Solar panel rebates are available in some states, utility service areas, and local jurisdictions, but eligibility depends on your state, electricity provider, city, income, and whether you own the system. As of September 25, 2026, the federal government does not offer a standard cash rebate for a homeowner's rooftop solar installation.
The federal Residential Clean Energy Credit also ended for new expenditures after December 31, 2025. Homeowners installing solar in 2026 should not assume they can claim the former 30% federal credit.
Solar Incentives Available in 2026
| Incentive | Is it available? | How it works |
|---|---|---|
| Federal solar rebate | Generally no | The federal government does not offer a standard cash rebate for residential rooftop solar. |
| Federal residential solar tax credit | No for new 2026 installations | The Residential Clean Energy Credit does not apply to expenditures made after December 31, 2025. |
| State solar rebate | Possibly | Some states offer cash rebates, grants, tax credits, or performance incentives. |
| Utility rebate | Possibly | Electric utilities may offer rebates for solar panels, batteries, or related equipment. |
| Local government incentive | Possibly | Some cities, counties, and public power providers offer local programs. |
| Solar renewable energy certificates | Possibly | Some states allow homeowners to earn money by selling certificates tied to solar electricity production. |
| Net metering | Possibly | Your utility may provide bill credits for excess electricity sent to the grid. Net metering is not the same as a rebate. |
| Federal Home Energy Rebates | Usually not for rooftop solar | These programs generally target insulation, heat pumps, water heaters, appliances, and other efficiency or electrification upgrades, not solar PV panels. |
What Types of Solar Rebates Might You Qualify For?
State energy offices and electric utilities may offer incentives based on:
- Solar system size
- Household income
- Battery storage installation
- Utility service territory
- Installer certification
- Low-income or disadvantaged-community status
- Available program funding
- Whether the system is purchased or financed
Programs may also have application deadlines, waiting lists, equipment requirements, or a requirement to apply before installation begins.
State and Utility Solar Rebates
State and utility programs can use different eligibility rules. Check the current program terms before signing a contract or scheduling installation.
Battery Storage Incentives
A utility may offer a battery incentive even when it does not offer a rebate for solar panels. Battery programs often focus on reducing demand during peak hours or giving the utility access to stored electricity.
Battery incentives can have different rules from solar panel programs. Check the utility's terms rather than assuming both systems qualify.
Solar Renewable Energy Certificates
Some states operate markets for solar renewable energy certificates, commonly called SRECs. An SREC represents the environmental attributes of a specific amount of solar electricity generated by an eligible system.
SREC income is not an upfront rebate. The amount you receive depends on system production, market rules, certificate prices, and whether your system meets the state's eligibility requirements.
Property and Sales Tax Benefits
Some states exempt solar equipment from sales tax or prevent the added home value from increasing property taxes. These incentives reduce your costs indirectly, but they are not cash rebates.
Can You Still Claim the Old 30% Federal Solar Credit?
No, not for a new residential solar system installed after December 31, 2025. The IRS states that the Residential Clean Energy Credit is unavailable for expenditures made after that date. Paying a deposit or signing a contract before the deadline was not enough if the original installation was completed afterward.
A homeowner who installed qualifying solar equipment during 2025 may still be able to claim the credit on a 2025 tax return. The IRS also allows eligible unused credit amounts from prior years to carry forward, subject to the applicable tax rules.
Does Leasing Solar Affect Rebates?
Yes. System ownership affects who receives many incentives.
With a solar lease or power purchase agreement, the solar company usually owns the equipment. The company may claim available tax benefits or receive program incentives, while the homeowner pays for the electricity or equipment under the contract. The Department of Energy states that customers generally are not entitled to the tax benefits when they do not own the solar system.
Ask the installer or financing company these questions in writing:
- Who owns the solar panels and battery?
- Who receives the utility rebate?
- Is the rebate already included in the quoted price?
- Does the contract transfer SRECs to the installer?
- Does the quoted savings estimate assume net metering?
- What happens if the rebate program runs out of funds?
How to Find Solar Rebates in Your Area
Use these five steps before signing a solar contract:
- Search your ZIP code in DSIRE. The Database of State Incentives for Renewables & Efficiency lists state, local, utility, and federal renewable-energy incentives.
- Check your electricity provider's website for solar, battery, demand-response, and interconnection programs.
- Visit your state energy office for current tax credits, grants, and income-qualified programs.
- Confirm eligibility before installation. Some programs require preapproval or an approved contractor.
- Request an itemized quote. The quote should separately identify rebates, tax benefits, utility bill credits, SRECs, financing costs, and expected energy savings.
Be Cautious of "Free Solar Panel" Claims
The federal government does not provide a general program that gives homeowners free solar panels. "Free solar" advertisements usually refer to a lease, power purchase agreement, financing arrangement, or a limited local program rather than free equipment.
Some rebates and utility subsidies can also affect the cost used to calculate a tax credit. The IRS says public utility subsidies and certain rebates tied to the purchase price may need to be deducted from eligible expenses.
Bottom Line
Solar rebates remain available in some parts of the United States. For a 2026 installation, do not count on a federal cash rebate or the former 30% residential solar credit. Check your ZIP code, electricity utility, and ownership arrangement before signing a contract.