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Tax Incentives & Credits

Many tax credits and rebates are available to encourage homeowners to invest in solar energy systems. For example, you can get 30% of your total system costs back from equipment and installation as a federal income tax credit when you file your taxes. This would mean saving $7,500 on a system worth $25,000.

When you combine this with state and local rebates, and Solar Renewable Energy Credits (SRECs), you can cut your total costs almost in half. SRECs are generated throughout the year, and you can sell them to utility companies to help you create a return on your investment.

In addition to federal tax credits, many home owners find that there are significant incentives in their state. Many states and municipalities offer rebates of $1,000 or more for home owners who have installed a solar power system. Learn more about state incentives for renewable energy in the Database of State Incentives for Renewables & Efficiency.

Maryland Incentives

  • Federal tax credit 30%
  • Maryland State grant $1,000
  • Property tax credit $5,000 (Baltimore County and Prince George’s County)
  • $2,500 (Anne Arundel County and Harford County)
  • MD SREC For every 1,000 kWh you generate you qualify for an SREC. The value of the SREC in Maryland is $59.

Learn more about Maryland Tax Incentives

Virginia Incentives

  • The solar investment tax credit (ITC) allows homeowners to recoup a big chunk of equipment and installation costs. Homeowners claim the credit when filing federal tax returns. A similar credit is available for businesses.
  • The dollar-for-dollar credit is worth 30% of the total cost.
  • This Virginia solar incentive has a huge impact on the total cost of making the transition to solar.

Learn more about Virginia Tax Incentives

Pennsylvania Incentives

  • Federal tax credit 30%
  • PA SREC For every 1,000 kWh you generate you qualify for an SREC. The value of the SREC in Pennsylvania is $40
  • Philadelphia Solar Rebate program Philadelphia residents make qualify for a $200 rebate for every KW of solar power installed.

Learn more about Pennsylvania Tax Incentives

Washington DC Incentives

  • Federal Tax credit 30%
  • DC SREC for every 1,000 kWh you generate you qualify for an SREC. The value of the SREC in DC is $400.

Learn more about Washington DC Tax Incentives

Arizona Incentives

  • Allows eligible homeowners to reduce the amount of tax they owe by up to 30% of their solar panel installation cost from their federal income taxes.
  • The state tax credit is valued at 25% of the total system cost, up to a maximum of $1,000 in total.

Learn more about Arizona Tax Incentives

Check out the tax credit opportunities for Maryland, Pennsylvania, Washington DC, Virginia, and Arizona.