don't wait! Every year you delay costs you thousands in lost savings and potential incentive changes.
We navigate every available incentive and rebate so you get the absolute best deal — completely free of charge
Our team knows every federal, state, utility, and local incentive available in your area. We'll make sure you don't leave a single dollar on the table.
We'll show you exactly how much you'll save by stacking all available incentives — including tax credits, rebates, and net metering benefits over 25+ years.
Applying for incentives can be confusing. We guide you through the paperwork to ensure everything is filled out correctly for maximum approval.
Different installers include different incentives in their pricing. We compare quotes to ensure you're getting the best overall deal — not just the lowest price.
Our solar consultant team is here to answer all your questions about incentives, equipment, and financing options — at no cost to you.
Our relationship doesn't end at installation. We're here to help you maximize your residential solar incentives for years to come.
Get your free solar consultation today and let us help you navigate every available incentive to get the best deal on solar in 2026.
Or call us directly: (555) 123-4567